Coats Share Discussion Threads

[justiceforthemany] 18/8/2022 13:50

Chart wise looking at 58-60p

[essentialinvestor] 18/8/2022 13:12

My lowest buy price over the last 6 months is 0.5815 on 24 Feb
(also near a 12 month low). Highest sell prices over 72 pence.


Over the last 3 months lowest buy at 0.6034 on 5 July.


This moves around just a bit!.

Over 74 pence bid available at the start of August - for those who timed it to perfection.
I had not expected that price with recession around the corner.

[my retirement fund] 18/8/2022 13:01

Just took a further 6458 at 62.7, not sure if we will see 60 again but a double bottom there is possible. I would imagine this weakness is those privileged holders who would have been sounded out well ahead of the recent acquisition and who would have put hedging in place ahead of the sudden book build many were not privy to. (as a guess).

[manurere] 18/8/2022 07:45

Looks like some of you did some smart buying. Notwithstanding global market gloom, I'd be surprised if Coats dropped under 60p.

[essentialinvestor] 17/8/2022 14:36

They dominate the threads market, double the market share of their nearest competitor
and are now clearly targeting footwear as a new growth area.
So that needs good execution.

[my retirement fund] 17/8/2022 14:31

Yes agreed if you've got a few years on your side and can wait it out, sure fire winner here. I will be adding if it does get ugly, or looks good value, that's my style, that is adding up to a no more than 5% of my portfolio though as I am limiting volatile and cyclical stocks more as I approach draw down.

[essentialinvestor] 17/8/2022 14:27

mrf, it could dip sub 60 pence if markets get ugly - if you can live
with volatility longer term looks much nicer - however there is obvs
a cyclical element to the business, consumers cutting back on clothing purchases
on that side of the business - only fair to say.

[my retirement fund] 17/8/2022 14:22

Jeez look at the EI, spooky, I was the very next trade after you !

8542

[my retirement fund] 17/8/2022 14:20

Not quite but taken my first purchase at 63.7p !

[essentialinvestor] 17/8/2022 14:20

Not quite yet - added 15,500k at £0.63749 and 16k at the same price.

Had sold 23k bought on 11 August at 64.05 up to 65.86 - reduces the holding cost average by a bit.

[justiceforthemany] 17/8/2022 14:14

SP now below offer price so you can buy at even lower price if you want.

[manurere] 16/8/2022 08:07

I am not sure how many of you receive Coats email notices; they are worth subscribing to.

Yesterday I received one that outlined the directors' uptake of the recent share offer, which I can confirm was at 63.5 pence/share:

David Gosnell (Chair): 157,480;
Rajiv Sharma (CEO and Director): 157,480;
Jackie Callaway (CFO and Director): 118,110
Jakob Sigurdsson (Independent Director): 47,244;
Fran Philip (ID): 25,984;
Nicholas Bull (ID): 50,000;
Hongyan Lu (ID): 7,874.

The positive from this is that all directors showed faith in the company and its future.

The negative, which I am sure will grate with UK-based investors, is that insiders had an opportunity that many other, UK-based, retail investors seem not to have had.

On 13 August there was a notification that Blackrock --one of the world's largest institutional investors-had increased its shareholding from 5.0% to 5.6%.

It is not entirely clear if this was via a UK-based entity or an off-shore entity.

I infer that the additional shares were purchased in the market and not through the capital raising.

Looking ahead, I agree completely with EI's recent posting. The shares do indeed look cheap, but it will not be until we get the full year results for 2024 that we will know how well the Board and Management can deliver the forecast earnings.

[theoriginalwonderstuff] 12/8/2022 15:12

Thank you all. Personally I can't find any evidence that my nominee share dealing account even offered me the opportunity to partake in the offer.Anyway, it is what it is... Time will tell if the placing was a good thing...Hope all have a pleasant weekend!

[essentialinvestor] 12/8/2022 10:14

On holiday this week and completely missed the announcement on the day and retail
offer, which through ii I could have subscribed for.

Firstly, astute not to pay for this through extra debt, although the placing shares
are dilutive meaning increased profitability needs to offset.

On current consensus, which is clearly subject to change (including FX movements)
COA sells on approx 7.5 X FY 2024 EPS.

IF, emphasis on if, that can be achieved, then Coats is very, very
cheap - but we are looking over 2 and a half years away on those earnings estimates.

They have geared up the balance sheet funding Texon through debt, only fair
to mention. Now COA the BOD need to deliver.
And at a time where wider macro is weakening.

[manurere] 12/8/2022 09:38

My partner and I each own heaps of Coats shares big we had been eligible, we too would have bought more.
That said, I can see why the Board opted for this approach. A general one for 10 offer to shareholders would have been expensive and would probably have required a lot of compliance to meet US and other jurisdictions’ requirements.
It seems that the market is happy with the placement.
As I have commented previously, I am a supporter of the ‘bolt on’ acquisition strategy Coats is pursuing.
Management and the Board appear to have a very clear sense of which acquisitions will help consolidate market strength at the higher quality/ higher margins end of the market.
If the strategy improves to be sound, then we can expect better returns.

[niklol] 12/8/2022 05:45

Thanks for your reply.
I would have bought at that price.
Too late now.

[manurere] 11/8/2022 17:55

I believe it was 63.5p. As a non-UK investor, I wasn’t eligible. It was basically an insiders’ deal as far as retail investors were concerned. But I am not overly annoyed. It raised capital quickly and efficiently. The company is expanding I expect the benefits to show through in share price and dividends.
The share price is already above the issue price and will probably move back into the 70p zone fairly soon.
I think we retail investors just have to suck up this one. Yes, we got stiffed a bit. But we need to take a broader view.

[niklol] 11/8/2022 07:39

Yes via email from HL yesterday afternoon.
The time I read it it the offer had closed! No idea how much the share offer was. Anyone know?

[theoriginalwonderstuff] 11/8/2022 07:35

Did anyone get an opportunity to buy shares as part of the capital raising/share issuance? I didn't and wonder why, as the RNS mentions that there was a retail offer element.

[justiceforthemany] 10/8/2022 16:53

Thoughts on the acquisition? Explains pull back. People were in the know again.

[manurere] 02/8/2022 23:02

Agree, EI. Always going to be some short-term profit takers out there.
I also thought that thevCEO’s comments were intended to keep in check shareholders’ expectations.
One also has to recognise a point you were making a while back; that is, that markets generally have been cautious for some time and that in that context, the Coats price has done well.

[essentialinvestor] 02/8/2022 16:17

Need to be a little realistic here, by Friday COA was Up about 20% in 4 weeks.

Some give back perhaps overdue.

[our haven] 02/8/2022 12:17

Manurere, not a great response so far today from the market but looks a comfortable hold to me.