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CCL - Coca-Cola Amatil

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DTM

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CCL dropping like there's no tomorrow. Down 66 cents as I'm writing.

Does anyone know why?
 
Re: CCL - Why is it dropping like a rock?

Just what the market needed - another profit downgrade.

Flat sales and increased inventories.
 
Re: CCL - Why is it dropping like a rock?

Looks like it was oversold on that day.

When I read the announcement, I gathered that it stated the main competitor, Pepsi, had not passed on cost increases in its pricing yet and this might have affected the volume of CCL sales.

Pepsi will eventually raise its prices and the playing field will probably move towards normalcy.

Possibility: Pepsi did not raise prices at the same time, to avoid attention of ACCC, which is currently in policing mode of price collusion.

There are several oligopolistic structures in the market. All have pricing power. Matter of time before they use it.
 
Re: CCL - Why is it dropping like a rock?

A possible double bottom completed today?

Cheers,
GP
 

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Re: CCL - Why is it dropping like a rock?

GreatPig said:
A possible double bottom completed today?

Cheers,
GP
Click to expand...

wow, yep nicely picked up

however just looking at the CCL chart for the year, there seemed to be a double bottom in July, however its just dipped back down? How big does the "bottom" have to be?

Thanks

MS
 
Re: CCL - Why is it dropping like a rock?

CCL is on my watch list but it has to clear $8.15 before I get serious. This is where long term support line meets current downtrend line.
 
Re: CCL - Why is it dropping like a rock?

Double bottom looking good. Got in at 771. Consensus Bloomberg target around 850
 
CCL

Hot upon it's freefall into the basement it now has gone XD 20Feb06. anyone have any words of encouragement and target entry.

Scratch

Who me give advice??
 
Cant give advice, but after ex 17.5c div you are looking at 6.70 plus continued weakness in the short term...imo we will probably see under 6.50 ..we all have different investment ideas,risk and methods, the market is an unforgiving beast to pros and newbies alike...always have an exit plan no matter if its bhp or imp....cheers
 
Huntleys have a Buy on it today on the basis that the stock is now undervalued.

Julia
 
Hi Julia,

Interesting info, thanks. It certainly helped the price to bounce off a long term support/resistance line. It will be interesting to see if it is enough to keep the stock in an upward movement or will it consolidate for a while?
 

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AFR and SMH have posted articles today re: CCL stating profits will rise by rise by 4.5%. Which is minimal compared to their previous performance.

The fizzy drinks company has forecast a 7 per cent increase in costs this year - at the higher end of its earlier guidance - due to higher prices for sugar, aluminium and PET resin, which is used to make plastic bottles.

Have held the stock for a while and don't like where its going.
 

Hello Gigabyte,

Agreed. It has wallowed around for too long now, and then this pessimistic outlook which has engendered several negative recommendations from analysts. I'm going to put a sell order in now - think it will continue dropping.
Are you going to hold on?

Julia
 
another thing is that you could possibly short the stock as all state schools are going to fade out all soft drinks and private schools are heading the same way.
 
Hi Julia,

My brokers has a buy on the stock as they feels its undervalued. It also has an annual dividend of 0.31c.

For now I'm going to hold......
 
another thing is that you could possibly short the stock as all state schools are going to fade out all soft drinks and private schools are heading the same way.
Click to expand...

As well they should, have you seen how fat kids are these days? They should have the kids doing 30 mins compulsory exercise every morning and eliminate all sugary and salty foods from the canteen, if parents can't look after their kids at least the schools should!
 
Gigabyte said:
Hi Julia,

My brokers has a buy on the stock as they feels its undervalued. It also has an annual dividend of 0.31c.

For now I'm going to hold......
Click to expand...

Good luck with it Gigabyte. A few analysts have had a Buy on it for quite a while. That hasn't caused any consistent uptrend in the SP which is all I'm interested in. Current forecasts are for little improvement until probably 2008.
In the meantime I can have that money in BHP e.g. which is what I did yesterday - sold CCL, accepted a loss, and bought more BHP while it was down.

Julia
 
You make an extremely valid point, as you may tell I still rely on analysis recommendations being a newbie to the stock market. However, slowly learning........

One thing, you used the term SP, what does that mean?

Gigabyte
 
Alcohol may be on Coke's horizon
From: By Katherine Jimenez
May 29, 2006

http://finance.news.com.au/story/0,10166,19286361-462,00.html

Coca-Cola Amatil chief Terry Davis yesterday confirmed the company, which already dominates Australia's $9 billion soft drink market through its soft drinks, water, sports drinks and juices brands, planned to enter the alcohol market.

"We've never ruled out being in the alcohol business," Mr Davis told Nine Network's Business Sunday program.

"Given the strength of our distribution capability, the strength of our sales force capability and new product development, I would think over the next three to five years it is a fairly logical move for us."

Mr Davis, who headed Foster's wine division for more than four years, did not say how CCA would enter the market or what type of alcohol it was interested in distributing.

One clue might come from Coca-Cola Japan, which launched a low-alcohol beer-like beverage in 2004.

Mr Davis said that entering the alcohol market was not on management's agenda today but that it was something CCA was going to "actively look at".
Part of the reason CCA is interested in alcohol has to do with falling consumer demand for carbonated soft drinks.

Coke has offset that slippage by entering into health and wellbeing drink markets, such as water, juice and sports drinks.

In the past five years, revenue from non-carbonated beverages has grown from 5 per cent of group revenue to more than 20 per cent.

Management pushed the boundaries even further last year when it acquired canned fruit and baked bean business SPC Ardmona for $500 million.

Mr Davis said its newly launched Coke Zero - aimed at young men - had "exceeded our expectations".

"It's grown the cola category by six to eight per cent just in the first few months," he said.
 
Coca Cola Amatil

Hi All,

Has anyone being watching the price of CCL lately. Its come down from $6.80 to $6.00 in the last 11 days.

Would love to know what your thoughts are on the stock, I know its had some bad publicitiy lately and thats probably driven the stock down but I wondering if its starting to look like a good buy.....

Any thoughts would be greatly appreciated.
Gigabyte
 
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