Lioness Associates, Inc.

Economic & Corporate Risk/Yield Reports

September 23, 2012 - Coach 2012 Risk/Yield Update

While the last write-up in March 23, 2012 (below) indicated that the summer did have movement into yield, the global and the USA charts were mixed during this time and any potential for this company was unrealized (see USA and GLOBAL graphs).  With this writing, a newer version (software algorithm update) of the graphs has been provided and one notable point that is present in both the older and newer version of the graphs is the decline in the transient from yield to risk at the beginning of August period — this correlates with the drop of the Coach stock price from a close of 60.58 on July 30th to an open of 49.12 on July 31, 2012. This drop was likely the result of earnings that did not meet the market expectations.

The period from September until the end of the year may be challenging for Coach. While the USA economy is likely to improve in the short term  (see USA economy) and there are no red flags in the Global economy (see Global economy), for at least the next month or two, Coach after a brief period in yield in September of 2012, trends into risk for both core and transient.




  





March 8, 2012  -- Coach Risk/Yield for 2012

Coach released earnings and went from a 73.39 close on Wednesday (3/7/12) to an open of 75.95 on Thursday (3/8/12).

This company did have a brief period of under-performing the Dow in December of 2011 to being consistent with the Dow in January of 2012 and starting to move ahead as the earnings release approached although, the Delta Core/Transient still has the core predominately in "risk"  at the March 2012 period.

Both the Delta Core/Transient and Risk/Yield depict a 2012 summer season moving into the "yield".




 
Coach Delta Core/Transient 2012 Graph


Coach Risk/Yield 2012 Graph