CCL - Coca-Cola Amatil

[CanOz]

Well its interesting because it looked like another exhaustion gap, but it set a new low today and from what i've read it could continue lower (continuation gap) if it sets a new low again on monday. It probed lower today but closed off the low, so thats a good sign.

It gapped down on high volume back in May (4th) too, but then the next day it looks like all of the sellers were removed and demand appears to have crept back in and the trend moved higher and filled in the gap.

Look to Monday to confirm the trend.

Thats the way i see it as an amateur with a short term technical interest.

I'm sure there must be some fundemental opinions about it too.

Good luck.

 

[Buster]

This is a very quiet thread, particularly condisdering what CCL have been doing over the last week or so.. She's all over the shop like a mad woman, with no real news to speak of..

The results announcement didn't seem particularly impressive.. but she's been jumping all around the place with 30 cent price changes..

Anyone care to have a stab at the reason??

Cheers,

Buster

 

[Buster]

Wow,

Unbelievably quiet in this thread.. cant believe I was the last poster..

Anyway, similar question to my last.. everything red on the board today, except this stock up 22 cents..

What gives??

Regards,

Buster

 

[CAB SAV]

Judging by the stock slide, people must be sniffing coke not drinking it.
Looking for opinions on it. Lowest target price I've seen is $9.11 few months ago.

Thanks

 

[gfresh]

Takeover bid by LNN on the table..

$6.15 cash/share + 0.469 LNN shares for each CCL.

Implied offer price of $10.35 based on Friday's prices.

 

[prawn_86]

Takeover bid by LNN on the table..

$6.15 cash/share + 0.469 LNN shares for each CCL.

Implied offer price of $10.35 based on Friday's prices.

Obviously that is just for cokes Aussie and NZ operations yeh?

Is coka-cola listed in the US also?

 

[gfresh]

Yup, CCA is a separate company to the US listed co.. although the US owns around 30% of the local operations, so they would have to accept the offer.

While CCA has rejected it as being too low, at the moment market seems to be hoping for a counter-offer.

LNN is in a trading halt, although looks like they are just about to come out of it in a couple of mins - refer to ann

Multiple options, including an all-cash offer

The proposed consideration mix under the Base Offer (approximately 60% cash/40% scrip)
would provide CCA shareholders with both an attractive cash premium and an ongoing
participation in the benefits of the merged group.

Lion Nathan has also proposed a mix and match facility which would provide CCA shareholders with the opportunity to select either the Base Offer (which is $6.15 cash plus 0.469 Lion Nathan ordinary shares per CCA share), Maximum Cash Consideration (representing $10.25 cash per CCA share), or Maximum Scrip Consideration (which is 1.171 Lion Nathan ordinary shares per CCA share valued at $11.61 per CCA share based on an EPP of $9.92). Both the Maximum Cash Consideration and the
Maximum Scrip Consideration are subject to scale back.

 

[dink182]

What is this likely to do for LNN stocks when the offer is declined or taken up?


Also, CCL does local distribution for Jim Beam and various other Liquor and Beer brands. That is why LNN would be interested in buying them out.

 

[skc]

While CCA has rejected it as being too low, at the moment market seems to be hoping for a counter-offer.

What do you mean by counter-offer? Or do you mean higher offer?

CCL is trading below the implied LNN offer price which means the market on average thinks that the deal may not go ahead, or don't like the deal in it's current form.

The encouraging aspect is that LNN acquisition funds are backed by Kirin in the form of equity above the current LNN share price, which is rare in this market environment where new equities are often heavily discounted.

 

[alphaman]

I think it just means he's hoping for a higher offer.

As a stand-alone CCL is expensive even at $8, so $10.8 will pay off only if LNN can realise the synergies. Financially I don't think Kirin has much room to go higher, but you never know, the corporate executives are very good at wasting shareholder funds.

