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A few weeks ago I wrote about investing in Coach Inc. (COH). I am writing this post, to reiterate and reinforce my judgment on investing in Coach. There are two main points that I would like to make in regard to why Coach will be a valuable investment.

The first point is that Coach closed at $30.65 on Friday. That price is nearing the 52 week low of Coach, which is currently at $27.80. Any bright investor knows that a sign to purchase shares of a company is that company is financially strong and is nearing its 52 week low. And yes, with their return on equity (ROE) growing for the past three years and the ROE for the last fiscal year being in the high 30% range, Coach is a financially strong company. Coach’s ROE is not the only sign that they are a financially strong and growing company, but I shall not discuss this further here as I have dedicated a whole post to it a few weeks ago (read my blog post titled: Time to Invest in Coach Inc.?).

The second point that I would like to make is that a few days ago Coach announced a $500 million share repurchase program which is to be completed by June 2007. The repurchase program was initially set into motion to benefit employees through their compensation plans. At the same time this will increase the value of shareholders’ stocks as it will boost up the earnings per share (EPS) by the time the repurchase program is completed.

I cannot answer the question as to why some people might not decide to invest in Coach and take benefit of the growth potential over the long-run, but what I know is that any smart investor would take hold of the lucrative situation immediately and watch their investment grow.

The content in this blog post reflects the views and opinions of the author. The author will not be held liable for any investment decisions or activities that anyone takes based off of this information. This information should not be used to make investment decisions; rather it should be used for one to expand upon his/her own research.