Rare Book Monthly

Articles - June - 2010 Issue

Sotheby's Briefly the Most Valuable Company on Earth

Sothebychart

Sotheby's closing chart for May 6 showed a high price of $100,000 per share.


By Michael Stillman

The venerable auction house of Sotheby's, which began its life as an auctioneer of books, has been a successful business for centuries. Of course, books now constitute a small part of what is offered, but Sotheby's remains a major force in the field. This past year, Sotheby's has been a particularly good to investors. Its stock price has tripled in the last year, from a low of $10 to $30+.

However, sometimes news is a bit too good to be true, even for a strong company such as Sotheby's. On May 6, the stock market went into a chaotic freefall. Almost a month later, no one really knows why. In a matter of minutes, the Dow Jones average dropped almost 1,000 points, only to regain most of its losses a few minutes later. Charts for several reputable companies showed their stocks trading temporarily for huge losses. Intraday trades at losses greater than 60% were cancelled. However, some substantial companies showed their stocks had dipped as low as a penny, though it's doubtful anyone would have made such a trade. Computerized trading can wreak havoc on orderly markets.

Less known is that a few stocks experienced the exact opposite on that strange day. Enter Sotheby's. The stock opened at $34.61, and dropped as low as $27.85 intraday. However, somewhere along the way, the stock price reached an astronomical high (click the thumbnail image above left to see its daily chart for May 6). At its high point, Sotheby's supposedly reached a price of $100,000 per share. $100,000? At that moment, it was the most valuable company on earth. It dwarfed giants like Microsoft, Google, even Exxon. Heck, its value dwarfed the value of all of the major oil companies combined. Its price would have valued the company at $6.7 trillion, a figure higher than any monetary amount save for the U.S. national debt.

Alas, when things are too good to be true, they are too good to be true. After reaching $100,000, a price it is hard to imagine anyone actually paid, the stock settled back to $33 per share at the day's close. Sotheby's investors who purchased a year ago will again have to be content with a return of 200%, rather than one million percent. Easy come, easy go.

