Buy This Stock for Around the Same Price as Bill Ackman

While Bill Ackman's Pershing Square admittedly had a bad August, which put the hedge fund down on the year, the fact remains he still has the golden touch. Sans his speculative bets in the common shares of Fannie and Freddie (which he is about break-even on), you will be hard pressed to find any one of his portfolio stocks that he is not making a killing on, even with the recent pullback. There is one stock, however, that you can buy today for ALMOST the same price Ackman paid. It is also his latest.

The stock we are taking about is Mondelez Int'l (NASDAQ: MDLZ).

Data from Ackman's 13D shows that in total Ackman's fund controls 120,265,238 shares of MDLZ. Through various trades and forward purchase contracts, Ackman has 70,265,38 common shares at the moment that he owns at an average price of around $39. The other 50,000,000 shares are controlled through American-style call options. The call options' expiration dates range from March 3, 2017 to June 28, 2017 and the strike prices range from $36.64 to $41.39.

Currently, Mondelez trades for $42, so just a few percentage points above Ackman's cost basis.

Many expect a sale to be the end game for Mondelez. In fact, the CEO Irene Rosenfeld recently told the New York Post she would be keen to a sale of the company. Ackman is reportedly looking to push the company into a merger with 3G's Kraft Heinz (NYSE: KHC). However, recent comments from 3G partner Warren Buffett about the company's high price tag poured cold water on that notion.

Sale or not, Mondelez appears to be a good buy. Not only does it have Bill Ackman's seal of approval, earnings and organic revenue are growing. In the company's latest quarter, adjusted EPS rose 17.5%, or 37.5% on a constant-currency basis. While revenue was down 9.2%, due to the negative impact from currency, organic revenue still grew 4.3% in the quarter. To boot, the company increased its share repurchase authorization by $6.0 billion. This should just further bolster EPS.

In nearly every occasion, following Mr. Ackman into trades proved to be a solid bet. If you can enter for around the same price as he did, as is the case with Mondelez, your chances of success go up.

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