Helix Investment Research
Long only, special situations, contrarian, growth

Tumi Holdings: Long-Term Upside As Growth Continues And Takeover Potential Increases

Shares of Tumi Holdings (NYSE:TUMI), one of the world's premier luxury luggage and accessory companies plunged after reporting what many construed as a disappointing 2nd quarter, as well as cuts to the company's full-year forecast. We, however, bought shares on the back of these results, for we believe that this quarter, and indeed 2013, should not, on its own, be seen as a comment on Tumi's long-term potential. The company is already noting a rebound in Q3, and we see long-term upside as Tumi's growth continues, and the company attracts takeover interest from larger luxury companies (more on this after a discussion of Tumi's fundamentals). We see upside potential of at least 15%, based on a return to

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