Sell Tiffany, Buy Coach

Shares of jewelry and giftware retailer Tiffany & Co. (TIF) have bounced nicely since bottoming below $50 in June 2012. TIF's valuation was very cheap then. It was offered last spring at less than 14x trailing earnings along with a 2.3% yield.

But Tuesday's close of $71.01 no longer represents that kind of value. The stock is up $15.15 per share (27.1%) since late December. The dramatic rise is puzzling as 2012 saw profits drop by 9.9% from the previous year. Tiffany's three previous sojourns to multiples north of 20 each ended badly. Bargain hunters have benefited by entering this trade on pullbacks. Buy-and-hold types have nothing but dividends to show over the past 23 months....145 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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