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Coach, Inc. Message Board

  • mr_al_greenspanus mr_al_greenspanus Dec 27, 2006 12:13 PM Flag

    Coach stock upside & Chicos

    I am glad that Chicos finally got the pounding they deserved! That stock is not in the same class as Coach and should have been whacked long ago. It may recover a bit, but not like COH.

    As for our baby, I am shocked by the rally this high up and I still can't see beyond a $20B market cap, which leaves little upside. I think in 2 years Coach's sales will be $3.5B, but what is a proper market valuation? So, I have started to sell calls against my position and if the stock gets called, good for me. I will do this over the next year and slowly get down to a more reasonable position. I do expect a split by summer, so that will be good for us too!

    Happy holidays!

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    • Chicos deserved a pounding? It's not in the same class as Coach? But you're pessimitic about Coach's future. My aren't you a kind indivdual; especially at Christmas time. Didn't you get the gift that you wanted?

      It doesn't matter what the market cap or price to sales of this stock or any other stock is. It's the amount of money that is put in the purse and left there that matters. Coach has a ROE of 44% now. It's about the ability of Coach to continue to expand and retain their high profit margins. Who knows if that will continue thou.

      But I do think that they will retain their profit margins and will have opportunities for expansion into other countries as they build their luxury brand recognition. Of course they too could have set-backs like Chicos has had.

      Personally, I wish that I had bought even more of this stock back when the price was hit hard.

34.05Feb 9 4:01 PMEST