Smith & Wesson Holding Corporation (NASDAQ:SWHC) is lightly covered with only four analysts, but they give a median price target of $11.50, for some 20% upside. While Smith & Wesson Holding Corporation (NASDAQ:SWHC) won’t enjoy the 190% EPS growth it had this last year, analysts still predict a 30% five year growth rate.
Diamonds are forever
Bond is so smooth that he rarely has to gift his women, but he does appreciate a fine men’s watch and if he ever settled with one lady, he would surely present her with the signature robin’s egg blue box from Tiffany & Co. (NYSE:TIF) . In “Diamonds Are Forever”, one Bond girl is called Tiffany & Co. (NYSE:TIF) Case. Asked about his diamond expertise, Bond replies, “They cut glass, suggest marriages, and I suppose it has replaced the dog as girl’s best friend.” Bond would certainly know more than that if he owned jeweler Tiffany & Co. (NYSE:TIF).
He’d know it is one of the ultimate aspirational high end plays that is trading at a forward P/E of 19.62 with a 1.70% yield. The company is moving into new emerging markets (including Asia), opening a store in Red Square in Moscow, one of his old stomping grounds.Tiffany & Co. (NYSE:TIF) is becoming more attractive as a takeover target speculation (note: a takeover has been rumored for several years. Louis Vuitton Moet Hennessey and Richemont have been bandied about as possible buyers).
Just as famed “Breakfast at Tiffany & Co. (NYSE:TIF)’s” party girl Holly Golightly found Tiffany & Co. (NYSE:TIF)’s such a “friendly” place, so too do shareholders after a recent 6% bump in yield after a dozen increases in almost as many years.
The company surprised with a bright and shiny Q1 in May of a 9.3% increase in global sales. Simply stunning numbers from Asia added up to an adjusted $0.70 EPS beating analysts’ expected $0.53. Although sales in North America were weak and are expected to remain flat, both Russia and Asia were mentioned on the call as strong growth drivers.
If Bond bought Tiffany, he would keep an eye on strength in world markets, ours and Asia’s specifically, as perceived wealth effect tends to move the stock.
For your eyes only
As Bond memorably says, “In my business you prepare for the unexpected.” Two global aspirational companies with yield take the edge off a harrowing career of derring-do for Bond. A more speculative Smith & Wesson Holding Corporation (NASDAQ:SWHC) appeals to that sense of risk that Bond embodies. These are three names you should think twice before you say Dr. No.
AnnaLisa Kraft has no position in any stocks mentioned. The Motley Fool recommends Diageo plc (NYSE:DEO) (ADR). AnnaLisa is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article If James Bond Bought Stocks originally appeared on Fool.com is written by AnnaLisa Kraft.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
