Luxury Shotgun Maker’s Stock in Purdey Good Shape. But Not THAT Good.

Barrons reckons the stock in the Swiss holding company that owns venerable English shotgun maker Purdey is set to double. “Geneva-based Compagnie Financière Richemont (ticker: CFR.Switzerland) is a major player in the global luxury business and, like its two bigger European peers — LVMH Moët Hennessy Louis Vuitton (LVMH.France) and PPR (PP.France) — it suffered deeply in the global economic slump. Now, however, the luxury sector is coming back, and the anticipation already has boosted Richemont’s stock from about 14 Swiss francs a year ago.” My ticker symbol for this story: WTF. I reckon someone is trying to kite this stock, big time. A week ago, The Sunday Times was telling readers to invest £100,000 in a Purdey. Truth be told, Hulk Hogan has a better chance of a comeback in the next year than the luxury sector.

The market is flooded with “pre-owned” luxury goods: fine wines, classic Ferraris and vintage shotguns. Also, Purdey can only make so many Purdeys. To wit: “Today a bespoke Purdey can set you back £70,000 or more and take two years to make,” The Telegraph reports (far more sensibly). “Vintage buyers get this craftsmanship for a fraction of the price.”

Bottom line: invest in a used Purdey, not the company.

Oh, and the company’s Facebook page (317 fans) tells that Purdey’s discounting their brand extensions like crazy, offering “Up to 75% off RRP for example cashmere pullovers £95, wool tweed sports jackets £125, silk ties £20, three-quarter length leather jackets £295.”

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