Archive for the ‘diamond’ Category

Diamond Rings and Stocks

April 6, 2007

While researching on diamonds for, 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!