What: On a day where the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has edged slightly higher, shares in Coca-Cola Amatil Ltd (ASX: CCL) appear to have lost their fizz, dropping 10c or 1% to be trading at just $9.43. The fall came after Macquarie cut their rating from neutral to underperform.
So What: Today's drop is certainly disappointing for shareholders, who have already watched their stock plummet nearly 39% since their all-time high of $15.40 in March 2013. It is made even more disappointing by the fact that UBS recently upgraded the stock from Sell to Neutral, which indicated that the worst of the storm may have passed over us (I say us, because I too am a shareholder).
Now What: I bought the stock just over two-and-a-half months ago when it was trading at $9.39, knowing full well that it could drop far below the price I was paying for it. I accepted (and still do) that the issues facing the business, such as pressures from Woolworths Limited (ASX: WOW) and Wesfarmers Ltd's (ASX: WES) Coles, were not a thing of the past, but would still need to be dealt with over the coming periods.
While I would love to watch the stock climb in value and never look back, I know there is no quick-fix. While today's downgraded recommendation will see some shareholders jump ship, I'm holding firm and putting my trust behind the strengths of the brand and management team to lead the stock to greener pastures in the long term.
An even better bet than Coca-Cola Amatil
I am a proud holder of Coca-Cola Amatil's shares and intend to hold onto them well into the future.
