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 11:</b> Dorothea Lange, <i>Migrant Mother (horizontal),</i> silver print, 1936. $20,000 to $30,000.
    <b>Swann Auction Galleries Mar 11:</b> Group of 32 WWII-era identification badges for manufacturing & military-related companies, 1940-50s. $2,000 to $3,000.
    <b>Swann Auction Galleries Mar 11:</b> Julia Margaret Cameron, <i>Alfred, Lord Tennyson,</i> albumen print, 1869. $10,000 to $15,000.
    <b>Swann Auction Galleries Mar 11:</b> Arnold Genthe, <i>Portrait of Theodore Roosevelt,</i> silver print, circa 1908. $1,000 to $1,500.
    <b>Swann Auction Galleries Mar 11:</b> Edward Curtis, <I>Oasis in the Badlands,</I> toned platinum print, 1905. $8,000 to $12,000.
    <b>Swann Auction Galleries Mar 11:</b> Francis Frith, three volumes, approximately 140 photographs, 1860-70s. $10,000 to $15,000.
    <b>Swann Auction Galleries Mar 11:</b> Eugène Atget, <i>20 Photographs,</i> gold-toned silver prints by Berenice Abbott, 1898-1927. $8,000 to $12,000.
    <b>Swann Auction Galleries Mar 11:</b> Neil Leifer, <i>Muhammad Ali,</i> chromogenic print, 1965. $4,000 to $6,000.
    <b>Swann Auction Galleries Mar 11:</b><br>A group of approximately 50 Photomatic selfies of the same man taken over a period of time, 1940s. Estimate $1,500 to $2,500.
  • <b><center>Hindman Auctions<br>Literature from a Private New Orleans Collection<br>March 19, 2021</b>
    <b>Hindman Auctions, Mar. 19:</b> STEINBECK, John (1902-1968). <i>The Pastures of Heaven.</i> New York: Brewer, Warren & Putnam, 1932. $10,000 to $15,000.
    <b>Hindman Auctions, Mar. 19:</b> FITZGERALD, F. Scott (1896-1940). <i>Tender is the Night.</i> New York: Charles Scribner's Sons, 1934. $6,000 to $8,000.
    <b>Hindman Auctions, Mar. 19:</b> STOKER, Bram (1847-1912). <i>Dracula.</i> Westminster: Archibald Constable and Company, 1897. $5,000 to $7,000.
    <b><center>Hindman Auctions<br>Literature from a Private New Orleans Collection<br>March 19, 2021</b>
    <b>Hindman Auctions, Mar. 19:</b> GOLDING, William (1911-1993). <i>Lord of the Flies.</i> London: Faber and Faber, 1954. $4,000 to $6,000.
    <b>Hindman Auctions, Mar. 19:</b> SALINGER, J. D. (1919-2010). The Catcher in the Rye. Boston: Little, Brown and Company, 1951. $4,000 to $6,000.
    <b>Hindman Auctions, Mar. 19:</b> HEMINGWAY, Ernest (1899-1961). <i>The Torrents of Spring.</i> New York: Scribner's, 1926. $3,000 to $4,000.
    <b><center>Hindman Auctions<br>Literature from a Private New Orleans Collection<br>March 19, 2021</b>
    <b>Hindman Auctions, Mar. 19:</b> HUXLEY, Aldous (1894-1963). <i>Brave New World.</i> London: Chatto & Windus, 1932. $3,000 to $4,000.
    <b>Hindman Auctions, Mar. 19:</b> WELLS, H.G. <i>The Time Machine, an Invention.</i> New York: Henry Holt, 1895. $3,000 to $4,000.
    <b>Hindman Auctions, Mar. 19:</b> DAHL, Roald (1916-1990). <i>Charlie and the Chocolate Factory.</i> New York: Alfred A. Knopf, 1964. $2,000 to $3,000.
    <b><center>Hindman Auctions<br>Literature from a Private New Orleans Collection<br>March 19, 2021</b>
    <b>Hindman Auctions, Mar. 19:</b> HERBERT, Frank (1920-1986). Dune. Philadelphia: Chilton Books, 1965. $2,000 to $3,000.
