Two Beaty Stocks Poised to Rally Further
Coty Inc. (COTY) announced that it was buying a majority stake in Kylie Jenner's make-up and skincare business for $600 million today...and I was asked to comment on COTY and the "beauty sector" in general by CNBC.
Miller Tabak does not cover the "beauty" sector, so I could not comment on the fundamental nature of the deal, but I WAS able to comment about how Coty and Estee Lauder (EL) look on the charts. I was joined by John Petrides, a PM at Tocqueville Asset Mgmt...who DID touch on the fundamental picture for this deal...and for the sector as a whole.
You can see the interview which is attached above. In it, I described how both stocks are quite close to key resistance levels, so if they can rally much further from current levels, it will be very bullish for these two stocks. In fact, for COTY, it would signal an important change in their long-term trend......John talked about how this kind of deal could be the wave of the future for the sector.
(BTW, it's interesting to note that the youngest member of the Kardashian/Jenner family actually owns the company...she is not just lending her name for marketing purposes, so she will be making a very tidy profit.)
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