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

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details