Today, shares of Tommy Hilfiger
Fool contributor Jennifer Schonberger commented earlier this month on the idea that Tommy Hilfiger planned to auction itself off. Among the elements at work are the company's flagging popularity here in the States, although Jennifer pointed out that the brand shows potential in Europe.
Investors may be excited by the rumors, but I've got to voice my doubts. After all, the source for the news article was Women's Wear Daily, which was the recent source of whispers that Urban Outfitters
There's also the question of why Wal-Mart would consider such an acquisition. Maybe it thinks it would do well to acquire a brand that has a whole lot of name recognition to better compete with arch-rival Target
"Buy on the rumor, sell on the news" happens quite frequently in the stock market, but that doesn't mean that savvy investors should jump on such hearsay. After all, rumors may make good conversation pieces, but they're not logical investment theses. Investors who don't heed the advice of not believing everything they hear risk being left holding the bag.
For related Foolish content, please see the following stories:
- Revisit Hilfiger's bid on value.
- Check out the August rumors that Urban Outfitters might court Jill.
- Early in the summer, one Fool contributor wondered whether Tommy could turn around.
Alyce Lomax does not own shares of any of the companies mentioned.