Tiffany Down In Afternoon Trading: Buying Opportunity?

According to the AP, the company did extremely well in the first quarter. Net sales increased 22%. Net profit went up over 100% to 50 cents per share. Expectations were set at 36 cents. And here's what could be the best part: same-store sales, according to the press release, on a worldwide, constant-exchange basis, jumped 10%. This metric is very important to retailers because it illustrates how older stores are faring; after all, if the majority of stores that have been open for a while end up being depreciating assets in terms of revenue, what good is the business model?

My problem with Tiffany at the moment is its valuation. No, it can't be called radically expensive, but it just doesn't feel cheap enough given the volatility. Yet, the quarter was so good, wasn't it? It encourages investors to send in a buy order.

I would rather get shares at a higher dividend yield if possible, so if the stock starts to retreat further, you may want to take a look. From a long-term perspective, this is the kind of stock that can be rewarding if you get in at a decent price. And it should be noted that management increased the quarterly payout by 25% earlier in the month, so keep this jewelry expert on a watch list.

Disclosure: I don't own any company mentioned; positions can change without notice.