It's been almost three months since Trian Fund Management founding partner Peter May—whose fund is the fourth-largest holder of Tiffany & Co. shares—predicted the price tag of Tiffany’s stock would rally to $100.
Photo By: minxlj
Tiffany Gift Box
This didn't seem completely far-fetched, since shares were trading at around the $70 mark. Tiffany was predicting annual sales growth of 12 to 15 percent.
The company was said to be in "the sweet spot to leverage the strengthening of the U.S. consumer."
That doesn't seem to be working out. Shares are down more than 15 percent since May.
Of course, Tiffany isn't alone in its decline since May. The S&P 500 is down by nearly as much as Tiffany. But this only supports what NetNet explained in July:
Tiffany is a leveraged play on the global economy, which is increasingly skewed to rewarding the well-off. If the economy does well, and the rich keep getting richer, Tiffany does very well. But when the economy gets bad enough that the wealthier segments of the population feel the pinch, it's already too late to shut the barn door."Questions? Comments? Email us atNetNet@cnbc.com
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