Margins are down and cost base up.....next catalyst will be the agm to see if the strategic review yields cuts to the cost base. Most brokers expecting big cuts to be announced then. If big cuts are not announcd then i reckon there will be another wave of selling.
Also buying shares in cca is not the same as buying shares in coca cola as a poster here mentioned in the context of warren buffet backing it. Cca does not own the coke brand......it just has a license to manufacture and sell it here. It bottles the drink after buying syrup from coca cola.....so Essentially sellling syrup and ownng a brand is very different to using it and then selling it after a margin.
Also cca is facing strong competitn from big cola in indonesia and facing a rising cost base there.
Company has high debt but high cash flows and a good balance sheet. Anyway i dont have a position yet but will be eagerly waiting yo see what comes out of the strategic review at the agm before i get in.
CCL Price at posting:
$9.41 Sentiment: Hold Disclosure: Not Held
