Coastal Contacts Inc COA

please somebody be critical...

[FncialHrmitCrab]

I cant argue with your analysis FFH.  Im probably a bit more bullish on revenue over the course of two years from now. (I started a new chain because all of the "Re:"s were starting to get to me.)  The contacts business is stable, no doubt, but it is the eyeglass business that Im really excited about for similar reasons that you have cited, but MORE...  While it is true that the company can leverage off of their contacts customers to sell eyeglasses, I actually forsee the company starting to gain more initial customers through the eyeglass business and then expanding to sell THOSE customers contacts and other products. 

The word of mouth of cheap contacts is a good thing.  The word of mouth of the cheap glasses seems different to me, however, in the passion that people exhibit over their savings.  These people actually become walking attention -getting billboards and a testament to coastal's great prices and service.  (ie. nobody says "hey julie - are those new contacts youre wearing?")

I believe you can see evidence of this "phenomenon" (I know - a little overkill of a term) when you check out the facebook sites of clearlycontacts or coastal contacts.  The growing fanlist and commentary has become mainly focused on the glasses offerings. 
 
Since we are the only two to comment here I dont really want to add too much because it really will just be a conversation with ourselves.  Its too bad its not really an active discussion board because I think there are so many angles to the growth/success prospects to this company.

[sjw247]

Much of this depends on who can be the dominant player in this market. The price points of COA seem extremely competitive and they seem to be making a play for this position. ----------Original Message Posted 3/4/2010 6:29:40 PM---------- I cant argue with your analysis FFH.  Im probably a bit more bullish on revenue over the course of two years from now. (I started a new chain because

[FncialHrmitCrab]

I agree with you sjw - there seems to be a full out dog fight amongst the online players right now.  The result is that today's results are not surprising - rapidly increasing sales, particularly in eyeglasses (up 180% year over) with steady but not growing profit levels.  The key is when these companies are able to consolidate to the point where they can turn on the profit taps with

[Shnapps]

Same problem this company has always had .   Shrinking margins. 

[super_bolt]

Today they came up with their q1 result and it was pretty good but hav'nt seen any kind of upward movement in stock. They are getting into glasses, have a good margins and have no debt and cash flow positive. The chart looks pretty good and looks like its gonna hit 2$ in couple of months...What you guys think?

[ma99]

Hi guys,been reading your "Re's"... Think there's huge potential for COA. I've been followin COA and Lensway, which is the leading company in Sweden, owned by COA. And I see a lot of expansion in Europe, there was an article about Lensway last month with an interview of Daniel Mühlbach, CEO, and it was promising news that he had to share and also for Lensway and COA

[FFHWatcher]

re: Shrinking marginsMargins were under pressure a few years ago and it was a consistent problem.  For the past 2 years or so, this certainly has not been the case.  Coastal has consistently kept their advertising and SGA at 11-13% (each) of their revenue.  If anything, they have been falling.  In the past quarter, if you had read their MD&A, they explained that their sales

[ecomplayer]

Think you are mixing up a few things here. The gross margin was minimally impacted by currency exchange during the latest quarter. On a year over year basis during the quarter, the average value of the CDN/US exchange rate was about the same. Secondly, the cost of sales is largely in the same currency as the revenue so margin is not impacted at all in that scenario.The bottom line is that the

[kidl2]

>>>Its too bad its not really an active discussion board because I think there are so many angles to the growth/success prospects to this company.<<<Growth for any micro cap public company needs to be well above what COA has shown. It's a sitting target for a takeover or for going private. The upside is a takeover. The downside is going private.It's a well run company but

[FFHWatcher]

Cost of sales     SGA % of Sales                Advert as % Sales            Q over Q sales growth71.3%                   12.9%