Newish CEO finding a CFO he wants rather than one he inherited. I don’t think it is sinister but I have sympathy for the outgoing CFO |
This is a very unpleasant surprise. |
Wrong board |
This company has had its act together for a considerable time now. That is why the people who purchased shares at less than 35p are so happy! |
After many years this appears to have got its act together. Next 3 years eps forecasts are not bad and margin is excellent imo. The director buy says a lot. |
Director buys £145,050 |
Director buys £145,050 |
Blackrock seems keen on increasing its stake.
Berenberg’s latest share price forecast -135p—-very high.
Time to hold! |
All time high. Trading at 17-18x earnings. Quite high debt. Struggling to see why this is so well liked, is a bid coming? |
What do we think is a fair P/E here?
10x puts shares around 60-65p. |
Trading update next week. |
 Thanks J.F.T.M; it's nice to see that someone else is still on this chat.
Like you, I am confounded by the share price. I am on record as saying, several times, that I believe it should be languishing around 72 pence. But obviously there is some big money interested at the present price. I note that a short time ago today, an off-book sale for 2 million shares went through at 86.5 pence. Indeed, most of today's sales have been off-book and around 86.5. That suggests that someone who thinks the share is good value is buying in.
The explanation may be in the company's longer term potential. It has taken the Board and the Executive team a long time to turn this company around after the mess that was left by the previous majority owners/Board. The pension scheme was a serious liability. But if one digs deep into what Coats actually does, its reputation for quality, its high tech, research-driven options for customers, and its very sharp recent acquisitions, the company is well placed to absolutely dominate the higher quality, higher value end of the threads market. Apparel and footwear are the headline areas, but I have long held the view that it is in performance materials that Coats has a particularly attractive market position, long term. That's why I have hung in for well over a decade.
Anyone who wants more in-depth insights should patiently work through the wealth of information/videos etc that can be accessed via the Coats website.
I see Coats as an innovative, up-to-the-minute, high tech, global manufacturer that really knows its markets and what it is trying to achieve strategically. My partner and each hold several hundred thousand shares. Our current bail out share price is 145 pence. But if the share price hits that level, I might still stay on board for the ride: 200 pence is not an unrealistic expectation within the next decade. |
The share price here continues to confound. It is not cheap, 15x P/E and still carries almost $400M debt. Comparisons were mostly negative year over year yet the share price is at 85p! Why does it deserve to trade at 15x when so many FTSE stocks, even blue chips, are at 4 or 5x? |
I am not sure if anyone else is active on this site.
In the event that there is, we now know from a recent disclosure, that a significant institutional investor, abrdn, has recently been buying Coats shares and that its holding has now gone over 5%. We cannot tell from the disclosure how many shares abrdn bought. Given that I had expected the share price to languish around 72p following the last results announcement, the abrdn move is encouraging. In my view, abrdn is a quite savvy institutional investor. |
Results a surprise. Pre-results trading had prepared me for another gloomy update. Yesterday's share pice probably gone too far ahead of the results. I'd expect the Sp to retreat back to 72 pence. Slight increase in dividend was welcome, but earnings per share haven't really improved. So, around 72 pence for the next three to six months. |
Very nice share price rise today. Finally! |
Nice reaction for holders. Looks like they've hit eps forecasts and a positive outlook. |
In my view, the latest rise in the share price defies any logical explanation. What particularly surprises me is the strength of the buying. I have reviewed, quickly, all the trades reported over the past three days. Those trades indicate very strong buyer support at 78/79 pence per share. So, I intend to hang in fir the ride. |
As soon as I sold out this rose very nicely to 80p...Stock investors should pay me not to buy their holdings!!! lol... |
Alas, no!
Until the trading figures improve, the share price will stagnate around 72p. |
A nice rise after the pension announcement... Might this yet get to 80p?? |
It does not appear to look like a compelling investment ATM and agree - surprised it's not lower down. That may happen next week. |
Awful update.
This should be down 20%+ |
The trading statement was in line with my expectations. Although I had, of course, hoped for signs of some improvement.
Coats is, I fear, a price taker rather than a price setter. The observation that performance materials are languishing because clients are sourcing in-house is a tad ominous. The company has sunk a lot of research into this sector and should be reaping the rewards of its high quality products.
So yes, as T..O..W..S notes above: "it's not as bad as it was, but it's still bad!" |
Not a particularly strong trading statement... "It's not as bad as it was, but it's still bad"... FFS!! |
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