CCLAY - Coca Cola bottler down under , operates in Australia, New Zealand and Indonesia. They have a great LT growth record but recently, pricing and cost pressure have compressed the margins, plus they had a goodwill writeoff on some noncore assets. They trade around ~8x EBITDA and ~13-14x earnings, 6% dividend yield. I bought some at 8.55$ and look to buy more.
Not terrible cheap but I think sooner or later they will get their mojo back. They operate in good markets and have very high market share in AU and NZ (60-70%), so I think they can withstand some competitive pressures. You get a nice dividend while you wait.
Graincorp is a similar situation - weak near term results and some competitive pressures, but very strong market position in grain handling and logistics. Book is about 7.5AUD and they trade ~8.25 AuD. Last year, ADM wanted to buy them out at 12.5 AuD, but the Australian government veto'd the deal. I don't own it yet, but if it goes to book, I am going to buy some. This is like Viterra all over. |
