Return the Bag; Raise Cash
Coach, Inc. engages in the design, marketing, and distribution of handbags, accessories, wearables, footwear, jewelry, sunwear, travel bags, watches, and fragrances for women and men in the United States and internationally.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'COH'" symbolprices="27" div_align="right"]
In January 2013 we bought a full position in COH at $51.25. It’s time to return the handbag. The earnings outlook has worsened and we prefer to use our money for a better investment. Though we think this is till a good company, we hesitate to ride out a fashion war between Michael Kors and Coach.
Total return on this trade +2.9% since we held the position.
EXIT COACH AT MARKET (COH, $51.77) FULL POSITION
MKT CAP: $USD 14.5B POSITION SIZE: FULL (5.0%) P/E: 13.8X DIV: $1.35 (2.6%) P/E/G: 1.19X Debt: Nil ($1B Cash) RETURN ON CAPITAL: 74.4% EARNINGS YIELD: 11.2 5 YR EPS Growth rate: 11.6% CURRENT EPS: $3.74 2014 EST. EPS: $3.47 2015 EST. EPS: $3.85
