Sunday, March 27, 2005

Breakfast at Coach's ?

I don't think so. I have mentioned Tiffany (TIF) as a takeover target in a previous post. Barron's latest issue mentions Tiffany as a target, with Coach as the most likely suitor.

I think that will be bad for both Coach and (in the long term) Tiffany.

Given Tiffany's margins and cash flow, the best buyer would be a private equity group, who can squeeze the most value out of it and bring in new product lines and spruce up existing ones.

I own a few Tiffany shares and will remain a buyer at its current price. The dividend and recent insider buying provide additional support.

A similar premium brand takeover target is Saks (SKS). Trading close to book value, this has seen some buying from Carlos Slim, indicating that the stock is a bargain right now. I own a few and will continue buying.


Post a Comment

<< Home