BRUNELLO CUCINELLI EVEN MORE OVER PRICED :NOW MORE THAN 800 MIL EUR

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As said previosusly , in CUCINELLI IPO the  decision to price it  in the higher part of the fork  has been a good choice for the Corp , not for investors.

CUCINELLI  is a good company but - once more - overpriced
CUCINELLI  Printed the first day ofnegotiation an hefty + 50% which brings his value to more than 800 million Eur

When approaching The wide array of Subsets inside the wider industry of Luxury, investors tend to overlook the figures and happily pay for intangibles that - very often- are just sold not as  they are but waht they would like to be. Or , in other words ,  above their real value. A simple reading of papers and a better knowledge of the Industry - utterly complex and articulated in sub-sub sectors often misunderstood-  would have helped.
in few simple words:
  "YOU HAVE NO IDEA OF WHAT ARE YOU BUYING, BECAUSE NOR YOU NEITHER THE  ADVISORS HAVE THE PALEST IDEA OF THE ENJEUX OF THE INDUSTRY.
SO INVESTOR, DO NOT COMPLAIN TOMORROW  IF YOU'LL SEE YOUR STAKE VANISHING . REMEMBER THAT THE GREAT DEAL HAS BEEN DONE BY THE ISSUER AND  THE ADVISORS. AND YOU ARE, BASICALLY, A DUMB."

POLTRONA FRAU IPO DOCET


CONCLUSION: WHERE IS THE SENSE OF PRICING A BEAUTIFUL BUT VERY SMALL CORPORATION WITH A VERY SOUND FINANCIAL POSITION BUT LITTLE EARNINGS ( BELOW 10% ..) WITH MULTIPLES HIGHER THAN LVMH OR GEOGRAPHICALLY CLOSER, TODS?

I PERFECTLY KNOW THE ANSWER.


Few raw data:2011
NET REVENUES: 246 mIL; 


ebitda 40 (2011)


net net 20 miil (2011) 9 mil (2010) 


pe mULTIPLE: 23 ; 


EV/EBITDA 12.8

DOMESTIC SALES EXPOSURE: > 50% (WEAK!! SHOULD BE AT LEAST 65%)

SOURCE : IPO DOCS.

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BENCHMARKING :(Comparison is -per se- BOLD and not correct for  CUCINELLI is mainly knitwear)


ABSOLUTE LUXURY: HERMES: 25.8 --44.9 ; 


ASPIRATIONAL: LVMH 10.6 -- 21.3; 


OLD NEW: FERRAGAMO 14.6 --32; 


ADVANCED Aspirational: PRADA 16.5 --28.9-- 


TODS: 10.7--19.1. 


AVERAGE 15.6--29.3 -


MEDIAN: 14.6--28.9 






SOURCE:  WALTZ LANNES ELABORATION OF IPO DATA ( CONSISTENTS WITH WALTZ LANNES OWN DATA)