Coats Share Discussion Threads

[essentialinvestor] 26/10/2021 15:36

Had some, small amount.

[nicholasblake] 11/10/2021 17:41

EI, You may be right, but Peel Hunt reckons Coats is coping much better than its competitors - in the face of very strong demand!

[essentialinvestor] 11/10/2021 12:06

Nick, would guess with COA it's logistics, labour and product costs which may
be the current challenges. They referenced offsetting cost increases with
productivity improvements on the H1 statement, so the market may want
further clarity on trends since the last update.

[nicholasblake] 08/10/2021 16:16

Peel Hunt says Coats hasn’t really suffered from Chinese supply chain issues. Market not being discriminating.

[essentialinvestor] 08/10/2021 15:35

Luck with your holding.

Keep in mind you can always sell a % if uncomfortable with position size.

[scooper72] 08/10/2021 12:10

Thanks for the responses EI and Sky. Have decided to just stay put for now. Partly because of the possible fair value at this price. I think a lot of companies with exposure to China will have problems in the months or year ahead, but imagine people will find solutions to keep economies going in this technological age we are living in, even if that does mean a bit of inflation in prices while we wait for tech to catch up or solve current problems and do it's deflationary magic

[skyship] 07/10/2021 13:46

Hi EI - also taken a few at 65.07p - not totally committed due to their Chinese exposure; but its given back all its Summer gains, so perhaps value emerging.

[essentialinvestor] 07/10/2021 12:45

Hi scoop, SKY is the man to ask on TA.

Just bought a small amount, but please don't take that as any type of recommendation
as not high conviction on this.

Would guess logistics and labour costs are headwinds currently.

[scooper72] 07/10/2021 11:21

Anyone got views on support. Thinking to get out wile only down 3percent and wait for the chart to change course.

[essentialinvestor] 30/9/2021 15:01

Cost inflation may be what the market is focussed on
and yes agree this is worth watching.

COA were experiencing labour shortages in one of their US divisions
as highlighted previously. They also rely on China for as a manufacturing hub
and costs there are increasing quickly.

[skyship] 30/9/2021 14:38

Had a good run with these in the Spring (see P. No. 497 above); and perhaps another chance upcoming - 65p/66p a good entry point perhaps:


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[scooper72] 30/9/2021 13:23

I think people have likely been taking some short term profits and as this continues to drop I am thinking to start to grow my holding. Stockopedia has this on a PE of about 14 and a div of just over 2 percent. Also a few funds like Liontrust and Fidelity have been increasing their position over the summer. Perhaps the net debt at 264M is unattractive. And big pension liabilities as we'll probably put some people off.

[scooper72] 15/9/2021 11:20

Any thoughts of when the price will hit strong support? Looks like there is going to be a chance to accumulate more at under 70p.

[philanderer] 06/8/2021 10:18

Coats is mispriced, says Berenberg


Coats (COA), the world’s largest manufacturer of sewing thread and supplies, remains a ‘mispriced equity’, says Berenberg.

Analyst Anthony Plom reiterated his ‘buy’ recommendation and increased the target price from 80p to 85p on the stock, which closed up 0.9%, or 0.6p, at 71.5p on Thursday.

‘Recent trading shows a V-shaped recovery, earnings per share momentum is strong, margins are trending back to the mid-teens, and there is a very credible sustainability story emerging,’ he said.

The stock trades at a ‘significant discount to peers’ on a 14x 2022 price/earnings ratio and free cashflow yield of 4.7%.

‘We believe both the rating and earnings can move higher, so investors should not be deterred by the recent share price run,’ said Plom.

[undervaluedassets] 03/8/2021 11:41

Well I do not think anyone expected that..

Revenues and cash generation beat 2020 (of course given pandemic) but more interestingly bested those of 2019.

The median share price in 2019 was 85p. To my mind 100p looks fairly rational target given results modestly bested those of 2019.

The company is the world leader in thread manufacture and is sounding confident.

pays a divi too.

[our haven] 03/8/2021 10:09

Half year results look good. The momentum is back travelling in the right direction with some good contract wins. India back out of lockdown and H2 looking very positive. Cash much improved.

[american idiot] 15/7/2021 09:40

From yesterdays results...

Shares of industrial thread manufacturer rise as much as 3.09% to 69.9p, highest since Jan. 6
* Stock is biggest pct gainer on U.K. mid-cap index
* Co says HY group sales rose 36.5% to $732 mln, for six months to June 30
* H1 adj. operating profit to be ~$95 mln vs $34 mln a year earlier - COA
* Says strong performance and demand recovery have continued, despite recent lockdown impacts in India...
* Performance for FY 2021 is now anticipated to be moderately ahead of our previous expectations - COA
* Peel Hunt raises COA PT to 85p from 80p
* "COA will emerge from the pandemic with an accelerating sales performance driven by digitisation, new product development and sustainability" - Peel Hunt

..............

Coats are clearly performing very very well...

[manurere] 15/7/2021 02:51

Latest update much better than I or, it seems, other investors had anticipated. Coats is emerging very quickly from the Covid crisis much stronger than any of us had hoped. The update underlines, once again, how well the current Board and management have built a very sound platform for the future.
If one wants to be invested in manufacturing, then this appears to be a very solid option.

[manurere] 15/7/2021 02:51

Latest update much better than I or, it seems, other investors had anticipated. Coats is emerging very quickly from the Covid crisis much stronger than any of us had hoped. The update underlines, once again, how well the current Board and management have built a very sound platform for the future.
If one wants to be invested in manufacturing, then this appears to be a very solid option.

[our haven] 14/7/2021 08:12

Great update given the shutdown in India. Should see the price react positively to this update.

[manurere] 04/7/2021 06:27

While movement is not great, there seems to be quite a lot of buyers at around 68 pence.

I subscribe to analysts who provide a very detailed breakdown of global shares. They assess the value of Coats at around 145 pence; that's well above most broker forecasts. But brokers are picking short-term price movements; they are not assessing fair value.

As a very deliberate, long-term investor in Coats, my principal concern is the prospect of a low ball offer. If some smart buyer comes in with a bid of around 88 pence--a 30+% margin over the current price--then there will be heaps of shareholders who will happily take the money and run. The buyer will walk away with a medium term gold mine, while investors like myself will feel cheated.

The key to this company in the medium term is the performance of its industrial division. Technologically advanced threads that can be used in PPE, cable casings, high performance sportswear, etc. Thats where the medium- long term money is. And that's where Coats seems to be light years ahead of the pack.

There will be ups and downs along the way. But a share price around 145 to 150 pence and dividends around 7 to 8 US cents a year. That's where this company is probably heading.

[scooper72] 01/7/2021 15:23

Interims 3rd August. Deciding to hang around until then and see what the progress is. Not a lot of momentum in the share price at the moment. One of these holdings where one requires a lot of patience.

[skyship] 20/5/2021 07:41

Sp breaks through the downtrend and above the SMAs. Target - the December level of 73p. Could be a good trade...


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[undervaluedassets] 20/5/2021 07:10

It is a "re-opening" stock.

You cannot make much of anything without thread.

Price setting business rather than price taking business so well positioned for the inflationary environment.

I like how boring this business is too. Thread. Currently 'boring' old economy is where everyone wants to be.