Author Topic: COTY - Coty Inc  (Read 2801 times)

CorpRaider

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Re: COTY - Coty Inc
« Reply #20 on: February 16, 2017, 05:42:29 AM »
Sure.  I own zero but am watching it, just like POST.  It will therefore likely take off, while I continue to buy/own garbage like GM.

tylerdurden

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Re: COTY - Coty Inc
« Reply #21 on: February 16, 2017, 07:18:02 AM »
Sure.  I own zero but am watching it, just like POST.  It will therefore likely take off, while I continue to buy/own garbage like GM.

Haha. We are in the same camp in terms of both names I guess. In terms of the story for Coty, is this mostly about talented management, some from RB I believe, using their magic and turning this around? I didn't see any other potential reason to invest in this name so far.

rogermunibond

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Re: COTY - Coty Inc
« Reply #22 on: February 16, 2017, 08:34:37 AM »
That plus JAB Holding and their three headed management group of Goudet, Becht, and Harf.

http://www.jabholco.com/

valueinvestor

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Re: COTY - Coty Inc
« Reply #23 on: February 16, 2017, 09:27:03 AM »
Decided to start a small position today (less than ~2.5% of portfolio), because it seems the Younique acquisition makes sense. Avon is struggling because they do not have the infrastructure that Loreal, Estee, and Coty has which is why Coty made an offer for Avon, I believe. It is a great way to create products with the infrastructure for Younique, and if brand segmentation needs to be done, it can be done.

Though I am not a big fan of MLM, maybe these folks have a better idea than I do (certainly a better track record). It is selling for ~20x Forward OE/EV (earnings discounted to PV at a rate of 10%). If it needs to averaged down when the time comes, I'm sure I would be happy to do it.