Tiffany's Slump Presents Buy Opportunity

The 14% decline in Tiffany's (TIF) over six consecutive days of down days for the stock from July 20th to July 27th is a great opportunity for investors to get in on this name.

Demand for high-end jewelry seems to know no bounds and the decline in TIF was not induced by bad news, rather it was based on the general fear that the US economy is not doing well and the mortgage default issues would have a negative effect on the retailer. But people need to understand that demand for products from retailers like Nordstrom (JWN) and Tiffany (TIF) is relatively inelastic since their customers are high-end consumers.

TIF 1-yr chart:

Comments

[yourfilled:]

As the author of Tricks of the Active Trader, I can state that trying to outguess the consumer is a sucker punch. Rich people did not get that way from over paying. Tiffany may be a buy, but not until it takes out the old high. I can't bottom fish. If there is an ETF I could short with ?Tiffany in it, I am all over it.


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2007 Aug 05 08:35 AM

[flstearns:]

Tiffany is a component of ROB, I think.

2007 Aug 05 10:12 AM

[Greg Pinelli:]

yourfilled...full of what? What evidence do you have that the "consumer" is not buying at Tiffanys? Looks to me very much like the typical correction the equity has gone thru since 2003. Rich people don't bargain shop for status items...they are "markers" for what they have become. Someones spent too many hours in Mervyns.
Also...what does consumer shopping (a fundamental consideration) have to do with "taking out the old high)..strictly a technical consideration..and a very shopworn one at that.
If TIF can be had at 42.00 my guess is there would be a lot of benefit to be had from its very smart recent expansion..or its possible takeover in another luxury consolidation.
By the by..yourfilled would actually short an ETF that had a marginal position in TIF? Must be a brilliant book....

2007 Aug 05 12:39 PM

[yourfilled:]

Yourfilled is a trading term. But you may not know that ....in any case...I like Tiffany Merchandise, just not the stock....I rather own the gold and silver. But we all have opinions....make a fortune and buy me lunch! And you can check out the book, Tricks of the Active Trader.....good luck.

2007 Aug 08 12:18 PM

[Greg Pinelli:]

I've traded more than you've dreamed of...your commentary is third rate..and if its a preview of the book I suggest giiving it away. "Yourfilled"...by the way.... is really a common term meaning your order has been executed. In this case place your for Tiffany order at 42.00 .."I (means of course I'd)...would rather own gold/silver"...at what price..in what form...in what amount???? Physical..ETF....???St... yourself and tell us something.Also..."bott... is a pejorative term used by the gutless to describe a system that requires...at its best...real analysis and courage.
Faisal is still too early...will bounce and then shake out the timid and hopeful.

2007 Aug 12 08:44 PM