There goes ASX 6000…
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) today plunged over 109 points, or 1.83%, to finish the day at just 5,838.60 points.
Whilst it can be gut-wrenching to see your shares nosedive for no particular reason, volatility can provide great buying opportunities for savvy investors focused on the long-term.
Indeed Coca-Cola Amatil Ltd (ASX: CCL), Telstra Corporation Ltd (ASX: TLS) and Woolworths Limited (ASX: WOW) each fell hard today despite no company specific news.
Could this be a bargain buying opportunity?
Coca-Cola Amatil – down 2.5%
Despite falling today, Coca-Cola Amatil shares have handily outperformed the market in 2015. It appears investors have grown more enthusiastic about the turnaround strategy of Australia's distributor of Coca-Cola and Beam branded products. After being sold down over the past two years the company's new CEO, Alison Watkins, has overseen the refreshment of its marketing campaign, new product launches and a big cash injection from parent, The Coca-Cola Company. With a 4.2% partially franked dividend, it's worthy of a second look.
Telstra Corporation Ltd – down 0.8%
Telstra shares have fallen although no significant company-specific news has been released from the $76 billion telecommunications giant. However, whilst it continues to target one third of group revenues from Asia by 2020, profit is expected to grow by just low-single digits in the 2015 financial year. For a company trading at a price-earnings (PE) ratio of 18x, investors may today have been reacting to the low growth outlook. Personally, I'm waiting for a meaningful pullback in Telstra's share price before hitting the buy button.
Woolworths – down 1.95%
Shares of supermarket giant Woolworths ended down 1.95% today and are currently 22% lower versus this time a year ago. Whilst the company continues to forecast respectable profit growth in the near future, my guess is the ongoing selloff has been fuelled by investors' concerns over the loss-making Masters home improvement business, ongoing growth from rival Wesfarmers Ltd (ASX: WES) and increasing competition from foreign supermarket chains, Aldi and Costco. However there's a chance these concerns may have been overdone. Investors choosing to buy Woolies shares at these prices will not only enjoy the relative safety of holding a blue chip stock, but are forecast to receive a fully franked dividend equivalent to a yield of 4.9%.
Should you buy Woolworths shares?
