CCL (ASX) More positives ahead

Originally posted by chadshare ↑

Bought both CCL and WOW after their recent down turns. Both stocks have structural issues with Coke affected by CSD decline and WOW by low cost competitors. I prefer CCL as they are implementing a systematic and so far effective plan of non coke product roll out with the blue sky but problematic Indonesian operations.
Australia has a high probability of entering into recession in the next 12 to 24 months, which has been priced into the currency devaluation we are experiencing. This is why I believe defensive stocks with large dividends are preferential to" growth stocks" on high multiples or those dependent on discretionary spending. Both WOW and CCL generate income through non discretionary spending. In a recessionary environment this may favor lower cost competitors, but not always. Regardless, unlike a resource company, income will not decrease by a large amount and may increase in line with population growth independent of the general economy.
The other factor to consider is interest rates. We are likely to see interest rate drop to lows not seen before over the next few months. The search for yield will be again with CCL coming back into favor.

Anyway just a few thoughts.

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One major negative for this company is that The American parent will never let anyone else take over CCL if it goes bad like the Indonesian example they'll be there to take it if they can without a contest premium. Imo it's overvalued because of the coke brand mainly not because of the business fundamentals as a leader it can't do any more than cut minimal costs when dealing with bulk products like water or increase prices.

It's fanciful if anyone really believes this stock will do any better than say Westerners who are the ones who decide whether to stock their product or not and at what price. do your own real.research there are better blue chips about if that's where u want to be in although there are not many around anymore. If yiu want to show off to your mates that yiu hold a portfolio which includes CCL for looks and keeping up appearances well sure, but I'd suggest you buy an expensive watch or Lou Vitton bag and not waste it on CCL. Better to reassugn your money in Westfield imo. But it's my opinion and not investment advice. DYOR.

One major negative for this company is that The American parent...