 

[AS414]

Some discussion on LN's (potential) motives here:

http://internationalbs.wordpress.com/2008/11/17/more-beer-moves-down-under/

 

[AS414]

More action in the soft drink sector with Japanese brewing giant Asahi outbidding CCL for Cadbury's Aussie Schweppes business. More discussion here: http://internationalbs.wordpress.com/2008/12/29/more-action-brewing/

 

[AS414]

More on the manoeuvers in the industry: http://internationalbs.wordpress.com/2009/01/05/whose-shout-is-it-again/

 

[gfresh]

Boing!

Massive surge in the closing auction to finish at from $9.56 at 3:59p to $10.00 (+4.6%).. Or did somebody press the wrong button?

Takeover must be on the cards? waiting for the ann.

 

[gfresh]

haha, looks like somebody f'ed up last night.. I can only guess, but the algorithm the big boys use to set the price they want it to close at (because the market isn't manipulated of course) forgot to place the matching sell orders in the que to balance it..so instead it matched at way above where it was supposed to. Lack of true liquidity probably didn't help in that situation.

Corresponding dump this morning, like it never happened

 

[bloomy88]

Good results for CCL today:

- Record first half net profit of $212.7 million, up 12.1 per cent on the prior corresponding half year.

- EBIT was $373.8 million, up 10 per cent, and earnings per share rose 10.1 per cent to 28.3 cents.

- SP up 47 or 4.18% to $11.72.

- Interim dividend of 20.5 cps, up from 18.5 cps last year.

Looks like CCLs Indonesian operations are really taking off, with growth of 20%.

I have liked there growth opportunities for a while now and it looks like they are going to continue growing going from the CEO's comments.

Debt levels have been reduced steadily, falling from $2,159m in 06 to $1,710m now. With interest cover increasing from 3.8x to 5.6x over the same period.

Any other thoughts on CCL?

 

[Buckfont]

Good results for CCL today:

- Record first half net profit of $212.7 million, up 12.1 per cent on the prior corresponding half year.

- EBIT was $373.8 million, up 10 per cent, and earnings per share rose 10.1 per cent to 28.3 cents.

- SP up 47 or 4.18% to $11.72.

- Interim dividend of 20.5 cps, up from 18.5 cps last year.

Looks like CCLs Indonesian operations are really taking off, with growth of 20%.

I have liked there growth opportunities for a while now and it looks like they are going to continue growing going from the CEO's comments.

Debt levels have been reduced steadily, falling from $2,159m in 06 to $1,710m now. With interest cover increasing from 3.8x to 5.6x over the same period.

Any other thoughts on CCL?

A world wide company as CCL will always survive. It is solid as long as there are people in the world that like brown fizzy non alcoholic drinks and mineral water.

A company that was founded in 1886 and is still alive today is a testament to the product and its selling power. It is ingrained into almost every country in the world, and if it disappears so shall we all.

 

[bjay51]

Hi,
I am new to this forum. Wasn't sure if to post on this thread or start a new one. Decided the former.
I hold CCL shares and was looking to accumulate more. However, I have been wondering why the share price has risen so quickly over the last week. That's good, but I wanted to buy in at a lower price. I haven't seen any announcements from CCL since the AGM. Does anyone else have any information that might explain the rise?
Rgds, bjay51

 

[JTLP]

This has been getting a bit of press action lately - saw it on SkyBusiness news being mentioned by a couple of analysts as a top 10 buy of the future.

Essentially they were saying that CCL is one of those true defensive stocks that has continued to rise in falling markets. People will always buy coke ra ra.

I'm pretty sceptical of the SPC acquisition - looks like it may cost a bit and not be that profitable...

Anyway down 1% today but trading close to 52 week highs.

 

[ENP]

Any one care to share a thought on why you would own CCL as opposed to the Coca Cola (KO) listed in the States?

CCL has limited exposure to growth economies, whilst the parent company in the US has exposure to India, China, Brazil, Russia, etc.