Bargain hunters and the few short sellers covering positions could push the price up over $55 by the end of the month. The current float short is small and not a big concern, plus they provide fuel for Coach to appreciate again. Short interest is 4.9%. Looking at the chart, I expect short-term resistance near $55. Round numbers often attract like a price magnet and repel, causing a bounce. Expect a lot of volume to trade near $50 a share on Thursday, but also expect bargain hunters to start positions under $49 as an entry.
Our performance in FY '12 was highlighted by increases of 15% in revenue, 17% in operating income and 21% in earnings per share.What's the best play with Coach? There should be a very attractive trade coming up Thursday if Wednesday closes lower than Tuesday. Near the end of Thursday, if still trading lower, sell out-of-the-money puts. Investor fear pushes portfolio insurance prices up dramatically. Simultaneously, the stock price should bottom. It's not one to get greedy with, so hold the options for a few days and as the implied volatility falls (hopefully with a nice dead cat bounce) exit out with a quick hit and run for profits. Otherwise for longer-term investors, the best play is to wait until after next earnings release for an entry. At the time of publication, the author held no positions in any of the stocks mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
The top 30 deals set a Q1 record for deals over $1 million. In the quarter, we had 25 deals of $1 million or greater, nearly double from the prior year first quarter. Two deals were in excess of $5 million. And cross-selling was strong with more than 40% of the deals, including a middleware component and 3 being stand-alone middleware deals.
In China, Coach sales exceeded $300 million, up 64%, ending the year with nearly 100 locations. Second, our Men's business doubled in FY '12 to over $400 million, as we continue to open dedicated stand-alone and dual-gender locations globally, while also rolling out a broader expression of men's to nearly 1/3 of our North American retail stores by year end.