Coach, Inc. (COH) To Sotheby's (BID), Michael Kors Holdings Ltd. (KORS) & Lux-One Stock Watch

  The market for ultra-luxury was a key player in recent years. While companies like Michael Kors Holdings Ltd. (NYSE: KORS) and Coach, Inc. (NYSE: COH) have expanded their product lines and focus on the Asian operations, a plethora of actions former investors have generated more than 130% in two years. A segment that are overlooked by analysts, but the art world tends. There are two main players in the major art auctions - Sothebys (NYSE: BID) and Christie. So you can see the listed how it compares to other stocks luxury option.

Soft art investors were apparently not in the big auction houses since the financial crisis interested because the art market is relatively small. If the market will come back or not is debatable, some analysts say we are a natural turning point, while others are still heat. I tend to agree with the former, as the economy recovers and global ultra-high-net-worth individuals increase their investment. In addition, the rapid rise of Chinese wealthy will continue to stimulate the art market in the coming years.

That said, I love the art world. The auction houses are up to 20% commission on products sold, which can be in the tens of millions of times. The margins are high, the customers are loyal, and the industry is essentially a duopoly. When companies try to meet the criteria listed under the high ditch and plenty of cash from Warren Buffett, the start is a good bet. More importantly, the market seems Sotheby appreciation or almost flat number in the coming year. This seems to be in contradiction with the recent data.

Investing in Art According to a Deloitte report, the assets of the Arts Investment Fund increased by almost 70% last year. This bodes well for big sales this year, as an Impressionist and modern art at Sotheby Sale - one of the biggest of the year. The event is triggered more than 300 million and a profit in the previous year by 30%, according to company management. Is that the trend continued during 2013? It's hard to say, but these auctions earlier this year could be interesting indicators for the other events of the year.

Perhaps the most important number of all is where other luxury shares of Sotheby be. Analyst forecasts, warm (perhaps misguided) as they are shown on P / E of 14.3. Michael Kors Holdings Ltd. (NYSE: KORS) is at about 24 times earnings trade, while Tiffany & Co. (NYSE: TIF) is trading at about 18 times earnings. Of course these are not the same company as a whole, but the luxury segment tends to attract similar assessments.

The company has very little debt and a lot of money. As soon as the last note market success, which put to rest fears could about the art market at large, investors can expect attractive more correction send the price well above the current level.

Of course, be careful. The art market is difficult to predict and may fluctuate violently. If there is a relapse macroeconomic impact on the United States, Europe and Asia, investors are likely to run out.

However, the overall assessment and the growth prospects misleading analysts Sotheby's I think a focus on compelling value for the given interested in the luxury market placement.