Our confidence in our investment in Coty, Inc.'s (NYSE:COTY) shares has increased as we have explained our investment thesis to friends and colleagues. (Yes, we do share investing ideas to those around us who tolerate some investment risk. In fact, two of our work colleagues invested about $40,000 in COTY shares over the past month or so.) As our readers likely know, the company initially popped up on our investment radar when we noticed share purchases by multiple insiders near 52-week lows in February/March 2017. Given such insider purchases and our knowledge of COTY's transformational efforts, we established a position in the company's shares earlier in 2017. To us, such insider share purchases show such insiders' confidence regarding the likely success of its transformation. Our readers likely remember that the company's transformation primarily involves the integration of three personal products businesses (make-up, fragrance and hair care) acquired from Procter & Gamble (NYSE:PG). Over the last several months, COTY's shares sold off due to adverse effects from higher-than-anticipated inventory levels in the acquired PG beauty business, competitive pressures in its consumer beauty division and the distraction associated with its merger integration efforts.
