Coty is a huge manufacturer of luxury brand cosmetics (Think: Burberry, Adidas, Calvin Klein, Cover girl, Bourjois, Tiffany & Co). This is one of the global titans of cosmetics and beauty.
Coty has been getting absolutely murdered in the streets during COVID, which makes sense considering the lockdown. Why would you buy buying make up if you’re stuck inside and no one can see you?
Coty initially started recovering some of their large stock losses in april, but with a recent fiasco of Kylie Jenner’s networth being potentially false and Coty’s new partnership with Kyle Jenner, the stock was hit hard again on Mid may due to doubts that this collaboration would succeed, dropping to $3.2 compared to a local max in Feb at $13. ATH was $32 in 2016.
At max it was down 75% in only three months. It hasn’t even recovered a portion of that.
Why is this a buy now?
Re-opening Hype: We’ve all seen the reopening hype of sports, bars, casinos, air travel. Coty serving luxury beauty, health, make-up, and fragrances will see significantly increased attention as the COVID lockdown absolutely slammed the demand of their products.
“Scandal” over: It has an absolute huge room to grow with the scandal behind them. It has gone up a bit since the scandal crashed the price, but it has significant room to grow in comparison to their february local peak. Even recovering half of the price drop as so many other lockdown hit stocks did, this would be more than a 10 bagger.
Potential buyout rumors: There’s been talk on the streets about a potential buyout. (link).
Robinhood Buyers increasing: The past 3 weeks there’s been a massive increase in buying of Robinhood users, hitting around top 30 robinhood buy increase last week. This is increasing each week. If you want in on this play you should jump on soon before the risk isn’t worth the reward. imgur.com/a/d79L4K2
Kim Kardiashian potential collab: www.cnbc.com/video/2020/06/03/coty-in-talks-for-potential-collaboration-with-kim-kardashian-west.html
Volume is best on near the money, the spread is slightly too high on the higher call options.
This is one of my yolo plays so I have $10k on the positions above. Not financial advice, I’m retarded.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.