    <b>Hindman Auctions, Mar. 19:</b> KESEY, Ken (1935-2001). <i>One Flew Over the Cuckoo's Nest.</i> New York: The Viking Press, 1962. $2,000 to $3,000.
    <b>Hindman Auctions, Mar. 19:</b> VONNEGUT, Kurt, Jr. (1922-2007). <i>Slaughterhouse-Five or The Children's Crusade.</i> New York: Seymour Lawrence Delacorte Press, 1969. $2,000 to $3,000.
  • <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
    <center><b>California Virtual Book Fair<br>March 4-6, 2021<br>www.abaa.org/vbf</b>
  • <center><b>The Collectors’ Sale<br>March 3, 2021</b>
    <b>Fonsie Mealy, Mar. 3:</b> Verlag, Luzern, Publishers: <i>The Book of Kells,</i> the most precious illuminated manuscript of the early Middle Ages, now reproduced, the FIRST AND ONLY COMPLETE FINE ART FACSIMILE EDITION. €5,000 to €6,000.
    <b>Fonsie Mealy, Mar. 3:</b> Rowling (J.K.) <i>Harry Potter and the Philosophers Stone,</i> 8vo, L. (Bloomsbury) 1997, First Deluxe Edn., Signed by the Author on title page. €4,000 to €5,000.
    <b>Fonsie Mealy, Mar. 3:</b> Gilbert (John T.) Account of Facsimiles of National Manuscripts of Ireland, from the earliest extant specimens to A.D. 719. €2,000 to €3,000.
    <center><b>The Collectors’ Sale<br>March 3, 2021</b>
    <b>Fonsie Mealy, Mar. 3:</b> <i>The Georgian Society Records of Eighteenth-Century Domestic Architecture in Dublin [-Ireland],</i> 5 vols. lg. 4to D. 1909 - 1913. Limited Editions. €1,500 to €2,000.
    <b>Fonsie Mealy, Mar. 3:</b> Yeats (W.B.) <i>The Poems of W.B. Yeats,</i> 2 vols., roy 8vo, L. (MacMillan & Co.) 1949, Limited Edn., No. 185 (of 375 copies). Signed. €1,500 to €2,000.
    <b>Fonsie Mealy, Mar. 3:</b> Crone (John S.)ed. <i>The Irish Book Lover, A Monthly Review of Irish Literature and Bibliography.</i> Vol. I No 1 August 1909 - Vol. XXXII No. 6, September 1957. €1,250 to €2,000.
    <center><b>The Collectors’ Sale<br>March 3, 2021</b>
    <b>Fonsie Mealy, Mar. 3:</b> Yeats (John Butler) <i>An original self-portrait Sketch,</i> Signed and dated April 1919, N[ew] York. €1,200 to €1,500.
    <b>Fonsie Mealy, Mar. 3:</b> Photograph Album. Entitled ''A Souvenir of the Visit to Jeypore Samasthanam of His Excellency the Right Hon'ble Viscount Goschen of Hawkhurst… 14th December 1927''. €1,000 to €1,500.
    <b>Fonsie Mealy, Mar. 3:</b> Pistolesi (Erasmo) <i>Il Vaticano,</i> 8vols. large atlas, folio Rome (Tipografia della Societa..) 1829. €500 to €600.
    <center><b>The Collectors’ Sale<br>March 3, 2021</b>
    <b>Fonsie Mealy, Mar. 3:</b> Chagall (Marc)illus., Legmarie (Jean) comp., <i>The Jerusalem Windows,</i> folio N.Y. (George Braziller) 1962. €400 to €500.
    <b>Fonsie Mealy, Mar. 3:</b> Bullitt (Thos. W.) <i>My Life at Oxmoor,</i> Life on a Farm in Kentucky before the War. Roy 8vo Louisville, Kentucky, 1911. Privately Printed No. 86 of 100 Copies Only. €300 to €400.
    <b>Fonsie Mealy, Mar. 3:</b> Popish Plot: Oates (Titus) <i>The Popes Whore House or The Merchandise of The Whore of Rome,</i> folio L. 1679. First Edn. €100 to €150.

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