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COACH INC: Bet on the will of Chinese's taste for American Made

|Includes: Tapestry, Inc. (TPR)
Coach’s growth potential, product mix, and management. However, Coach carries mixed signals on valuation and investment risks. The company is well positioned for continued growth and could possibly participate in further stock price appreciation if it is able to sidestep the risks associated with international growth and overcome the ‘new normal’ spending habits of US consumers. Valuation model puts this stock at 42.30 fair valued and 47.00 one year out, therefore I am putting this stock at a BUY at 15% Margin of safety of 35.00

-Expected CAGR for the next 3 years at +13%, Same store sales at +5%

-Fully realizing the CAP EX spent in China for high double digit sales growth

-Management's solid and CLEAR guidance about future outlook and plans

-Continuing and more consistent Dividend growth

-Forward 1 YR EPS is projected at 3.45, with a 15x fair valued multiple puts COH at 42.15

Disclosure: COH