RE:Limited Scope for ManagementHi Honeypot - I think the share price has been depressed since 2010 because earnings have gone down each year during that time and this has reduced demand for the stock. Analysts by and large will not go out on a limb with forecasts and so are slow to raise guidance, and even if they do that does not mean that demand for the stock will pick up enough to drive price.
Because I view this company more from the perspective of a business owner I don't need the stock price to tell me that this is a good investment. I just need to see the financial metrics looking strong. It appears they have had to put a lot of capital into the business the past few years but that their investment will pay off over the next 10 years. If over time the business does not perform then I will make a decision at some point to sell, but for now I like the 10 year history of business fundamentals and the low price I have been able to pick up this asset for combined with the dividend.
I know it is very easy for me to say this having just bought under $20. As an investor one of the hardest things to do is to separate what you paid for a stock vs the current price if you are in the hole. However, if you view it as a business owner then you really shouldn't care what the price is as long as you are happy with the fundamentals of the business and the direction it is going. Reading different books that discuss investor psychology has been very helpful to me over the years. The Mr Market story is the best. Imagine you own a store with a partner and every day your partner offers to buy you out. If he is in a good mood he offers a high price, if he is in a bad mood it is a low price. If you plan to own the business for a long time and are happy with the performance and what the business is paying you then why should you care what price is being offered - unless you are in hurry to sell it? How long would you like to hold COS for? Personally I would be happy to hold it for 20-30 years if the long term fundamentals remain relatively unchanged. Of course in reality I probably won't because I am always looking to upgrade my portfolio and will rebalance as better opportunites present themselves.
Investing is very personal but it should not be emotional. I don't mean to sound preachy here and I appologize if I do. The best part of these bulletin boards is to share learning, insights and different business perspectives. The worst part is that it often focuses discussion on the share price from day to day which is meaningless. This is my humble contribution.