CNBC's Gary Kaminsky Says Wait To Step Into Ralph Lauren (RL)

CNBC contributing editor and former Neuberger Berman money manager Gary Kaminsky, posted a piece on Polo Ralph Lauren's (NYSE: RL) massive secondary offering of shares. Kaminsky spoke about the deal on CNBC's Strategy Session today as well. RL founder and CEO Ralph Lauren is divesting nearly a quarter of his stake in the company, around 9 million shares, which are being offered to the public through the secondary offering.

The reason for the sale according to company representatives is to diversify Mr. Lauren's financial holdings. Kaminsky is advising prospective buyers of the secondary offering to wait before jumping into the stock. He wrote, "If he's selling, I'm not buying...huge offerings like these get investors excited. But if you're in this for the long haul, wait for the stock to come in before making a purchase." Kaminsky summed up his outlook on the deal this way - "Few question Mr. Lauren's sense of style. Fewer should attempt to outsmart his sale."

Kaminsky's take is that Mr. Lauren is an opportunistic seller, and feels that current prices make for an attractive exit point for a portion of his ownership stake in the apparel company. In essence, diversification purposes notwithstanding, Lauren likely feels like the shares are fairly valued, if not overvalued, at current levels. You can find Kaminsky's article here.

In the last 10 years, RL has gained 472%, and nearly 55% in the last year alone. During the current trading session, RL has declined 2.12% to $80.70. The company has created tremendous shareholder value in the long term, and may likely continue to do so, but investors should look for a pullback before establishing a position.

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