The Democrats have nearly wrapped up their national convention making history by nominating Barack Obama the first African-American, or person of any color for that matter, to lead a major party in pursuit of the presidency. Tonight they put a big bow on the whole affair and start the next leg of the race.Speaking of big bows it might be in order for Barack to be giving thank-you gifts to the women in his life, Michelle and Hillary -- a little blue box might be just the 'ticket'. In her daily Before the Bell post my colleague Melly Alazraki reported about Tiffany's super quarter:
- U.S. jeweler Tiffany & Co (NYSE: TIF) posted double the quarterly profit from a year ago on Thursday, benefiting from strong international sales and solid tourist spending at its New York flagship store. Net profit was $80.8 million, or 63 cents per share, in its fiscal second quarter, up from $40.5 million, or 29 cents per share a year earlier, and beating estimates of 55 cents per share. Revenue grew 11%. Tiffany also raised its 2008 profit outlook on strong sales in Europe and Asia and expected improvement in the U.S.
After suggesting investors keep on eye on TIF, in April we bought in at $36. I would be very surprised to ever see that number again and I continue to support the value investing style of 'my pal Warren' and another investing star that does not get as much credit: Ken Heebner, America's Hottest Investor, although this is changing.
At this point I think it is anybody's guess as to how high this stock can rise in the near term. In the long term, I still think it is a market beater. TIF does pay a 1.7% dividend yield, which I like, but I tend not to buy when things are heated up as they are today.
Obama and Tiffany seemed to be all a glow at the same time. Next up: McCain picks his running mate, and if he can find as much value as investors did in Tiffany & Co. this year then he may do well also.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I currently own shares of TIF.
Twitter finally reveals revenue ambition, wants to be Google -- but not yet
Google says: Chrome for Christmas
Why is gold marching higher? Ask the central bankers
Reader Comments (Page 1 of 1)
8-28-2008 @ 2:04PM
chuck said...
What does Barack have to do with tiffany again? I read the article but didn't connect the two.
8-28-2008 @ 2:00PM
Sheldon L said...
Chuck, These were the positive headlines I woke up to in business and politics -- during a time of financial and political stress.