I bought shares in Coca-Cola Amatil Ltd (ASX: CCL) when they were trading at $9.39, knowing full well that they could fall far below that level. After all, they had already tumbled nearly 40% since March 2013 and the pessimism in the market surrounding the stock made it seem like no one was really willing to take the risk!
And indeed they did continue to fall. They hit a low of $9.03 just over two weeks after I bought my stake and were showing every sign of going even lower.
But now, the stock is steadily climbing again, hitting a high of $9.68 today and putting me on a gain of 3.1%. While that's not a fantastic return from holding onto the stock for two-and-a-half months – it's only narrowly beaten the S&P/ASX 200's (Index: ^AXJO) (ASX: XJO) gain in that time – I'm still happy with its progress. In fact, I'm strongly considering buying more!
Thanks to the stock's fall in the last 16 months or so, it is still trading just above its lowest level since after the GFC. I truly do see this as being a once-in-a-lifetime opportunity for investors to be able to buy them again at such an attractive price!
Granted, the hardships facing the business are by no means a thing of the past. They still face pressures from Schweppes and supermarket giants Woolworths Limited (ASX: WOW) and Wesfarmers Ltd's (ASX: WES) Coles business, hurdles in Indonesia and a struggling SPC Ardmona division. But it should also be noted that it was when Coca-Cola Amatil's parent business, The Coca-Cola Company, was in a similar rut that Warren Buffett made one of his most successful acquisitions in his incredible history.
I should mention that there is still a chance Coca-Cola Amatil's shares could pull back from today's price, but my money is on the long-term prospects built into the company's incredible brand portfolio. As well as its new management team, which will focus on improving productivity and reducing costs, and therefore maximising shareholder value going forward.
Another ASX stock I am incredibly bullish on…
As previously noted, I already own a stake in the company and am willing to risk the possibility of short-term losses for the chance at incredible long-term gains.
There is actually another company which I am also strongly considering acquiring more shares of. I have already made a healthy profit on this stock and believe it has a long, long way to go before it starts to slow down.
