Sotheby's (BID) says rich still buying but not their shares

Sotheby's (NYSE:BID) shares are down 6% and are close to their 52-week low, now trading around $25.  The problem with yesterday's earnins call was that they expect a stronger third quarter but Sotheb's didn't make a specific forecast. So what if you beat the Street with your Q2 revenue, what do you expect to happen tomorrow?

There's a reason why BID's Short Float is at 27%, Wall Street just can't see things getting better, even for the rich.

Bill Ruprecht, president and chief executive officer said sales in the fall, including works by artist Damien Hirst, and strong results from sales in July, have caused the company to expected the third quarter will be strong.

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The company's Old Masters sales in London brought in $117.3 million, above the pre-sale estimate of $105.5 million, and 32 percent above the previous year's total.

The sale of more than 200 new works by Hirst is expected to bring in more than $130 million.

Analysts predict third quarter revenue of $118.3 million and a loss of 17 cents per share, according to a poll by Thomson Financial.

The company lost 33 cents a share in the third quarter in 2007 and posted revenue of $85 million.

Sotheby's has previously said third quarters and first quarters typically post losses because of the seasonal nature of the art auction market.

The Masters say wait for a new 52-week low, then make a decision about BID.