LVMH (Moet Hennessy Louis Vuitton) (LVMUY)

Has owned this in the past. His fear is because the luxury goods space in general is suffering because of the corruption clamp down in China, has left people not wanting to carry around those luxury goods like they used to. However, this is probably the best of the luxury goods companies. If there is one luxury goods company that can navigate through this, it would be this one. At the right price he would be interested, but he doesn’t think we are there right now. Would like it in the $130s before getting interested.

Besides handbags, this also has a co-ownership in champagne and a watch subsidiary. Luxury stocks have struggled over the last 13 months, because historically they are one of the more straightforward ways to participate in Chinese growth. If you are thinking about stocks that would benefit from a lower euro, this would be at the top of the list. There are more direct ways if you want to play in the Chinese consumer story.

(A Top Pick Dec 17/13. Down 5.02%.) The idea was that with the high-end consumer, the company would be able to name their price on articles, our European recovery. Didn’t make any money on this.

(A Top Pick April 9/13. Up 11.89%.) Likes their portfolio of brands. They are all in the major categories, wine/spirits, fragrances, watches and they also do the airport duty-free shops. They really target the upper end consumer, which is pretty recession resilient. Yield of about 5.3%.

(Top Pick Mar 14/13, Up 6.04%) Hoped for more growth. Hurt by slow down in emerging markets. In China they really like the high end brands. They are transitioning to soft leather without their logo. Yield close to 3%. As global economy recovers we will see a return of the high end consumers.

After years of fantastic stock performance, this had a sort of sideways 2013. This stand from fears that gift giving in China will be materially lower as the new leadership seeks to crack down on corruption. The other concern is that their core brand is beginning to become a bit too ubiquitous so it is struggling to carve out its niche. Its watch brands are decent but really aren’t the same peer nor as scalable on margin profitability as some of its competition.

(US Over the Counter.) Has over 60 very identifiable brands. It is hard to believe, but Louis Vuitton is going even more upscale and targeting the ultra wealthy. Feels that the global recovery and the over wealthy are continuing to spend a lot of money.

Paris based luxury goods company. If not the largest, it is one of the largest globally. Two businesses drive this stock. The drinks business, basically champagne in Cognac, as well as the fashion and leather goods business such as handbags, shirts, etc. Those 2 divisions are 75% of earnings before interest and tax. Cognac is a popular gift item in China and a lot of their government officials are being strongly discouraged from giving gifts. Has underperformed so there is probably some catch-up over the next year or 2.

Great story. You have to remember that a fair chunk of the value is Louis Vuitton, not the other parts of the business. These stocks have underperformed lately because of the emerging markets. Thinks that over 50% of their business comes from emerging markets. Relative to its peers, it is in a much better situation as it has a broader brand base. Had a very large expansion plan over the last several years, expanding in the emerging markets area and CapX is slowing down and that should help them. Trading at about 14X earnings so not excessively expensive. Has the potential to go much higher.

The global leader in the luxury brands industry. They are in fashions, leather goods, spirits, jewellery, etc. They do retailing in all the duty-free stores in the big airports. Relatively recession resistant. Well-positioned to meet emerging and developed markets demand. Dividend yield of 2.74%.

Luxury sector is relatively recession resistant. Quickly picks up as things improve. They are in many segments and well represented geographically. It is also a play on emerging markets. Trades in Milan and on the Pink Sheets in New York