stocktrademan
8 years ago
COH buy option 45.54
buy 16 JUN 17 44 call for 1.90
inverted head and shoulders bottom
people will buy to get the $0.3375/share quarterly dividend announced
option expires before so any dividend chart price adjustment won't affect the option value downwards during its duration
bull flag breakout with strong gaps
NEW YORK--(BUSINESS WIRE)--
Coach, Inc. (NYSE: COH, SEHK: 6388), a leading New York design house of modern luxury accessories and lifestyle brands, today announced that its Board of Directors has declared a quarterly cash dividend of $0.3375 per common share. The dividend is payable on July 5, 2017 to shareholders of record as of the close of business on June 9, 2017.
http://finance.yahoo.com/news/coach-inc-declares-quarterly-cash-104500999.html
normal chart
log chart
free_bee
11 years ago
Coach has historically increased its dividend in the May-June period and free cash flow supports a strong increase this year.
If cash is king, then Coach investors may soon love their monarchy
Shares trade for just 14.4 times trailing earnings, well below the industry average of 21.9 times and even below the stock's five-year average of 17.8 times earnings. Valuation multiples have many wondering if the shares could be a strong value play on a rebound though most are still hesitant of falling into a value-trap.
While I won't pretend to call a quick turnaround in the shares, there is one very strong reason for a long position.
Despite weakness in the shares and sales lost to competitors, free cash flow continues to increase even on higher capital expenditures. Free cash flow increased by 13% last year to $1.17 billion, even as the company increased capital spending to $241 million. Coach has increased free cash flow by a compound annual rate of more than 9% over the last five years.
The company has increased the dividend per share amount by a compound annual rate of 35% since it began making payments in 2009. Coach has purchased $2.2 billion of its own shares over the last three fiscal years and still has nearly $800 million of cash on the balance sheet.
The company has increased its dividend in the second quarter of every year since 2010. On annual free cash flow growth and previous increases, I am expecting an increase of at least 25% to be announced in May or June for an annual dividend of $1.69 per share and a 3.4% yield. On $1.69 per share for the remaining two payments this year, the company would be paying out approximately 37% of net income. Beyond the dividend increase, it's possible the company could also announce a more aggressive buyback program.
Coach has not been kind to shareholders over the last few years but that may soon change with more cash returned through dividends and a repurchase program. While it may still take a couple of years to see strong price appreciation on international growth, the attractive dividend yield and possible increase to the buyback program should provide decent returns until a turnaround is achieved.
http://seekingalpha.com/article/2111903-a-dividend-increase-could-send-this-laggards-shares-higher
risk on
11 years ago
Techs in play for quick pop back up to the T line ( 8 day exp ma). Lots of positive signs for such, the Doji below closing below the lower BB today. The Stochastics are in way oversold range, the RSI is beat down, and price is way away from the T line. Historical fact on all stocks shows the further away from T line, the much greater likely hood of a retouch. T line now at 51.66. But that Doji is what sticks out as the most salient signal.
Caveat: there is no definite confirmation, needs a day or two, but the other signals noted above are circumstance enough for me to have bought calls at EOD.
jacktrades
11 years ago
The Coach CEO is Buying
By JODOR JALIT in Insider Trading, News
Published: October 25, 2013 at 1:54 pm
The Coach CEO: On Thursday, Lew Frankfort, Chairman and CEO at Coach, Inc. (NYSE:COH) acquired 21,000 shares of common stock at a price of $48.38 each, for a total transaction worth $1,015,980. With this transaction Mr. Frankfort has allocated a total of 2,053,141 shares of common stock under his direct control, for an estimated capital investment worth $100.7 million.
Coach, Inc. (NYSE:COH)
According to our records, this is Mr. Frankfortβs first transaction for 2013 concerning Coach, Inc. His previous acquisition dates from March 2, 2009, when he purchased 50,000 shares of common stock at a price of $13.24 each, or a total capital investment of $662,000. Hence, at current prices the capital investment has so far appreciated an impressive 77%.
Mr. Frankfort has not been the only one purchasing the stock during the current year. Reed Krakoff, President and Executive Creative Director, reported two purchases during last September. The first transaction was completed on September 4, involved 35,821 shares of common stock for a price of $53.42 each, for a total capital investment of $1,913,557. The second transaction was reported on the following day, and Mr. Krakoff acquired 56,452 shares of common stock at a price of $53.40 each for a transaction worth $3,014,536.
As of today, October 25, 2013, Lone Pine Capital is the hedge fund holding the largest stake at Coach Inc with 5,858,347 shares of common stock, representing a 1.62% of its portfolio. Other important hedge funds are Gates Capital Management and Ariel Investments with 1,193,519 and 928,907 shares of common stock correspondingly.
Coach currently trades at 13.6 times its trailing earnings, carrying a 33% discount to the industry average. Also, cash dividends in the form of quarterly dividends have steadily increased since 2009 and stand today at $0.3375, representing an annual yield of 2.60%.
Disclosure: Jodor Jalit holds no position in any of the mentioned stocks.
Read more at http://www.insidermonkey.com/blog/the-coach-ceo-is-buying-273990/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+InsiderMonkey+(Insider+Monkey)#ddeeLuP38MCx54pd.99
http://ih.advfn.com/p.php?pid=nmona&article=59739156