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Author: Mliaom Big red star, 1000 posts Ticker Guide Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77  
Subject: Is COH Tier 1? Date: 9/1/2012 12:44 PM
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Hi Joe,

I wanted to bring Coach to your attention as well, as I feel it is presenting a fair to bargain valuation?


Almost 40% off 52 week high.

2% dividend to protect the down side.

Present TTM PE is around 16

Cash flow yield 6.3%


Management still expects double digit growth going forward. I think it deserves spot on a watch list and maybe even an entry below $50 would give us a yield of around 2.5% 52week low is around $48.

In other words, it is a bargain and maybe even Tier 1?

What do you think?

Tony
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Author: TMFGuardian Three stars, 500 posts Supernova Odyssey 1
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Subject: Re: Is COH Tier 1? Date: 9/4/2012 5:35 PM
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Hi Tony,

Coach is an excellent business, and, as you have mentioned, it has many of the qualities that I look for in a Tier 1 enterprise.

Though I have to admit that I tend to gravitate towards businesses at which I have personally enjoyed an excellent customer experience – and I have never shopped at Coach.

This is definitely not reason enough to exclude Coach from the Tier 1 portfolio, but I feel that it gives me an extra edge when I have personally experienced (and enjoyed) a company's products and services.

There are other companies that I am more familiar with that are getting close to prices at which I would like to add them to Tier 1, so while I may add Coach to the portfolio at some point, it probably won't be soon.

Having said that, I know a lot of great investors who really like Coach at its current price, including my real-money compadre Jason Moser:

http://www.fool.com/investing/general/2012/08/01/im-buying-t...

Joe T

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