Coats Share Discussion Threads

[manurere] 18/5/2023 07:49

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.

[justiceforthemany] 17/5/2023 17:08

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.

[essentialinvestor] 17/5/2023 16:20

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.

[justiceforthemany] 17/5/2023 16:01

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

[uhound] 17/5/2023 12:22

Business is slowing up. Sign of the times. People and companies are reducing their spending as costs rise. Inevitable.

[essentialinvestor] 17/5/2023 11:54

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.

[justiceforthemany] 17/5/2023 11:36

Not happy with that update. Market has tanked the share price
Another expensive acquisition gone wrong?

[manurere] 26/4/2023 10:10

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!

[manurere] 30/3/2023 07:27

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.

[essentialinvestor] 28/3/2023 07:49

manu, COA moves around a bit as we know!, lower levels may be available depending on the next update.

[essentialinvestor] 27/3/2023 11:25

Tempted to buy back in but will wait for the may update.

[manurere] 27/3/2023 09:40

Anyone looking for cheap Coats shares should jump in now.

[manurere] 14/3/2023 01:17

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.

[manurere] 10/3/2023 08:07

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.

[manurere] 04/3/2023 07:32

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.

[justiceforthemany] 03/3/2023 16:04

Raised Dividend.
P/E 10
Disappointing drop back today but was up 8% yesterday.
Takeover target IMO

[essentialinvestor] 03/3/2023 14:17

No comments on results folks?.

Read through the presentation, still to watch the conference call.

[manurere] 22/2/2023 08:53

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.

[essentialinvestor] 21/2/2023 14:40

Results shortly, share price right up against a 12 month high - break through or fall back..

[essentialinvestor] 25/1/2023 13:46

Should have bought a small amount last week on that dip!, but still watching.

[manurere] 20/1/2023 08:28

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.

[essentialinvestor] 19/1/2023 16:25

HI Manu, I'm still around!.

[manurere] 19/1/2023 06:59

I am surprised that there has not been any comment on this chat site since Christmas.

Wednesday saw a very high volume of shares traded with quite large parcels changing hands at 70p.

Longterm contributor, EI, sold his last shares at 68.88 and is "waiting to get back in." And while I have misjudged the market often in the past, I have a sense that he might be waiting quite some time as I suspect that the share is most unlikely to move back into the 65p to 69p range.

Coats is not a flashy performer, but the company's fundamentals are very good.
And while a climb to 80p, 90p, and 100p will take time, it now looks like both the underlying drivers of the share price and the substantial support for the current price are pointing to a steady upward movement over the next two to three years.

[essentialinvestor] 28/12/2022 18:58

justice, might be missing your point, but COA has markedly outperformed the majority of MCX stocks YTD. It's around 5% lower over 12 months, in a bear market.

I sold the last of mine at 68.88 so waiting to get back in. Having made a number of acquisitions over the last year
the market may want confirmation performance is as expected. For those who are more risk adverse, perhaps consider waiting for the next update. Covid's rapid spread in China may impact some of COA's manufacturing capacity.