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$11.62 0.53 (4.78%)
10/10/2008 4:07 PM

Sotheby's (BID)

CAPS Rating:
*****

The Company through its Subsidiary engages in art auction, private sales and art-related financing activities.

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Recs

5

Avatar Tainerman (59.42) Submitted: 6/09/08 10:31 AM : Outperform Start Price: $27.38 BID Score: -22.08

PE of 9.7? Are you kidding me? With their growth rates and effective duopoly?

With all the wealth building going on, especially in China and elsewhere overseas, there will be LOTS of new bajillionairs. And, no-one knows how to spend money on crap they do not need than new money. Old money knows how to keep it. New money knows how to spend it.

Expect big growth on top of serious undervaluation.

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Avatar Phoenix07 (63.91) Submitted: 7/05/08 12:05 AM

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I couldn't agree more on valuation...attractive but, I just don't see a catalyst for a turn. Real estate is still in a tailspin and the only answer to inflation may be a rate hike which is going to further hurt real estate values (read BID commissions).

Couple that with the realization that regardless how rich you are, if you are watching your investments lose value, you are probably at least a little more reluctant to pull the tigger on a discretionary luxury (read art, antiques, cars, boats, planes, collectables, & real estate).

Then again, I'm not in the target tax bracket so I may be thinking too rationally.

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Avatar Tainerman (59.42) Submitted: 7/09/08 3:50 PM

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Phoenix,

Thanks for the reply. My take is that the growth catalyst is overseas, not in the US.

Regardless, cheap is cheap. I'm not patient enough or good enough to know when it will turn. I figure if I just buy cheap and have a plausible growth scenario, the stock price will take care of itself.

Fool on.

Chris

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