I have mentioned Tumi several times as one of the major competitors of Piquadro in my small “series” about Piquadro.
Now it looks like that the Tumi IPO is finally happening . According to Bloomberg, they want to IPO on April 19th, with a quite optimistic valuation:
Demand for luxury goods is helping Doughty Hanson reduce its stake in Tumi, which it bought for $276 million eight years ago, longer than buyout firms typically hold investments. Tumi, whose backpacks retail for up to $595, is seeking a valuation of as much as 3.5 times 2011 sales, compared with the median of 0.6 times for a basket of peers, according to data compiled by Bloomberg.
I guess they are using P/S as a benchmark, because profits seem to be quite slim:
The luggage maker’s sales increased 31 percent to $330 million last year, while net income surged to $16.6 million from $104,000 in the same period, according to today’s filing. The company turned a profit for the first time in 2010 since at least 2007, the filing shows.
It is still amazing how the “pump and dump” strategy of those PE houses still work.
If we compare this to Piquadro, with multiples of 1.2 P/S and a P/E of 10, one can clearly see the impact of Anglo Saxon “financial magic”.
Piquadro itself seems to be reaching my threshold of 1.50 EUR again:
Below 1.50 EUR I will increase Piquadro to a half position (2.5%) of the portfolio, however in parallel I will increase the FTSE MIB hedge accordingly to hedge out my increasing Italian exposure.
As mentioned yesterday, I sold my full Autostrada position at yesterday’s VWAP of 6.34 EUR per share, resulting in a loss of -7,88%. I will revisit Autostrada and especially SIAS, the operating subisidiary, once the cpaital increase is underway. Looking at EMAK and Unicredit, this could provide a more interesting entry point and compensating for the risk of unexpected transactions…..
Since yesterday, Piquadro trades below 1,50 EUR, which was my threshold for additional purchases. However, as I am currently much more pesimistic about China I will for the time being not purchase more Piquadro shares.
Positives were the turnaround in the Health foods segment, whereas the rest of the business slightly contracted. The “EHEC scare” was most likely contributing significantly to this decline.
What I don’t really like are the debt financed acquisitions. However the guidance for 2012 (7-8 cents a share) still leaves the company in the “dirt cheap” category.
First a quick look at the stock price: