Coca-Cola Amatil Ltd (ASX: CCL) has managed to make a slight gain this week, with its shares up 26c or 2.8% at $9.41 apiece.
Although it was only a slight outperformance of the S&P/ASX 200 Index's (Index: ^AXJO) (ASX: XJO), which rose 0.4%, it was still a small victory for shareholders. Shareholders have watched the stock plummet over the last 12 months thanks, in part, to pricing pressures from Schweppes, Woolworths Limited (ASX: WOW) and Coles, owned by Wesfarmers Ltd (ASX: WES).
Here are 3 reasons why the shares have risen:
1. Conservative Approach. The Group's new managing director, Alison Watkins, will take a more conservative approach to growing profits than her predecessor Terry Davis. She suggested that long-term profit growth targets may be closer to 5%, which, although not as ambitious as Davis' targets, is more achievable.
2. Re-organised. Coca-Cola Amatil has also announced plans to re-organise and simplify the business. Its Australian non-alcoholic and alcoholic units will be split apart, which will ensure greater focus and productivity.
3. Incredible price. The last time Coca-Cola Amatil's shares were trading at these prices was in 2009, as they were recovering from the depths of the GFC. Long-term focused investors might now be seeing the amazing opportunity they are being presented with.
