With reporting season behind us and Q1 2015 updates and 'annual general meeting season' coming up, investors need to keep in touch with their companies to get their portfolios set for calendar year 2015.
Here are two companies I'm expecting some critical updates from this week:
Coca-Cola Amatil Ltd (ASX: CCL)
New CEO Alison Watkins is expected to report to the market on the fruits of her strategic review on Thursday this week.
Investors can generally expect cost cutting and a number of reforms to the business to improve productivity and reduce redundant positions, with a major question mark over the future of the company's Indonesian expansion.
Coca-Cola has already sunk over a billion dollars into the region, which has failed to deliver on its promise thanks to currency inflation and stiff competition from domestic low-cost bottlers.
Some analysts are tipping that CCA could divest its Mount Franklin brand in order to fund the additional investment required in Indonesia, while others predict that the company may sell half its stake in Indonesia and conduct the operation as a joint venture.
I personally hope that neither happens and that the company announces an increased focus on adjusting to changing consumer preferences in order to develop new and successful products.
Coca-Cola is expected to announce a stevia-sweetened beverage called Coke Life later this year, but with Coke Zero and Diet Coke already occupying the low-cal role, and with Pepsi Next beating stevia-Coke to the punch by over a year, I doubt if the new product is enough to turn the company around.
Amcom Telecommunications Limited (ASX: AMM)
Competitor Vocus Communications Limited (ASX: VOC) announced this morning that it had taken a 10% stake in Amcom, sending shares in the latter soaring 12.9% so far today.
Vocus has approached Amcom's board about combining the two companies, with Amcom shareholders to receive Vocus shares in return for their existing holdings.
While it is too early to make any kind of statement about the proposition with certainty, Vocus has a long record of growing through acquisitions and both companies are some of the most exciting in Australia's telecom sector.
They might never grow to rival Telstra Corporation Ltd (ASX: TLS), but together the combined entity would be worth over $1 billion dollars and have considerably greater growth potential – with even more potential coming once synergies between the two are identified.
Australia's technology and telecom industries are often overlooked by investors despite their fantastic record and potential for future growth, and I recommend readers watch the potential merger closely.
A fantastic, undervalued tech share for your growth portfolio..
