Is it time to buy Coca-Cola Amatil Ltd, Computershare Limited and ANZ Banking Group shares?

Credit: Bill Dan

Shares of Coca-Cola Amatil Ltd (ASX: CCL), Computershare Limited (ASX: CPU) and Australia and New Zealand Banking Group (ASX: ANZ) have been hit hard in recent months. Indeed, over the past six months, they’re down 12%, 13.5% and 27%, respectively. The broader S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) meanwhile is down 13.6%.

No doubt, some investors will be asking themselves if now is an ideal time to buy shares in each company.

Coca-Cola Amatil

Coca-Cola Amatil is Australia’s and five neighbouring countries’ distributor of Coca-Cola products. It is also the distributor of Beam labelled alcohol beverages in Australia and the owner of the SPC tinned fruit brand. Unfortunately, in recent years, the company has been unable to leverage its brand strength to power profits higher. Indeed, despite falling from over $15 in 2013 to just $8.24 today, shares – arguably – trade at only a small discount to intrinsic value.


Computershare is a leading share registry services business. That means it is the company that sits between you and the company in which you own shares. Despite the company achieving decent results over the last 10 years, a large part of Computershare’s appeal going forward is its ability to benefit from rising interest rates in the USA. The core registry business is also very defensive, with sticky revenues and a solid client base, while bolt-on acquisitions could help it grow market share.

ANZ Banking Group

Over the past 12 months, ANZ’s share price has had a disastrous run by anyone’s measure – falling 31%. The bank, which has ties to Asian markets, is currently reviewing its exposure to Asia thanks to the appointment of Shayne Elliot as CEO. In addition to its pains in Asia, ANZ is facing regulatory and cyclical pressures in the local market, where a pick up in bad debts and slowing credit growth is being forecast by some analysts.

Foolish takeaway

Coca-Cola Amatil has one of the world’s most powerful brands at its disposal but is facing a number of headwinds within its core beverage business locally. Given the slight margin of safety at its current price, savvy investors may prefer to wait for a more compelling entry point before buying shares. Computershare is a good defensive business to own in the current economic climate, in my opinion. Finally, ANZ – like all banks – is not a buy in my book, given the considerable headwinds it faces over the medium term.

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Motley Fool writer/analyst Owen Raszkiewicz owns shares of Computershare and has a financial interest in Coca-Cola Amatil. Owen welcomes -- and encourages -- your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia owns shares of Computershare. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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