Mike S. Newton, CIM FCSI
Coty Inc.
COTY-N
PAST TOP PICK
May 14, 2019
(A Top Pick Jul 11/18, Down 11%) The cosmetics sector got hit and COTY made some missteps. They remain the perfume leader globally and second in hair. Still a very good company that is getting back on its feet. But he'd be nervous entering it here.
The third-biggest player in cosmetics. They bought Cover Girl and Max Factor in 2016. They do the labelling behind fragrance launches. It's at rock-bottom prices now but will rise, perhaps by a sale. (Analysts' price target: $17.23)
Nice yield, large company. Looks stable. Put a stop around $12.95. Volume’s dropping, price is somewhat stable. Resistance around $14.70, could then reverse. Hold on if you own it, but he wouldn’t put new money in until he sees positive turnaround.
Been in a downturn since May. They should be doing well, because it's a consumer defensive, which is a sector performing well in the States. But Coty has not. Look elsewhere in this sector.
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