High Fashion Smackdown

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The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.

In today's edition, Austin weighs the pros and cons of two high-fashion retailers, Michael Kors and True Religion Jeans. Austin thinks True Religion is a classic story of mispricing, while Michael Kors is a red-hot brand that's got room to run. Each stock has a very legitimate case to be made, but Austin gives his nod to the play here with more value, True Religion. The company has a track record of strong free cash flow, trades for low multiples, has no debt, and a pile of cash.

One reason they're so cheap today is that they took a big hit last quarter, sending them tumbling. Despite investing for the long-term here at The Fool, it's dips like that which show us why it's still important to watch the quarterly performance of the stocks on your watchlist. That's why we've compiled a new report: "Fourth-Quarter Earnings Report: 7 Stocks You'll Want to Watch." The report won't be available forever, so we invite you to enjoy a free copy today. You can access it by clicking here.

At the time this article was published Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Fossil.Motley Fool newsletter services recommendFossil and True Religion Apparel. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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