Tiffany & Co. (NYSE: TIF) is
engaged in the design, manufacture, and retailing of fine jewelry, timepieces, sterling silverware, china, crystal, stationery, fragrances and personal accessories. The firm sells its goods exclusively through some 150 stores worldwide, a Web site and catalogs.
The company pleased investors earlier in the week, when it reported Q4 EPS of $1.27 and revenues of $1.05 billion. Analysts had been expecting $1.21 and $1.05 billion. Management also guided FY09 EPS to $2.75-$2.85 ($2.49 consensus) and FY09 revenues to about $3.23 billion ($3.18B consensus). Cowan and JMP Securities subsequently issued favorable comments about the company and Trian Fund Management revealed it had boosted its stake in the stock from 7.9% (1/16) to 8.44%.
The shares
popped into a bullish "pennant" consolidation pattern on the news. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the issue with four "strong buys", two "buys" and nine "holds". Analysts see a 13% growth rate, through the next year. The TIF P/E ratio (18.03), Price to Sales ratio (2.01), Price to Book ratio (3.61), Operating Margin (18.05%), Return on Assets (11.49%) and Return on Investment (14.01%) compare favorably with industry, sector and S&P 500 averages. About 90% of the outstanding shares are held by institutional investors. The stock is one of those used to calculate the S&P 500 Index. Over the past fifty-two weeks, it has traded between $32.84 and $57.34. A stop-loss of $37.95 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.
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Reader Comments (Page 1 of 1)
3-27-2008 @ 12:09PM
Sheldon L said...
Good call ;-)
Chasing Value: Tiffany is looking more polished
http://www.bloggingstocks.com/2008/03/26/chasing-value-tiffanys-looking-more-polished/
Serious Money: Pondering: Home Depot, Tiffany & Wells Fargo
http://www.bloggingstocks.com/2008/02/22/serious-money-pondering-home-depot-tiffany-and-wells-fargo/
TIF only has 170 stores world wide and has room to grow. I beleive there is also a possibility that the firm could be taken private, or acquired based on its current capitalization of $5.7B.