Coca-Cola Amatil Ltd

CCL Details
·         Weak update led the stock lower: Coca-Cola Amatil Ltd (ASX: CCL) stock lost over 10.5% on April 21, 2017. The group reported for a weaker Australian Beverages performance this year impacted by lower volumes and pricing pressure given the rising competition. On the other hand, the group’s performance at New Zealand & Fiji, Alcohol & Coffee and SPC is on track. Papua New Guinea is performing well but the Indonesia performance continues to face pressure. As a result, they expect a weak underlying (before non-trading items) net profit after tax for the first half 2017. However, the group has maintained their medium-term of mid-single-digit earnings per share (EPS) growth.

·         Recommendation: CCL stock rose over 8.6% in the last three months (as of April 20, 2017). The group had reported a market share buyback program of $350 million in February 2017 but will not proceed with the same until opening of trading on April 26, 2017. Otherwise, the buyback program might help bring some boost to the stock. Moreover, the group has been making structural changes to rebalance their portfolio adjusting to the market changes and believes these initiatives would gain traction. We maintain our “Hold” recommendation on this dividend yield stock at the current price of $ 9.61

Bulletproof Group Ltd

BPF Details
·         Management Changes: Bulletproof Group Ltd (ASX: BPF) stock fell over 8.6% on April 21, 2017 while the group announced for the appointment of Paula Kensington as Chief Financial Officer. The group’s Chief Operating Officer (COO), Mr. Mark Rainbird, resigned from the group to seek new opportunities. Mr. Rainbird has enabled the company to cut their operating cost base; re-structure the management, delivery and engineering teams; as well as enhance the governance components required for the company to start its next phase of sustainable, profitable revenue growth over the coming years.

·         Recommendation: Given the risks and current trading scenario, the stock is a highly “Speculative Buy” at the current price of $ 0.16


FY17 Guidance (Source: Company Reports)

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