The article, “Italian Mogul Della Valle Boosts His Interest in Saks” came as a shock to me: 1) since I did not know that Saks Inc. was a U.S. retailer and not a foreign-retailer with a U.S. base and 2) that in this recession, there are investors trying to buy up shares of high end (and high risk!) companies. Della Valle comes as an angel investor to the company, since his now 19.05% share of Saks beats the now second largest shareholder Carlos Slim, who came as somewhat as a threat to the growth of Saks Inc.
Buying those shares come as a financial boost to the company as well as a great way to ensure product placement of the two brands Tod’s and Roger Viver, owned by Della Valle. To those with the capital, it may be wise to buy shares in these companies hit by the recession but with the potential to work through it all. Saks has not had a dramatic increase in profits, but has been seeing positive sales monthly for the past few months—a hopeful sign to profit-seeking investors in high end retail and really, any other industry.
By Leya Abebe
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