In today’s daily we have covered stock research on Coca-Cola Amatil. To view Top 20 ASX Dividends and 3 Gold Stocks to Buy, please click on the link.

S&P 500 was up by 6.92 points or 0.38% to 1851.96 on Tuesday. U.S. stocks rose, with the Nasdaq 100 Index rebounding from its worst three-day drop since 2011, as technology shares from Google Inc. to Facebook Inc rallied.

The recent selloff came as valuations in technology stocks soared while the broader market touched all-time highs. The Nasdaq 100 surged 257 percent from its low in March 2009 through a 13-year high on March 5. That beat the 177 percent increase for the S&P 500 in the period. The S&P 500 closed at a record on April 2.

In China, the Shanghai Composite index jumped 1.9 per cent to a six-week high, while the Micex index in Moscow managed a 0.2 per cent advance – even as heightened separatist activity in eastern Ukraine prompted Kiev to accuse Russia of seeking to destabilize the region. Worries about the latest flare-up in tensions helped  Brent Crude rally $1.85 to settle at 107.67 a barrel, and was a factor behind a $12 rise in the gold price to $1,308 an ounce.


S&P 500 Daily Chart   (Source – Thomson Reuters)
 
S&P ASX 200was down 3.1 points or 0.06% and closed at 5410.60 points on Tuesday. Genworth Financial’s float of its $2 billion Australian mortgage insurance division has hit a snag because the US parent faces a lawsuit over allegations it misled investors over the outlook for the Australian business in 2012.

BHP Billitonhas shrugged off the deep malaise engulfing the Australian coal sector and is pushing on with the first leg of its application to build a 30-year underground mine in northern New South Wales. ASF Consortium, lead by Fife Capital Funds’s managing director Allan Fife, has unveiled plans for its $5 billion Broadwater Marine Project on the Gold Coast, including a cruise ship terminal and casino.


S&P ASX 200 Daily Chart (Source – Thomson Reuters)


The top gainers on ASX 200 were:-

Code	Name	Price	Change	%Change
MSB	MESOBLAST LIMITED	$4.96	$0.35	7.59%
TWE	TREASURY WINE ESTATES LIMITED	$3.87	$0.26	7.20%
AGO	ATLAS IRON LIMITED	$1.01	$0.05	4.66%
PNA	PANAUST LIMITED	$1.70	$0.08	4.63%
ARI	ARRIUM LIMITED	$1.37	$0.05	3.40%
NST	NORTHERN STAR RESOURCES LTD	$1.12	$0.04	3.23%
MGX	MOUNT GIBSON IRON LIMITED	$0.90	$0.03	2.86%

 
Top 20 ASX Dividends

3 Gold Stocks to Buy
 
 
Stock of the Day – Coca-Cola Amatil (CCL)

Coca-Cola Amatil Limited (CCA) with its subsidiaries is engaged in the manufacture, distribution and marketing of carbonated soft drinks, still and mineral waters, fruit juices, coffee and other alcohol-free beverages. CCA operates in four business segments: The Australia, New Zealand and Fiji, and Indonesia and PNG segments. CCA is also engaged in the processing and marketing of fruits, vegetables and other food products, and the manufacture and distribution of alcohol ready-to-drink products, and the distribution of premium spirits and beer brands. 

CCA announced a weak result for full year fiscal 2013 driven by soft volumes in the grocery channel. EBIT declined 6.9% before significant items which is at the low end of company’s 5% to 7% EBIT decline guided last November. Total revenue decreased 1.1% primarily because of a weaker year in the Australian beverage market which experienced a 2.7% decline in revenue. 


Source - CCL
 
Of particular concern is the performance of the grocery channel sales as aggressive competitor pricing and retailer destocking resulted in 8.2% decline in volumes. Amatil’s pricing is now at 49% premium to Pepsi Schweppes in the grocer channel up from 43% in the previous year.
  

CCL Daily Chart  (Source - Thomson Reuters)

We believe that the competitive environment is likely to deteriorate further in the short term with management noting further competitor price declines in the grocery channel in January. The main positives from the result are operating cash flow which was strong at AUD 733 million and the final dividend being maintained in line with the previous year. We believe the stock is overvalued at its current price and would review the stock at a later date.

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