Coca Cola Amatil Becomes Most Appealing as Investors Pile In

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By Athena Yenko | June 13, 2014 3:21 PM EST

Coca Cola Amatil becomes the most appealing stock to cash in after a whooping overnight offloading of stock worth $270 million. Fifty investors piled in immediately after the selling.

Investment bank Goldman Sachs executed the bock trade of 30 million shares set at $9 and closed at $9.02 on behalf of an anonymous global fund manager.

CCA's stock has been in limbo in the few months that have passed.

During the first quarter of 2014, Alison Watkins, chief executive for CCA, shocked investors as it announced earnings forecast to slip by 15 per cent. The announcement came after shares of the stock fell consistently over the past years by 23 per cent.

However, now that CCA stock is nearing a five-year low, the stock becomes enticing for investors as the company tempts at FY 2014 dividend yield of 5.1 per cent and a price-to-earnings ratio of 16.1.

More reasons to Jump In

 In October 2013, the company announced its target of 1 per cent incremental EBIT growth from alcoholic beverages for 2014 as it secured partnership to Casella for distribution of Rekorderlig cider, the Number 1 cider brand in the off-premise sector in Australia.

"With the announcement today of the exclusive agreement to distribute Molson Coors premium beers in Australia and the C&C Group'sbeer and cider portfolio in New Zealand and the Pacific region, together with the development of a domestic premium and craft beer portfolio, we believe we are well positioned to hit the ground running with an expanded alcoholic beverages portfolio for 2014," CCA said in a statement.

The company can become the sole large scale manufacturer, distributor and full service provider for premium international alcoholic beverage brands in Australia.

"We are targeting over 1% in incremental earnings growth from our alcoholic beverages business from 2014 onwards."

Furthermore, CCA is now on track in delivering $30-40 million of annual efficiency gains and cost out initiatives by 2014 - 2016.

"This major operational efficiency programme, announced in February, will seek to deliver sustainable savings by leveraging the investments made over the past few years on state-of-the-art production and IT infrastructure. It is expected to deliver $30-40 million of annual efficiency gains and cost out initiatives over the next three years and is on track to deliver $10-15 million in savings in the second half of 2013," CCA said.

As of June 13 (14:30), the stock is priced at $9.10.

Coca-Cola on June 8 called on soccer's rulers to deal thoroughly with allegations of bribery to secure the 2022 World Cup for Qatar, an issue overshadowing this week's kickoff in Brazil.
Coca-Cola on June 8 called on soccer's rulers to deal thoroughly with allegations of bribery to secure the 2022 World Cup for Qatar, an issue overshadowing this week's kickoff in Brazil.

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(Photo: Reuters / DYLAN MARTINEZ)
Coca-Cola on June 8 called on soccer's rulers to deal thoroughly with allegations of bribery to secure the 2022 World Cup for Qatar, an issue overshadowing this week's kickoff in Brazil.
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