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Ralph Lauren Corporation Message Board

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  • rwcva rwcva Sep 18, 1998 10:46 AM Flag

    "...,hey usarccoman, you like wasting mo

    ...or look at the one has made
    money on this stock holding LONG.

    Look at the 2
    year chart.

    Then look at most any other

    particularly those of


    well, at
    least you won't loose a lot here...
    WON"T MAKE ANY either.

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    • I saw Wall Street Week tonight, the guest on the
      show said
      RL doubled its profits in one year. Hope
      potential buyers
      out there heard as well so that my
      purchase makes more sense.

      Also said growing at a
      rate of 30%. She was very bullish
      on Tommy H., I
      don't own that stock, any info?

      • 1 Reply to lisciano
      • RL's problem is not in its financial performance.
        As you've noted they have produced strong results
        recently. It's out of favor status comes from a few thinks
        (I would argue):

        1.)Cyclicality. If Wall St.
        is expecting a slow down of the economy, sales will
        slow as less money is spent on high ticket fashion and
        home goods.
        2.) They see RL more as a fashion
        stock, as opposed to a brand name which will persist.
        And RL is not as "in" as other vendors presently.
        There's a view that Ralph's time has come and

        Where I think the major mistake being made is this:
        Ralph has always focused on "timeless" and high quality
        designs (note the word focused...all designers pander to
        the trends a little). This timeless theme is in his
        clothes, furniture, other home goods. Focus on this
        "classic" theme will tend to mitigate much of the
        trendiness associated with other fashion type stocks. The
        ability to expand this theme into almost limitless areas
        of goods allows RL to expand their liscencing

        Finally, this stock has not been exactly
        cheap since its IPO. Most of the negative sntiment on
        this board has talked only about the stock
        performance, without any regards to valuation...which gives
        you an idea as to the types of investors they are:
        short term. At these prices, RL is a good buy. For
        those willing to buy and own stocks for long periods,
        5-10 years, I think RL will surpise many on the
        upside. But long term conceptual investing is beyond the
        scope of most investors. If you want a short term 50%
        gain, this is not your stock. If you want a great
        company for the long term, RL is a good stock.

        Good Luck

    • I wouldn't be in a hurry to trash RL at these
      levels. It has quietly been producing excellent financial
      results. If it is not currently popular among Wall
      Streeters, so be it. When they reach the point of having a
      free cash flow yield of 10% when long term bonds are
      trading at 5.2%, inevitably RL will attain a following.

      If and when the Fed cuts short term rates, I expect
      RL to get a major boost, and could easily move to
      30. In the short run, watch for a better than
      expected Holiday season.

97.15-2.10(-2.12%)3:31 PMEDT