Coats Share Discussion Threads

[essentialinvestor] 21/6/2022 12:37

Added a small amount, a bear market is going to take about everything lower.

[blackhorse23] 13/6/2022 00:11

IGR on the move, JP Morgan price target for IGR 500p , selling COA & buying IGR

[our haven] 09/6/2022 13:41

Good volumes today and rising nicely.We are getting back to the pre-pandemic level and I am sure that we will continue to test this level.

[manurere] 08/6/2022 08:33

It is a big conviction position. However, both my partner and I have very good, inflation adjusted superannuation income from an employer scheme. So each of us in a comfortable position whereby we can take long-term positions in equities and not worry too much about periodic hiccups.
My personal preference is to invest in companies that I can understand. I especially favour manufacturing companies that make real things real people want to buy. Coats meets that test. I am especially impressed with the growing range of industrial products. Coats also provides both straightforward accounts and reliable regular updates. In addition, I like the geographical spread of its manufacturing units; that help buffer it from periodic local difficulties. Finally, Coat's growing market share indicates that its customers appreciate both the quality of its products and the speed and reliability of delivery.
That the Board has a sharp eye out for 'bolt-on' acquisitions, but is not going to be tempted to pay inflated prices also boosts my confidence in the company.
I expect earnings per share to increase steadily over the next decade and the dividend to rise accordingly.
I don't expect a takeover bid.

[essentialinvestor] 07/6/2022 13:25

That's a huge conviction position. Longer term looks very bright to me, with
weakening macro to navigate over the next year to 18 months.

Would guess COA will target growth in speciality materials, a further acquisition
would not be a surprise, augmenting organic growth opportunities.

[manurere] 01/6/2022 08:04

Hi 'essential,'
To be honest, my biggest concern at the moment is exchange rate fluctuations rather than share price volatility. As noted some time ago, my partner and I each own, independent of the other, very substantial (for private investors) holdings in Coats. In each case, our Coats holdings are our largest equity investment. In my case. Coats share constitute over 50% of the value my total portfolio.
I am very bullish on Coats's longterm future and expect the dividend to rise steadily over the next few years. Thus it is unlikely that I will sell my shares within the next five to ten years.
As note previously, we live outside the UK. Our shares through a trustee which in turn is arranged by our broker in our home country. So along the way, the ticket is clipped by intermediaries. And at some point those holding costs may outweigh the benefits of owning the shares.
So we do end up selling, it is most likely that it will be holding costs that force the issue.
I hope not as I want ether myself or my kids to reap the rewards of what I believe to be a very sound, long-term investment.

[essentialinvestor] 23/5/2022 13:46

manu, last week's update may be slightly flattered by customers advance ordering to avoid product shortages over the summer months.

I sold 24k at 68.9 pre results, which could have been outed for 78 pence on the day!.

[manurere] 20/5/2022 05:56

Can't believe that Coats share price held up so well on 19th, given the sea of red on global exchanges.

[manurere] 20/5/2022 05:55

Can't believe that Coats share price held up so well on 19th, given the sea of red on global exchanges.

[manurere] 18/5/2022 21:59

Well over 1 million shares traded Off-Book late in the day: - all at around 78.6 pence. Will be interesting to see if any significant changes in ownership are reported next week.

[ram376s] 18/5/2022 13:50

Keep moving COA .GDR possible multibagger .300 nurses to train new test .

[manurere] 18/5/2022 10:00

I am also surprised at how much the share price has jumped in morning trading. I suspect it is starting to get a little bit ahead of the good trading report. The turnover so far has been light and I think the share price will roll back a little as profit takers sell their shares. Unfortunately, I live in a different time zone and will not sit up through the night to watch the afternoon movement.
Looking ahead, the share price may break through the 100 pence mark later this year, but that too would surprise me. A more measured movement would be a consolidation around 90 pence if Coats produces a good set of mid-year figures.
I'd be very happy to be at 90 pence at the end of the year and to look forward to breaking 100 pence some time in 2023.
I remain confident that the share price will be around 145 pence by the end of 2025/early 2026. I also expect the annual dividend to be close to US5 cents by 2026.

[manurere] 18/5/2022 07:30

I am surprised how good the trading update is, given the issues essentialinvestor noted at the end of April. Looking some distance ahead, it is the steady growth in performance materials that bodes well for the future. Coats is a real manufacturing company: it makes useful things other people want to buy. At the moment, the share price is being suppressed by a more negative general environment. I expect that once the clouds blow away, Coats share price will soar.

[our haven] 18/5/2022 06:11

Trading update looks good with increases across the board. The better margins particularly look promising going forward.

[essentialinvestor] 09/5/2022 13:00

Had a few under 66.

[manurere] 30/4/2022 22:34

Always appreciate your insights. China situation is a worry, mitigated, to some extent, by extensive manufacturing elsewhere.

[essentialinvestor] 30/4/2022 14:33

Medium term for me would be 3-4 years ahead.

Short term potential risk factors ..are increasing China lock downs
impacting their manufacturing capacity, have COA seen any weakening in demand since
their very bullish FY outlook statement. Hopefully both will be answered in a
May trading update.

[manurere] 29/4/2022 10:26

I though I was going to have egg on my face for a few weeks. But medium-term, share price trend is indeed up

[uhound] 25/4/2022 14:06

Like a lot of stocks, probably just being marked down due to lack of interest.

Everything being pulled down currently.

[roguetraderuk] 25/4/2022 14:05

def will be behind some of todays weakness. it might react at 63p otherwise looking to that gap. would be v interesting there.

[essentialinvestor] 25/4/2022 13:58

We have sliced through the 68/67 area, at least at the time of this post.


Market may be now focusing to possible production headwinds?, given Coats have
significant manufacturing capacity in China. Bought a small amount.

[essentialinvestor] 21/4/2022 12:35

Dipped very briefly sub 70 pence yesterday afternoon, it was fleeting.

67/68 pence may be an interesting level as a medium term buy.


COA appear to be managing margin well so think it's a case of end demand
and how well that holds up with consumer disposable incomes under pressure.

At twice the size of their nearest competitor they have multiple commercial advantages
but COA is not immune to demand weakness.

[essentialinvestor] 20/4/2022 13:05

60 pence might need either a sharp fall in equity markets and/or
their next trading update to caution on demand or margins.

I misread the move to over 80 pence, expected COA to come back to around 67/8
before another upwards move.

[my retirement fund] 20/4/2022 10:01

60p target ?