Coach, Inc. (COH)

ratskins (79.44) Submitted: 1/28/07 5:01 PM : Start Price: $43.47 COH Score: -21.58

I bought COH in 2004 when investors were really not clued in to it. It's up 108% as of 1/28/07. Is it still worth owning? I say yes. It is still in it's high growth phase. Return on equity exceeds 40%. Debt has been reduced to virtually zero...nice in the current interest rate environment. Profit margins at about 23%. Shares have been diluted, but only in a very superficial way. Shares are available at a discount to intrinsic value. So it is still a green light at this point, but one will want to keep up with the story to look for signs of deterioration in the business model. Specifically, I worry about competition from knock offs. Hopefully they are branching out into related areas.

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