Sotheby’s (BID) Gets Its Catalyst in Mrs. Mellon

The lingering question about Sotheby’s stock (BID) has been whether it can find a catalyst that allows the share price to break the crucial $40 ceiling/floor that has characterized the stock for several years. Yesterday, anticipation of the Mellon sale (or simply the coming week of sales of Contemporary art) has launched the stock. Now let’s see if it can stay there. The p/e on the stock remains a very expensive 22 against historic averages of 15 and little in the way of a transformative strategy. ($40 ceiling/floor illustrated below with a dotted green line.)