After witnessing CCL stock dropping to 2 year lows, I analyze both the fundamentals of the company and its long term view.
fundamentals: The dividend of CCL has grown over the last 10 years and its P/E is about 16, lower than that of Wow or wesfarmer.
SPC was not performing well for the past few years, but not necessarily a bad investment. why?
Long term view: Coca-Cola is a defensive stock that promise good dividend payout. Even if the demand for soft drinks is declining, the brand value and its diversification in various drinks, further enhanced through its SPC Ardmona investment makes it a valuable company. Not only it's a leader in beverage in Asia Pacific and supported by its parent company Coca-Cola (US), its brand value and innovation in marketing and portfolio mix will continually serves as keys and reinforces Coca-Cola Amatil status as the leading beverage company in Asia Pacific.
If the beverage industry is experiencing its down-turn, believe or not, there is always a light at the end of the tunnel, just like stock markets.
If you looking in investing in defensive stocks in beverage, why not buy shares in a company that you know will be still around for the next 50 years and that sells something we need/use every single day?
Some thoughts at this price !!!
CCL Price at posting:
$11.12 Sentiment: None Disclosure: Not Held
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