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3 buying opportunities as the market recovers

Although it was a shaky start to the new year for the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO), it seems the market might be settling having posted four consecutive days of gains.

While the local market was spurred by a strong quarterly result for Australia and New Zealand Banking Group (ASX: ANZ) in yesterday’s session, it has also benefited from reports of improved business conditions by National Australia Bank Ltd (ASX: NAB), as well as strong offshore leads with Wall Street continuing to recover despite a smaller-than-expected rise in US employment in January.

Since hitting a low of 5052.2 points on Wednesday last week, the ASX 200 has surged over 200 points or 4% and is sitting just 1.8% below where it began the year at 5352.2 points. Although investors may have missed out on picking up stocks while they were at their lowest, there are still plenty of opportunities to snap up! Here are three companies which I believe are still trading at very attractive prices:

Coca-Cola Amatil Ltd (ASX: CCL): The beverage manufacturer heavily underperformed the broader market in 2013, as it aggressively discounted its products to compete with rival Schweppes, however, there are signs that suggest the pricing war could be over. While it is expected the company’s net profit will fall by 7.5% when it reports full-year results next week, the long-term prospects are looking much brighter as it looks set to continue expanding in Indonesia. Shares are trading at $11.76 which is almost 24% below its 52-week high, making now an excellent time to buy.

Telstra Corporation Ltd (ASX: TLS): The telecommunications giant has had a stellar run over the last three years but still has enormous growth prospects ahead of it, as the reliance of individuals and businesses on smartphones and the internet continues to grow. Shares are still sitting nearly 5% below their $5.30 high at just $5.05 and offer a trailing fully franked 5.6% dividend yield.

Select Harvests Limited (ASX: SHV): The almond producer achieved a fresh five-and-a-half-year high of $6.58 yesterday, as the market continued to recognise its potential. The company has focused on reducing costs and increasing production while a drought in California (the world’s largest producing region) continues to push almond prices skywards. Although shares have gained over 260% over the last 12 months, I believe there are still significant gains to be realised.

Foolish takeaway

While many in the market remain cautious that another plunge could be just around the corner, investors should focus on the long-term and take advantage by buying discounted shares.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

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