Shareholders of embattled beverage distributor Coca-Cola Amatil Ltd (ASX: CCL) might just be starting to see the stock as a glass half-full. The shares have gained a further 11c or 1.16% today and an impressive 6.7% in the last three weeks to now be trading at $9.61.
You might even say they have a 'Sprite-ly' step about them…
Here are three reasons why the stock might be bubbling today:
- It seems confidence has largely returned to the market. The S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) is up 0.6% and is threatening to smash through its six-year high of 5,554 points and the gains have been widespread throughout the market. With Coca-Cola Amatil hovering just above a five-year low, investors may be jumping on the opportunity of a lifetime.
- Investors may be attracted to the stock's bumper dividend yield. While interest rates are likely to remain at their low of 2.5% for some time yet, its forecast 4.8% dividend yield is looking extremely tasty.
- Following a disastrous run, it is likely investors were nervous to pick up shares in the company. However, UBS recently upgraded its recommendation to 'Neutral' from 'Sell', which is an indicator that the worst times might now be in the past.
