Nike (NYSE: NKE) has agreed to sell its Starter brand to Iconix (NASDAQ: ICON) for $60 million.

Starter is best known for its jackets bearing the logos of professional sports teams that were wildly popular during the early 1990s. As evidenced by the low price Nike is receiving for the brand, Starter has been in decline for years.

But the deal is consistent with the Iconix strategy of acquiring brands off the scrapheap and seeking to resuscitate them through licensing deals and clever marketing. Iconix does none of its own manufacturing, leaving it free to focus on maximizing brand value and selling licenses.

Iconix has been tremendously successful (take a look at the stock chart) with this approach, and owns brands including Rocawear, Danskin, London Fogg, Mudd, Joe Boxer, and Candie's.

Interestingly, Iconix founder and CEO Neil Cole is the less-known brother of Kenneth Cole, the founder and embattled CEO of Kenneth Cole (NYSE: KCP). Neil labored in anonymity for decades while his brother became a household name, but Iconix's market value has eclipsed that of Kenneth Cole. Still, numerous parties have called for a new CEO at that company.

As its shares sag, Kenneth Cole (NYSE: KCP) is finding itself the target of much media coverage -- Everyone has an idea for how to right the ship!

Fortune thinks it's time for the CEO leave the company he built: "Now there are signs that Cole, the company's chairman and chief executive as well as a notorious micro-manager, may finally be ready to step aside and relinquish day-to-day control to a more seasoned executive, though he would remain in an oversight role. A search is currently underway for such a person, and at least one major department store executive has been contacted about the job, Fortune has learned."

Barron's is optimistic: " ... Cole's shiny black leather jackets and funky, square-toed shoes remain must-have items for urbane 30-somethings, and the company is launching initiatives, including a new line of mens' sportswear, that promise to get its financial house in order and more than double the stock over the next three years."

The problem is that Kenneth Cole's sales have been pretty flat, and earnings are also on the decline. And with a price-sales ratio of 0.74, it's not cheaper than Liz Claiborne (NYSE: LIZ) is at 0.56, another classic couturier that has watched its share price tank.

One way to try to determine if a stock is really cheap is to ask whether it's a buyout target at the current price: I doubt that Kenneth Cole is. An investment in Kenneth Cole looks like a bet that the company will be able to turn itself around in the most fickle industry on the planet. That sounds more like gambling than investing.

MOST NOTEWORTHY: Kenneth Cole, Tempur Pedic, Biogen Idec, Cubist Pharma and ShoreTel were today's noteworthy initiations:

• B. Riley started shares of Kenneth Cole (NYSE: KCP) with a Neutral rating and $21 target, citing a lack of near-term catalysts and the challenging environment for footwear companies.
  
• William Blair resumed coverage of Tempur Pedic International (NYSE: TPX) with an Outperform rating, and finds the current valuation attractive for long-term investors.
  
• Banc of America assumed coverage of Biogen Idec (NASDAQ: BIIB) with a Neutral rating and $79 target, as they see less than 50% probability of a sale at current prices and expect shares to trade back to pre-announcement levels in the mid-to-high $60s if no sale is made.
  
• Cubist Pharmaceuticals (NASDAQ: CBST) was initiated with a Sector Performer rating at CIBC, citing competitive headwinds.
  
• ShoreTel (NASDAQ: SHOR) was initiated with a Neutral rating at Nollenberger on valuation.

OTHER INITIATIONS:

• UBS initiated CVS Caremark (NYSE: CVS) with a Buy rating and Rite Aid (RAD) and Walgreen (WAG) with Neutral ratings.
  
• Caris initiated Starent Networks (NASDAQ: STAR) with an Average rating and $23 target.

Kenneth Cole Productions (NYSE: KCP) recently announced that it has acquired the Le Tigre brand for $13 million, plus an earn-out that could escalate the value of the deal to as much as $25 million.

Kenneth Cole will gain all intellectual property related to the company. CEO Kenneth Cole said that "We are pleased to add such a strong and internationally respected brand to our portfolio. We believe there is significant upside for the Company, specifically through various licensing opportunities as well as through the introduction of men's, women's and children's footwear."

I agree with him, and the price certainly looks right. Le Tigre was founded in 1977, and was big for awhile, before going out of production in the 1990s. Re-launched in 2003, Le Tigre has made a quick impact. Its products are sold in stores like Nordstrom and Lord & Taylor and, given the brand's status as a household name, there are likely to be numerous licensing opportunities.

I would say that a lot of lesser brands are receiving much higher valuations, and expect that, under the umbrella of a larger company like Kenneth Cole, Le Tigre will shine.