What We're Reading ~ 8/31/16

Jesse Livermore: The man who sold America short in 1929 [Tom Rubython]

50 of the best investing blogs [Acquirers Multiple]

Why value investors are different [Seth Klarman]

Paul Tudor Jones and the nature of the beast [A Wealth of Common Sense]

Be mindful of rich valuations in low volatility stocks [Morningstar]

What are interest rates forecasting for stocks? [Cordant]

Are you smarter than an algorithm? [Financialist]

A new payoff to risky decisions [Psychology Today]

Don't let what you cannot do interfere with what you can [Tony Isola]

German savers lose faith in banks, stash cash [WSJ]

Coach's brand transformation fake-out [Glenn Chan]

Can TripAdvisor turn things around? [Skift]

Dollar Stores' startling admission: half of US consumers are in dire straits [Zero Hedge]

Tencent: WeChat's world [Economist]

The twilight of China's online consumer paradise [Bloomberg]

Why Amazon is suddenly swimming in cash [Internet Retailer]

The war on cash [The Long and Short]

The Bull Case on Coach (COH) From Broyhill Asset Management

Broyhill Asset Management recently released its research on shares of Coach (COH).  They're bullish on the company and classify it as a classic compounder.

Broyhill writes,

"Coach currently trades at 8.3x EBIT,  13.0x current and 11.7x forward earnings. In other words, the stock is priced as if Coach’s growth is long in  its past. At its peak in 2001, shares fetched 32 times earnings. If we assume that Coach ultimately trades  back towards its average forward multiple of 15x over the next three years, we estimate the stock is worth  $76.60 in our base case, which represents more than 50% upside potential. In our bull case, upside is significantly greater."

Broyhill's thesis on this handbag retailer is pegged on three growth drivers: the ascent of affordable luxury, continued brand extension, and ongoing international expansion.

They feel a short-term shift in investor sentiment has created an entry point for long-term investors.  Their report, embedded below, highlights industry dynamics, competitive positioning, and executive leadership.


They also highlight the following as areas of potential risk:

- International expansion
- The Chinese consumer
- Margin compression
- Brand dilution
- Competition

Embedded below is Broyhill's full 20-page pitch on shares of Coach (COH):




For more research from this firm, we've also highlighted Broyhill's pitch on Oaktree Capital Group.

What We're Reading ~ Analytical Links 3/20/13

What matters more in decisions: analysis or process? [Farnam Street]

The stock market and the economy are two very different animals [Abnormal Returns]

One of the most sentiment-driven rallies ever [Reformed Broker]

A pitch on retailer Coach (COH) [Old School Value]

Walt Disney (DIS): Can ESPN sustain its fee subscriber growth? [Trefis]

A small investors' guide to activist investing [Fool]

When will interest rates rise? [LearnBonds]

Technical tools for helping to identify possible market tops and bottoms [Chris Perruna]

Confirmation bias and the importance of asking "why might I be wrong?" [Incblot]

Why Redfin, Zillow (Z) and Trulia (TRLA) haven't killed off real estate brokers [BW]

This is the future of TV [Quartz]

Is it time to short Canada? [Bonddad]

How to beat Amazon (AMZN), Best Buy (BBY) edition [WSJ]

The scariest statistic about the newspaper business today [The Atlantic]

Short sellers flee the scene [WSJ]

10 signs stocks are about to tumble [Marketwatch]

Should investors be on Twitter? [Felix Salmon]

March madness analytics: blind bracket tool [WSJ]