Medium to longer term may still be positive,
just highlighting the short term performance. |
EI, thanks for the analysis. It certainly is a stinking blip. And it caught me by surprise. |
manu, if you subtract the growth from the same Q in 2022, apparel revenue is down approx 2% in constant currency, however this takes no account of inflation.
What is the year over year inflation number for apparel ?, it would be 10% plus
would expect, it might be significantly higher than this, so inflation adjusted
that is a fat revenue drop and one having already disregarded Q 2022 revenue growth.
Yes it may be a blip, but it's a striking one. |
While the Q1 trading figures were disappointing, the market has overreacted, in my view.The Coats share price will flatten out quite quickly, probably a few pence above the 66p price at which a favoured few were able to buy shares when the company raised extra capital a few months back. I do not expect Coats to be subjected to a takeover offer. Sales and profits will grow year on year, not always evenly. Dividends will rise over time. And those of us who hang in there will be quietly pleased we did so.
The fundamentals are very sound. Fairly quickly, Q1 2023 will be seen as nothing but a blip. |
OK I just remember a director buy you announced before an RNS had even been released by LSE.
FWIW I have also seen Coats as a takeover target but they seem more intent on taking over others, at least for now. |
That's very much not the case!.
I saw FY consensus forecasts easing back
so was a little cautious and as mentioned
they have geared up the balance sheet so
the market wants confirmation those acquisitions are performing.
One of the very first companies I had an investment in (30 years ago) was acquired by COA, so have always taken an interest.
I did not expect the recent move over 80 pence and had subsequently sold 10-12% before this level - did not read that too well.
It may still work out very nicely here on medium term view,
should have a clearer idea on the H1.
It looks a pretty fat % revenue decline so they are clearly expecting a bounce back in trading. I'm often too cautious btw, only fair to say. |
EI you seem to have a direct feed into the business and BOD.
What's going on here?
Director buys, institutions buying en masse and then this update?
P/E 11-12 |
Business is slowing up. Sign of the times. People and companies are reducing their spending as costs rise. Inevitable. |
I don't like that statement fwiw as mentioned on the SHA board earlier and will wait to see more detail on the H1 before considering buying back in.
Luck to holders. |
Not happy with that update. Market has tanked the share price
Another expensive acquisition gone wrong? |
Living on the other side of the world to most folk on this chat site, I don't pretend to be an expert on interpreting London Stock Exchange trades. However, the first few hours today have seen some massive trades off-book at very good prices in the 77.50p to 78.00p range. Someone or some people are pouring a lot of money into Coats shares as I type. One can only infer that some very smart money has some big expectations with respect to 1st Quarter trading results. I suspect that before I call it a night, Coats's share price will have moved past yesterday's close. Indeed, it is almost there.
Enjoy the ride! |
EI, Glad you are still there.I suspect that the 73p/74p window won't stay open long, so good that you topped up again. Share price probably going to wobble around a bit until the AGM and 1st Q trading report. I note that the largest shareholder, Liontrust Asset Management, recently lifted its holdings. Just watching and waiting for the dividend. My currency is down vis-a-vis UK, so that's a plus. |
manu, COA moves around a bit as we know!, lower levels may be available depending on the next update. |
Tempted to buy back in but will wait for the may update. |
Anyone looking for cheap Coats shares should jump in now. |
 Coats share price proved to be very resilient yesterday, dropping only 0.64% compared to the FTSE (-2.58%) and the FTSE 250 (-2.75%). Furthermore, there were two significant moments when large trades took place at much higher prices than the closing price, especially around 10.30 am. Clearly, there is some smart money out there that believes Coats to be a good buy at 78+p.
It looks like European markets, including London, were oversold on Monday, 13 March.
As the day progressed, stock prices held up well in the USA. I'm typing this contribution just before 4.00pm. The Dow has dropped only -0.28%; the S&P 500 less (-0.15%); while the NASDAQ is up 0.45%. There has also been chatter in the USA that the Federal Reserve may pause on anticipated interest rate rises.
Early morning trading in Asia-Pacific also suggests that European markets were oversold. In New Zealand, the NZ50 has dropped -0.80%. Australia's S&P/ASX200 dropped sharply on opening, but at midday was clawing back some of that dip. In Japan the Nikkei 225 index has fallen by -2.25%, but now appears to have stabilised.
If Asian-Pacific stocks continue to claw back some of those early losses, we will probably see some clawback in Europe on Tuesday.
If that suspicion proves to be correct, Coats is likely to again break through 78p on Tuesday and, perhaps, even 79p. |
Just read an newly emailed, Director/PDMR Shareholding notice. Jacqueline Callaway, Coats Chief Financial Officer, bought 63,773 shares at 77p. Once again, nice to see an insider buying shares at top dollar. |
Thanks EI and j.f.t.m.
I was going to wait until after Monday and Tuesday’s trading.
The results were better than I had expected.
*The strategic expansion of the footwear investment is reaping quick rewards.
*I note the steady increase in both market share and margins as Coats exits hisorically high volume, low value production.
*I still believe that we will see some quite significant growth in performance materials over the medium- to longer-term.
*Really pleased that an end to the pension overhang is now in sight.
*Appreciate the dividend boost.
*Note that the CEO has increased his shareholding: an encouraging vote of confidence.
*Thought that some investors got a bit carried away on 2 March; the share price got ahead of itself.
*I still think share price will hover around 75p until mid-year results; they may see share price move closer to 80p.
*Will be surprised if share price goes over 100p before mid- or FY results 2025.
See no prospect of a takeover bid.
First, a very high percentage of shares are in institutional hands.
Second, most seem to be index linked investments with no incentive o make a quick buck, should it be offered.
Third, at what price would we sell, given some of us have hung in for a long time? I won’t voluntarily exit this side of 155pence as I see too much upside from just hanging in.
I’m looking forward to US 5 cents a share in annual dividends before my kids inherit the shares. |
Raised Dividend.
P/E 10
Disappointing drop back today but was up 8% yesterday.
Takeover target IMO |
No comments on results folks?.
Read through the presentation, still to watch the conference call. |
It looks like the expectation of positive annual results are now baked into the share price. While I think Coats will trade in the 70p to 75p range until the 1st half 2023 results, I am still of the view that investors continue to underestimate this company's future, positive earnings/profit trajectory. In my view, even at 73p COATS is still a good buy. |
Results shortly, share price right up against a 12 month high - break through or fall back.. |
Should have bought a small amount last week on that dip!, but still watching. |
That's good, EI. Happy New Year.
Share markets can make idiots of us all. But, yesterday's only took about three hours to blast my confidence out of the water. Hope you and some of the others on this chat site took the chance to get back into Coats at a good price.
The only saving grace for me was that the British Pound moved upwards against my own country's currency. That mitigated the damage. I think better sit on my hands for now and avoid any posts on this site until we see the full year results. |
HI Manu, I'm still around!. |
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