Its time to applaud the bid for BID (ticker symbol for SOTHEBYs the only publicly traded auction house in US). Its interesting to note the price action of this stock over last week. Down from above 50 to almost 30 -big OUCH! A single botched auction of Impressionist art sent this stock crashing like it was the end of the art world. Maybe there were no other auction houses that they could sell so they kept hammering BID.
If JCPenny reports lower than expected sales, they hammer JCPenny but then they move on and hammer Target and Macys and so on... each takin some part of the brunt. In case of a slowdown in Sothebys numbers they had only one stock...to hammer. So last week there were no bids for BID and the price went wayyyy down.
I, for one, do not understand what makes a piece of art sell for millions of dollars... but I do understand that the value of art lies in the eyes of the stinking rich beholder. And economic downturn or not, the stinking rich will still bid for art - a collapse in the stock price of BID as much as it did was unwarranted. Once the dust settled and I watched BID all week... I picked up some at 35 yesterday.
Woke up this morning to see its up to 38 already in pre-market action. A contemporary and post-war art auction on Wednesday broke records... and far exceeded the sales estimate.
Tobias Meyer, Sotheby's head of contemporary art, said the results bore out "the high-quality hunger we're experiencing from a completely global community." And fears the weak dollar would deter U.S. buyers, the traditional collectors of contemporary art, proved unfounded, with American buyers comprising the majority.
One would think turmoil in financial markets in recent months would curb the enthusiasm in bidding for art... but so far today's numbers for SOTHEBY's saved the sentiment.
A sigh of relief in the art world... and in the market- what are they going to buy. BID, BID and BID as theres no other auction house to buy. The pumping up will be as fast and furious as the dumping was... so we hold onto BID with a target of mid 40s.
Todays blog is dedicated to art lovers... hope my art lover friends are reading and appreciate that I dont understand art but I do understand when its time to buy art stocks. Lets go for BID... while the rest of the market is undecided.
While I am here lets check our positions. Orders to sell COH and JWN and Citigroup at 36 got filled this week. Am looking for a pullback in Citigroup to get back in as the party has just begun in financial stocks. Maybe if it drops to 33 I am a buyer again. BRCM broke under 30 and I am adding more at 28.75. No bad news... just a semi conductor sluggishness... and AMAT's light estimates going forward. It a technical move for BRCM to the lows... and we may start moving higher soon
as technlogy stocks pick up again.
Meanwhile... lets rejoice for BID. Going, going, gone.... 37... do I see 38... yup... 40 comin up... whew...
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