spc funding solution, page-12

I agree that CCL will represent better value, once they stop downgrading the hell of their earnings and undermining the share price. At least one more downgrade is on its way by the look of SPC.

The company's big earnings negatives, the Australian soft drink price war and SPC, outweigh smaller Indonesia and beer positives. That may well change over time but the sp is hurting right here and now.

CCL has over half the mature Australian softdrink market so it is unlucky that the price war with Pepsi hits its earnings fair and square.

CCL will represent better value once it falls further and reflects a less bouyant PE ratio. The growth that such a high PE usually reflects isn't justified - the company's main market Australia is mature and in a price war. The high PE is the tell tale sign that shorters no doubt look for to identify overvalued shares set to fall further.

Coke had previously had a halo which has slipped of late. It has not recovered from its two previous downgrades and the sp has slipped lower to multi-year lows. What seems to have happened though is some froth has been removed and the high PE remains.