Diamond Rings and Stocks

While researching on diamonds for www.diamondave.net, I suddenly realised that if I had bought some TIF call options like 2 months back, I could have been researching on a big purchase instead.

I knew that Tiffany is undervalued and should appreciate to somewhere around $55 in maybe a year’s time but just did not realised it had gone up so fast (from $40 to now $47 in less than 2 months). I am bullish on Tiffany’s recent foray into China, which I consider to be a good long term strategy, and long term is like 2 years – not 2 months.

So I went into LJ International (Nasdaq: JADE) instead. It is a pure China jewelry play with some very aggressive growth and a market cap of less than 10% of Tiffany’s.

JADE however, hovered around the $10 while TIF rallied… *sigh*… well hopefully JADE trade at $12.50 soon so that my JADE JUN 7.50/12.50 bull call spread can hit MAX profit!


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: