Picked up some COH yesterday @ $45.85 There is still a lot of uncertainty in the short term with the recall but this is one stock that I am happy to put in the bottom drawer with the confidence that in 5-10 years profits will be much larger than today.
A nice rising dividend yield will also be a bonus.
Big gap down this morning. Looks like sub $45/share is on the cards. More and more brokers are downgrading their recommendations to "sell" on COH. Playing around with charts as a novice technical person suggests that ~$45/share is a support level for COH and a break beneath ~$45/share might spark some severe selling.
Maybe you are right, with broker reports like this.
http://www.businessweek.com/news/20...-costs-may-exceeed-a-35-million-ubs-says.html
COH made ~$180 million NPAT last financial year. The $35 million does not bother me as long as COH maintains market leader status and growth into the future.
Still happy I bought @ $45.85 a few days ago.
I think that's the broker downgrade which sparked the sell-off yesterday morning. The losses were trimmed as the afternoon wore on and last I checked, COH was up this morning (though not as much as the market overall).
FWIW, the brokers are simply guessing at what they think the recall will cost. COH advised shareholders late last month that they expect to update the market on the cost of the recall at the AGM later this month. Brokers need to write something to fill their reports to their clients. The upside risk is that the recall costs COH not very much at all and the share price spikes in response; the downside risk is that COH still cannot advise the market of the cause of the recall and therefore its costs.
I recall reading yesterday that COH believes the fault is being caused by moisture seeping into the implant. I think this was in a summary of a broker recommendation re-published by FN Arena.
It looks to me like that $45/share level has held firm. Big bounce this morning of more than 5% so far on no news. That makes me a little suspicious.
Picked up some COH yesterday @ $45.85 There is still a lot of uncertainty in the short term with the recall but this is one stock that I am happy to put in the bottom drawer with the confidence that in 5-10 years profits will be much larger than today.
A nice rising dividend yield will also be a bonus.
Picked up some COH yesterday @ $45.85 There is still a lot of uncertainty in the short term with the recall but this is one stock that I am happy to put in the bottom drawer with the confidence that in 5-10 years profits will be much larger than today.
A nice rising dividend yield will also be a bonus.
Congrats, you picked up Cochlear at probably the last time it'll be at that price. I would've bought some if I were quicker.
Cochlear was oversold so much, but since management are being really ambiguous about the details of the recall, I'm going to hold off buying for a bit. In the long-term though, this is just going to be a tiny blip in the share price
Critics were at their most vocal on the day immediately following the announcement of the recall, when details on the recall were very ambiguous. But now that management has a clear idea of the total expenses of this entire fiasco, the element of risk that many were fearful of has been mitigated.
[my bolding]
Your blog appears to contradict your post...
Good blog too.
Looking at my notes on COH there a lot of the same points as in your blog post. So I guess we're either both wrong or both right!
Thanks for pointing out that inconsistency, though what I meant is that while management has an idea of the expenses of a 1% failure rate of the CI512 product, they haven't even mentioned what exactly is the failure rate now. What do they estimate it to be? Could these failures be merely a precursor of many more? Does management's $130-$150 million provision take these questions into account? These are lingering questions that make me hesitant to buy right now.
And besides, the stock's now a little over what I estimate to be its intrinsic value, so I'm no longer in any rush to buy COH shares.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?