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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (54071)	6/19/2014 6:09:33 PM
From: ChrisGillette	Read Replies (2) \| Respond to of 78666

<<I'll reconsider COH. Right now, I doubt I'll be a buyer. What's happening may be something different from just a change in fashion. When a premier brand loses its cachet or mystique or aspirational value or exclusiveness, which seems to me might have happened to COH, the company and its future products may be tarnished for a long time.>> Wow, these are pretty strong statements. What makes you think that Coach--a brand that's been around for like 70 years--has all of a sudden become tarnished for the long-term? Perhaps I'm crazy, but I've seen this over and over and over and am convinced that market sentiment is just highly manipulated. People who are otherwise intelligent do stupid things like sell Netflix at $60 because CNBC and other media outlets convinced them that its business model was permanently broken, or sell HPQ at $13 because they became convinced that nobody would print things anymore and that everyone would buy tablets instead of PCs. Maybe it's different with Coach and the model really is broken for the long-term. But I'm betting that it's a simple transition period coupled with sky-is-falling manipulation. Despite the hype, Coach still generates like $1 billion in annual cash flow...