Ticker Talk: 1913.HK
1:04 PMI was reading an article the other day that said women don't invest as much as men. They are often better at managing money, but they more often than not, fail to amass any significant investments. It's with that in mind that I've come up with Ticker Talk, a monthly write up about companies or securities traded on the stock market. Instead of saving up to own that new Balenciaga, why not save up and own of a piece of its parent company, PPR, instead? You may think, "I'm only 20-something, there's plenty of time for that later," but there's really not. You will have a greater return (a.k.a. make more money) if you save from 20-30 and let it grow until retirement, as opposed to 30-40 until retirement. Who doesn't want more money? If reading this column gets just one person to start an IRA (Individual Retirement Account) or take an interest in finance, I've met my goal. So check it out and let me know what you think in the comments!!
Photo by Robert S. Donovan |
I have to open this post by stating that I'm biased. Obviously. I think Miuccia Prada can do no wrong. In fact, I regard her as one of my idols; She's a top-notch, business savvy woman with an eye for design. I'm not sure if Prada would have obtained the level of success without someone like Miuccia at the helm. In 1978 Miuccua inherited the business and with her husband, Patrizio Bertelli, has successfully created the powerhouse we know today.
Prada (1913) debuted on the Hong Kong Stock Exchange (SEHK) on June 11, 2011 with a modest Initial Public Offering (IPO) of HK $39.50 (about $5.10 USD). While still largely successful, it did not garner the $2.9 billion it hoped to raise, but approximately $2.1 billion. The Prada S.p.A. company consists of Prada, Miu Miu, and lesser-known shoe maker, Church & Company.
Prada went public at a time when the luxury market was still struggling and on the heels of a less-than-stellar IPO by luggage maker Samsonite. Samsonite's IPO raised only $1.25 billion with shares opening at HK $14.50 ($1.87 USD) and currently trading at HK $16.22 ($2.09 USD). By contrast Prada shares have risen to HK $69.50 ($8.97 USD). Today Prada boasted a 50% rise in net profits over the past 9 months.
Unlike last month's featured stock, Michael Kors (KORS, NYSE) Prada is a true luxury company with a rich heritage and strong reputation to back it up. While both company's sales are driven by leather goods and accessories and have had great successes in the Asian market, Prada relies heavily on the resiliency of the luxury goods market which is often largely unaffected by market trends. The wealthiest can continue to spend as others tighten their belts.
A couple of years ago I purchased my first Prada item, a pair of pink and black sunglasses. Since then I've collected a few more pairs of sunglasses and would eventually love to add a great skirt or classic pair of heels to my collection. I will certainly be watching Prada's performance on the runway, as well as the financial market.
The company is and has remained confident in their ability to continue operating profitably and as long as Miuccia continue's to create fantastic geometric print suits and ornately framed sunglasses and shoes, I believe they will be able to hold their own.
2 comments: