Investing in Coach Inc. (COH)?!?!

Question

Would anyone recommend investing into Coach Inc.? why or why not??

Answer 1

Tough to say.. I'm going with no for the moment, but maybe on a dip in the near future.

Old investing saying "the trend is your friend".  If you look at the chart it's been down.. Oh, there's some bumpups lately and we may get an election time rally, but stocks in general have entered a "bear market" which doesn't tend to change it's pace rapidly.  One of the harder hit sectors is Retail, which COH is a part of, though it's key statistics don't seem to give indication of COH being affected technically.(I'm surprised how good the statistics look actually). Retail will likely remain a harder hit area with the exception of Walmart.  However, the election rally may extend to a "Santa Claus" rally particularly for Coach and travel related items such as what Coach sells,  if oil drops as it has been and lower prices convince more people to travel.

Answer 2

I would not. It has a positive 1 year chart (recent uptrend), but I think that retail stocks will fall and re-test their lows again.

http://finance.yahoo.com/echarts?s=COH#c...

Answer 3

It might be just a tad premature to invest in COH, but if you really want to make an investment in COH invest about 1/2 of the total that you would want to invest and in about 5 month invest the other 1/2 just in case.  In December there might be a great deal of tax selling from those who bought at somewhat higher levels.  

Fundamentally, COH markets to the more afluent and those who wish to appear more afluent.  Now the more afluent will continue to buy COH products but the afuent want to bes will be having some problems.  

Frankly, if COH were to depend on me for sales they would not have any.  $110 for a bill fold is just a little bit too much.  But I doubt if Paris Hilton would care one iota.