Coty Inc. COTY

We are getting closer to the bottom ~2.0$.

Bottom is nearing… between 2.0-2.25$.

We did not reach the bottom yet.

New management should correct the mistakes and stabilize the business. Once it returns to growth it will go back to 15$!

Traded at 5 times EBITDA while all the peers are traded at 15++ EV/EBITDA which is a huge opportunity if the new management will clean all the dirt.

Should be today

How much could go tomorrow ?

More than half of sales is outside the US. All currencies are down 10-20% YoY against the USD$. I guess we will see decrease in sales (in USD$) although they expect LFL increase. Also the profits will go down outside the US (even if they go up in local currencies). Better to stay away until it goes down to 4$ in 6-9 months!

LFL sales are better than expected but in $ terms there is a big decline in sales especially in Europe due to the euro devaluation.