Coats Share Discussion Threads

[essentialinvestor] 06/12/2022 14:28

Sold my last lot at 68.88 pence on the last update, hopefully get a few back on a bad day.

Positive news.

[my retirement fund] 06/12/2022 12:51

quality comapny

[our haven] 06/12/2022 09:36

The buy in for the pension scheme is is another big step towards fully insuring the scheme and great for the balance sheet. Liabilities significantly down and freeing up of cash flow, all good news.

[essentialinvestor] 12/11/2022 20:56

All in the CMS presentation I linked in an earlier post.

[simon gordon] 12/11/2022 20:01

Liontrust Growth Fund October update - 9/11/22:

Coats Group (+20%) moved higher as investors reacted positively to a Capital Markets Day focused on the company’s footwear division. Coats has expanded the scale of its footwear unit significantly recently with the acquisitions of US businesses Texon and Rhenoflex. It has now issued medium-term sales growth guidance of 7% to 8% per annum for footwear, with an operating profit margin target of over 20%. This higher forecast for the division has shifted up the overall group’s medium-term targets (inclusive of its apparel and performance materials divisions) from 5% to 6% sales growth per annum, with an operating margin target of 17%.

Coats also reiterated the message, already conveyed within interim results, that it has been able to offset cost inflation through price increases and internal efficiency measures.

Pricing power has long been one of the most valued characteristics we look for in the Economic Advantage investment process, stemming in our view from the barriers to competition provided by companies’ intangible and difficult-to-replicate assets.

[essentialinvestor] 26/10/2022 13:30

Oh dear, my sells from earlier this week looking a tad cheap!.

[disc0dave45] 26/10/2022 13:23

Does seem to be gaining a bit of momentum, although I expect a pullback at some point possibly around the recent placing price or the SMA200.

[essentialinvestor] 25/10/2022 15:15

Only got 9k left now.

Hoping to add those back lower, but plans can fall through as so often they do.

[essentialinvestor] 17/10/2022 13:22

On the move again, giddy up.

[roguetraderuk] 14/10/2022 10:07

disc, we all get things wrong especially me, often on an hourly basis, so no worries.

[disc0dave45] 14/10/2022 09:54

rogueI owe you an apology, when I checked the share count I used the data from stockopedia, which excluded the recent 145m equity fund raise, so yes +10%.

[essentialinvestor] 14/10/2022 09:44

Lots getting cheaper atm and cheap does not always equate to value!.

I would hope we are nearer the end of this bear market than the beginning,
best guess is we are within a month or two of lows - but let's see.
A substantive positive development on Russia/Ukraine would alter everything in an instant.

[roguetraderuk] 14/10/2022 09:36

its a decent company it will bottom with the mkt thats how i see it. i expect further although not massive new lows on the spx, so i think they may yet fill the gap below 50p. in others worth worth holding a position but imo not time yet to go overboard.

[disc0dave45] 14/10/2022 09:33

EIDon't disagree, I've pencilled in 88p for this FY. For me at the moment it's more about timing, waiting for some stability and signs the market is turning.

[essentialinvestor] 14/10/2022 07:48

Dave, if Coats can deliver over the next 2-3 years as set out in the presentation,
the share price may be very near or exceed the £1 mark.

On current FY 2024 consensus Coats trades on approx 6 X earnings,
given their market leadership positions that is astonishingly cheap.

They need to deliver, so the emphasis is on results
and as always dyor.

[disc0dave45] 13/10/2022 21:19

Very interesting presentation. As it happens I also have DOCS on my watchlist and bought into JD today.....some overlap there!.Makes sense to focus more on apparel & footwear (A&F) given operating profit margin is more than twice that of their performance materials (PM), just slightly concerned about them putting all (or a lot more) of their eggs in one basket - PM's operating profit growth at H1 was double that of A&F even though sales growth was lower. Although the sales pitch focused on the acquisitions and A&F, do think there's similar growth potential, if not more, for their PM's in the telecoms, energy and possibly personal PPE sectors.

[essentialinvestor] 13/10/2022 16:30

It was overdue a better day.

[essentialinvestor] 12/10/2022 19:48

CMD video and slide presentation from yesterday.

[essentialinvestor] 12/10/2022 12:06

I messaged the CFO last week re the UK pension scheme given recent gilt movements,
so reassured this was addressed in yesterday's presentation.

[manurere] 12/10/2022 07:19

I strongly recommend that everyone reading this thread download yesterday's outstanding capital markets presentation by Coats management.It is on the Coats website under investors.
The slide show outlines in very informative detail the rationale behind recent acquisitions and how they place Coats in a dominant position in footwear. For a long time I have been commenting on the strategic nous behind this company's recent progress. Yesterday's presentation confirms the wisdom of sticking with Coats as a very long term investment.

[essentialinvestor] 12/10/2022 00:26

Dave, RNS on 10 and 11 August '22.

One of the reasons for recent share price weakness is the gearing up of the balance
sheet to pay for the first of 2 large acquisitions this year, with funding partly relying
on a short term bridging loan.

[disc0dave45] 11/10/2022 14:24

roguetheyve had a 10% increase in share countSince when?, it's only averaged +1% in the last 5 years and only +0.5% in the last year.

[disc0dave45] 11/10/2022 12:32

They appear to approve :)

[our haven] 11/10/2022 07:41

Excellent numbers update today. Certainly a exceeding market expectations moment. See what the market thinks shortly.