Review takes fizz out of Coca-Cola

Review takes fizz out of Coca-Cola. Companies undergoing strategic reviews usually underperform for some time, reflecting entrenched legacy problems and the breadth and difficulty of corporate overhauls. Coca-Cola Amatil's (CCL) review was triggered by increasing competition, loss of pricing power, cost problems and a lack of product innovation. Although we are confident in an eventual recovery in the Australian business, this is some time away with new management's review only in its early stages. It will be some months at least until CCL's full response to its problems is announced, implemented and can be evaluated. Our FY15 valuation is $9.35 and we recommend buying only at a 10% discount to this valuation, or below $8.42. Read the full article by Daviw Walker published in Eureka Report (VIEW LINK)