Rare Book Monthly

  • <b>Swann Auction Galleries Mar 8:<br>Early Printed, Medical, Scientific & Travel Books</b>
    <b>Swann Auction Galleries Mar 8:</b> Caius Julius Hyginus, <i>Poeticon Astronomicon,</i> first illustrated edition, Venice, 1482. $15,000 to $20,000.
    <b>Swann Auction Galleries Mar 8:</b> Giovanni Botero, <i>Le Relationi Universali... divise in Sette Parti</i>, Venice, 1618. $3,000 to $5,000.
    <b>Swann Auction Galleries Mar 8:</b> <i>L'Escole des Filles</i>, likely third edition of the first work of pornographic fiction in French, 1676. $8,000 to $12,000.
    <b>Swann Auction Galleries Mar 8:<br>Early Printed, Medical, Scientific & Travel Books</b>
    <b>Swann Auction Galleries Mar 8:</b> Illuminated Book of Hours in Latin on vellum, Flanders, early 16th century. $6,000 to $9,000.
    <b>Swann Auction Galleries Mar 8:</b> Johannes Regiomontanus, <i>Calendarium,</i> Venice, 1485. $8,000 to $12,000.
    <b>Swann Auction Galleries Mar 8:</b> Pedro de Medina, <i>Libro d[e] gra[n]dezas y cosas memorables de España,</i> Alcalá de Henares, 1566. $3,000 to $5,000.
    <b>Swann Auction Galleries Mar 8:<br>Early Printed, Medical, Scientific & Travel Books</b>
    <b>Swann Auction Galleries Mar 8:</b><br>Luis de Lucena, <i>Arte de Ajedres,</i> Salamanca, circa 1496-97. $10,000 to $15,000.
    <b>Swann Auction Galleries Mar 8:</b> Andrés Serrano, <i>Los Siete Principes de los Ángeles, válidos de Rey del Cielo,</i> Spain, 1707. $800 to $1,200.
    <b>Swann Auction Galleries Mar 8:</b> Johannes de Sacrobosco, <i>Sphaera mundi,</i> first illustrated edition, Venice, 1478. $15,000 to $20,000.
  • <b>Bonhams: Fine Books and Manuscripts. March 9, 2018</b>
    <b>Bonhams, Mar. 9:</b> BEETHOVEN, LUDWIG VAN. Autograph Manuscript sketch-leaf part of the score of the Scottish Songs, "Sunset" Op. 108 no 2. [Vienna, February 1818]. Inscribed by Alexander Wheelock Thayer. $80,000 to $120,000
    <b>Bonhams, Mar. 9:</b> Violin belonging to Albert Einstein, presented to him by Oscar H. Steger, 1933. $100,000 to $150,000
    <b>Bonhams, Mar. 9:</b> EINSTEIN, ALBERT. Autograph Letter Signed ("Papa") to his son Hans Albert, discussing his involvement with the atomic bomb, September 2, 1945. $100,000 to $150,000
    <b>Bonhams: Fine Books and Manuscripts. March 9, 2018</b>
    <b>Bonhams, Mar. 9:</b> HAMILTON, ALEXANDER. Autograph Letter Signed, to Baron von Steuben, with extensive notes of Von Steuben's aide Benjamin Walker, June 12, 1780. $10,000 to $15,000
    <b>Bonhams, Mar. 9:</b> NEWTON, ISAAC. Autograph Manuscript in Latin, being detailed instructions on making the philosopher's stone. 8 pp. 1790s. $200,000 to 300,000
    <b>Bonhams, Mar. 9:</b> 1869 Inauguration Bible of President Ulysses S. Grant. $80,000 to $120,000
  • <b>Leland Little: Important Spring Auction. March 3, 2018</b>
    <b>Leland Little, Mar. 3:</b> Copper Printing Plate for "Marshall's Household Engraving of Washington." $500 to $1000
    <b>Leland Little, Mar. 3:</b> Important Documentary Painting Showing Baseball Great Ty Cobb in Cuba. $1,000 to $2,000
    <b>Leland Little, Mar. 3:</b> <i>Alcoholics Anonymous Comes of Age</i>, Inscribed by Bill Wilson. $500 to $1,000
    <b>Leland Little: Important Spring Auction. March 3, 2018</b>
    <b>Leland Little, Mar. 3:</b> Joan Miró (Spanish, 1893-1983), <i>Prise à l'hameçon.</i> $3,000 to $6,000
    <b>Leland Little, Mar. 3:</b> Maurice Dufrène (French, 1876-1955), <i>Rayon des Soieries</i>. $400 to $800
    <b>Leland Little, Mar. 3:</b> William Pope.L (American, b. 1955), <i>Intimacy Project</i>. $2,000 to $4,000
  • <b>Dominic Winter, March 9:</b> Collection of 131 Herbert Ponting gelatin silver contact prints of Antartica, £6000-8000
    <b>Dominic Winter, March 9:</b> One of several lots of Henri Cartier-Bresson gelatin silver prints, £200-300
    <b>Dominic Winter, March 9:</b> Vintage gelatin silver print of Diego Rivera by Leonard McCombe, £300-500
    <b>Dominic Winter, March 9:</b> Albumen print portrait by Julia Margaret Cameron of Sir John Herschel (April, 1867), £30,000-50,000
    <b>Dominic Winter, March 9:</b> Albumen print by Julia Margaret Cameron, Love, 1864 (from the Norman album), £1000-1500
    <b>Dominic Winter, March 9:</b> Albumen print by Lewis Carroll of Twyford School Eleven (Summer Term, 1859), £1000-1500
    <b>Dominic Winter, March 9:</b> Albumen print portrait by Lewis Carroll of Xie Kitchin as 'Dane' (Oxford, 1873), £500-800
    <b>Dominic Winter, March 9:</b> Calotype print (c1845) by Hill & Adamson of Lady Elizabeth (Rigby) Eastlake, £3000-4000
    <b>Dominic Winter, March 9:</b> Group of 12 waxed paper negatives of Scottish scenes by Thomas Keith, mid-1850s, £3000-5000
    <b>Dominic Winter, March 9:</b> One of 15 lots of Roger Fenton salt prints of his work in the Crimea, mid-1850s, £400-600
    <b>Dominic Winter, March 9:</b> Quarter plate ambrotype (c.1860s) with ethnographic portrait of a woman seated at a table, £400-600
    <b>Dominic Winter, March 9:</b> Rare whole plate thermoplastic union case of the Landing of Columbus (c.1858),part of the John Hannavy collection, £1500-2000
  • <b>19th Century Shop:</b> Charles Darwin on sexuality and the transmission of hereditary characteristics: Autograph Letter Signed to Lawson Tait. Down, 17 January [1877].
    <b>19th Century Shop:</b> MILTON, JOHN. <i>Paradise Lost. A Poem written in ten books.</i> London: 1667. A very rare example with the contemporary binding untouched and with a 1667 title page.
    <b>19th Century Shop:</b> Hamilton secures the ratification of the Constitution: <i>The Debates and Proceedings of the Convention of the State of New-York, assembled at Poughkeespsie, on the 17th June, 1788.</i>
    <b>19th Century Shop:</b> The social contract “Man is born free, and everywhere he is in chains”: ROUSSEAU, JEAN-JACQUES. <i>Principes du Droit Politique [Du Contract Social]</i>. Amsterdam: Michel Rey, 1762
    <b>19th Century Shop:</b> “The first English textbook on geometrical land-measurement and surveying”: BENESE, RICHARD. <i>This Boke Sheweth the Maner of Measurynge All Maner of Lande…</i>

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