"market darling PE without the market darling fundamentals = more pain ahead."
maybe, if your time horizon is 6-12 months. If it's longer term this is an excellent opportunity to accumulate, for those who don't believe this recall is going to hurt COH's longer term returns.
The market has already discounted the stock 40%, basically factoring in a 40% drop in earnings in FY12. This is probably correct, but at $40-45 it would be factoring in this return long term. Equities are being priced on very short term time horizons right now. So if you view this recall as basically destroying the future of this company stay away. If like me you don't think it's reputation has been hurt that badly it' time to buy a quality business at a low price and throw it in the draw for 5-10 years.
"market darling PE without the market darling fundamentals =...
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Last
$294.94 |
Change
-0.610(0.21%) |
Mkt cap ! $19.30B | |||
| Open | High | Low | Value | Volume |
| $300.80 | $300.80 | $293.61 | $35.77M | 121.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 518 | $294.90 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $295.33 | 361 | 1 |
View Market Depth
| Last trade - 16.10pm 15/11/2024 (20 minute delay) ? |
| COH (ASX) Chart |