GLOBAL luxury goods group Richemont, which boasts brands such as Montblanc, Van Cleef & Arpels and Cartier, dipped below R80 a share momentarily on Thursday before picking up above R80 again.That may be a sign of greater market confidence after it closed at R79.54 earlier in the week.But some analysts believe that Richemont, which has been a consistent market favourite over the years, still has a way to go before it regains the market’s confidence.It has lost 27% of its value so far in 2016.At a price:earnings of 18 it has rerated from the mid-20s in 2015, but even at these levels, it may not offer a compelling buy.Richemont’s share price clearly reflects a changed luxury goods market, with brands in boutique shops not attracting the clientele of the past. The luxury goods group’s diversification into wholesale selling has been volatile at best, with currency fluctuations also playing havoc with results.A rerating will depend on which strategic route the company takes at the fork in...
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