debt will be refinanced at a lower rate when earnings improves and marianos value pushes the rndy conglomerate higher...
from price to sales this is a major buy...
reminds me of ZLC... soared from 4 to 21 and bought out by signet who overtook the company and made it bigger and better.
Sentiment: Strong Buy
and buying back stock... means they have cash flow to sustain the company and reduce the float increasing the value of your shares.... seems like if they can just get some more product offerings and customers this is a positive play from here on out.
if this company is not bought out the stock should still be 11-13 max... it isn't even profitable.
as soon as utilization is not as hot and the drilling activity shifts - this can correct very quickly, the fact that analysts keep upping their estimates to just stay in line with the overall price activity is a very negative sign to me...
look at cos like LL and other such companies that have had this, they fall very fast when market shifts slightly.
just came across vale recently, so pardon not knowing the answer am going to begin reading filings... just wanted to know if there is any pre-existing relationship or ownership I should know about with the govt... akin to PBR.
What do you think?
I say KORs has more to lose... especially from this point.
Sentiment: Strong Buy
it does suck that the analyst day wasnt bullish, but i mean it could be a long term positive by getting all the negative out in the open, hopefully it trends up and doesnt look back from here.
stocks have ups and downs... JCP had a liquidity crisis further exemplified by reduction in revenue.... DRASTIC reduction in revenue... not moderate to small reductions...
The situation is different... People defending JCP shoudl have reviewed the debt maturities and inability to meet their payments on time because of reduced sales and cash flow.... SERIOUS issue which is why the company got CRUSHED
Also, JCP fundamentally was getting crushed by other cos.... and went through a much worse identity crisis...
COH does not have to worry about the debt issue... which is a major positive in this market... they have increased their dividend for three years... and now they may either sustain or slide it back to a smaller dividend to save face and shareholder value... but either way... the situations are so different.
COH has significant value to be bought out and/or restructure....
A buyout would not happen for less than 55-60 per share.
Suffice to say, as far as defending the bottom, I am not here to do that... what I am here to say is the selloff today is the worst seen in recent months... would not make much sense to those who bought yesterday to sell today on one of the heaviest trading days in COH's history based on what was reported today... it is overdone, period.
read it, thx... however please elaborate on the 10 dollar drop if you have any metrics to your opinion that would be great.. if not then please go back and learn to read some financial statements bud.
it is funny you are comparing two different companies with SIGNIFICANTLY different financial positions and issues.
COH luxury handbag and style segment from a highly profitable co, to a highly profitable co that has more competition and has to close stores due to less demand.... use your brains did you ever take an economics or finance course?
did you ever review the valuation of JCP?
JCP currently has 5.5+B in debt... extremely risky for a co with falling sales...
COH has 200M in debt... that is a MAJOR difference... the sheer scale of JCP's sales size is an interesting point, showing they had more to lose.. COH is in a different segment altogether and has been tremendously profitable for years.
JCP went from making around 18b to close to 12B in revenues in a year period... COH is guiding a low teens drop in top line sales, but did you see that 2013 revenue actually is higher than previous years for COH?
a double digit decline in revenue brings COH's revenue to around 4.5B above its 2011 point
good post... most today is just blatant hate... for anyone that was already short, they should have taken their profits by now and not gotten greedy as the company is taking serious steps towards fixing their current issues.
while I agree closing stores is an indicator of less desire overall... calling it dead money is a bit blatantly one sided... I think stores should have been closed slowly over the past year rather than all at once... but the management is serious about the turnaround... so that is a positive.
gives them a chance to focus on the good stores and appeal to their existing fanbase... and then expand on their life style approach... as well as focus on the international growth which is where the real cake is in my opinion on the lower price strategy segment.
I am... and I have done a lot of market research on my own on forums and the like...
Some like kors some love it, some love spade, some don't... most love LV... COH's new pro style guy comes from LV... COH is liked and considered passe currently hitting the top line sales portion.. Yeah okay... but is it dead?
How do you define death of a brand that is profitable and has a gross margin of 70%+ and has free cash flow... and significant access to capital markets to fund growth.
That is not dead.
Also if you are going to site insider sales... where were you when Michael Kors sold a big portion of his stake after going public dropping from 15 to 2% holdings...
Use YOUR brain.
Brand has a brand image problem... does not mean it is dead... and ESPECIALLY not dead in international markets where growth has been shown through hard financial data.
true I mean it is a rough time for the brand... you have competition coming hard at different pricing points where it didn't previously exist... I think the fact that we already are down ~30% YTD shows an opportunity... it is contrarian and certainly painful today... but there is potential.. So we'll see I suppose.
KORS and spade are coming at COH's jugular... COH needs to stay calm and come up with the branding strategy to take president over the lifestyle strategy... IMO
rather arbitrary value... where does this $10 number come from? It lost 10% today and the option premiums were betting on this loss earlier this week... but how much in market cap do you think COH stands to lose and why?
If comps go down in NA by 10-15%
Also I heard low to mid teens not mid to high... please post your source info.
did you miss the last earnings report where they beat the street estimates? We have known about the north american decline for quite some time already. Where were you?