Guy Buys Coke ($8.1 million worth)
The economy, still in the dump, is mostly holding the line in recent months, neither improving nor falling dramatically. This does not mean we are in the midst of recovery or that the recession is going to get worst–it simply means things are staying bad.
Still, in the midst of that situation, some people are finding reason to be optimistic and make risky moves.
Shares of Coca Cola slumped after the company announced it would be buying part of its largest bottler. But at least one savvy insider has taken the decline as a chance to stock up on $8.1 million in Coca-Cola shares.
Herbert A. Allen, a director at Coca-Cola, bought 152,080 shares for an average price of $52.95 on March 1. The shares were purchased by Allen’s New York-based private-investment firm Allen & Co.
Allen is a smart guy, buying shares of Coke at a low-time so that he’ll profit long time. The old adage is “Buy Low, Sell High.”