Trading at just $9.62, Coca-Cola Amatil Ltd (ASX: CCL) is a stock you can't afford to let slip by. Although it has risen slightly over the last fortnight or so, its shares haven't traded at these levels since the aftermath of the GFC.
While its current price is compelling, these three key points are the dealmakers:
1. Very few companies can claim to have the competitive advantages possessed by the Coca-Cola brand. Warren Buffett, who idolises companies with wide 'moats', once said: "I like wonderful brands. If you take care of a great brand, it's forever."
2. Profits have been declining due to pricing pressures from rival Schweppes and supermarket behemoths Woolworths Limited (ASX: WOW) and Coles – owned by Wesfarmers Ltd (ASX: WES). The good news is, those problems appear to be short-term in nature, leaving an avenue for growth in the long run. That further highlights how attractive the shares are at their current price!
3. The group's new managing director, Alison Watkins, is implementing plenty of changes around the business. These changes will improve productivity and efficiency while they could also see costs fall by up to $100 million!
An even better bet than Coca-Cola Amatil
The company's bumper 5.2% dividend yield (franked to 75%) was the final element that was needed to convince me to buy, and I think you should too.
