Packaging and Containers Sector Ideas

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>>> UFP Industries, Inc. (UFPI), through its subsidiaries, designs, manufactures, and markets wood and non-wood composites, and other materials in North America, Europe, Asia, and Australia. It operates through Retail, Packaging, and Construction segments.

The Retail segment offers treated lumber products, including decking, fencing, lattice, and other products; pressure-treated and fire-retardant products used primarily for outdoor decking environments; and lawn and garden products, consisting of wood and vinyl fencing options, garden beds and planters, pergolas, picnic tables, and other landscaping products. This segment also offers wood plastic composites, composite decking, and related decking accessories, including non- aluminum railing systems, balusters, post caps, and other products, as well as pre-painted and primed shiplap and project boards.

The Packaging segment provides custom and structural packaging products, pallets, corrugate, foam, labels, strapping, and films.

The construction segment offers roof trusses, cut-to-size dimensional and board lumber, plywoods, and oriented strand boards; engineered wood components, including roof and floor trusses, wall panels, I-joists, and lumber packages; and alternate materials components, such as metal trusses, sheathed and pre-finished light gauge metal wall panels, aluminum decks, and rail accessories, as well as distributes siding, electrical, and plumbing products. This segment also engages in the manufacture of components; design, manufacture, and supply of wood forms and related products to set or form concrete for structures, such as parking garages, stadiums, and other infrastructure projects. It also offers interior fixtures, millwork, and casework for retail and commercial structures.

The company was formerly known as Universal Forest Products, Inc. and changed its name to UFP Industries, Inc. in April 2020. UFP Industries, Inc. was incorporated in 1955 and is headquartered in Grand Rapids, Michigan.

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https://finance.yahoo.com/quote/UFPI/profile/

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>>> Packaging Corporation of America (PKG) manufactures and sells containerboard and corrugated packaging products in the United States. The company operates through three segments: Packaging, Paper, and Corporate and Other.

The Packaging segment offers various containerboard and corrugated packaging products, such as conventional shipping containers used to protect and transport manufactured goods; multi-color boxes and displays that help to merchandise the packaged product in retail locations; and honeycomb protective packaging products, as well as packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. This segment sells its corrugated products through a direct sales and marketing organization, independent brokers, and distribution partners.

The Paper segment manufactures and sells commodity and specialty papers, as well as communication papers, including cut-size office papers, and printing and converting papers. This segment sells white papers through its sales and marketing organization.

The Corporate and Other segment includes corporate support staff services and related assets and liabilities; and transportation assets, such as rail cars and trucks for transportation.

Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois.

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https://finance.yahoo.com/quote/PKG/profile/

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>>> UFP Technologies Acquires Welch Fluorocarbon


UFP Technologies, Inc.

Jul 16, 2024


https://finance.yahoo.com/news/ufp-technologies-acquires-welch-fluorocarbon-200000577.html


NEWBURYPORT, Mass., July 16, 2024 (GLOBE NEWSWIRE) -- UFP Technologies, Inc. (Nasdaq: UFPT), a designer and custom manufacturer of comprehensive solutions for medical devices, sterile packaging, and other highly engineered custom products, today announced the acquisition of Welch Fluorocarbon Inc. Founded in 1985 and headquartered in Dover, New Hampshire, Welch Fluorocarbon develops and manufactures thermoformed, and heat sealed implantable medical device components utilizing thin, high-performance films.

“Welch Fluorocarbon will bring significant thin film thermoforming capabilities to our expanding MedTech portfolio of technologies and materials,” said R. Jeffrey Bailly, chairman and CEO of UFP Technologies. “Their expertise in developing and manufacturing components for implantable medical devices is an excellent complement to our existing thin film platform.”

“UFP and Welch Fluorocarbon share many clients and together, our expanded product development and manufacturing capabilities will allow us to serve our clients in a more comprehensive way,” continued Bailly. “Additionally, we are gaining a talented leadership team and overall, the Welch Fluorocarbon team is a very strong cultural fit.”

“We are thrilled to have selected UFP as our new home. Having a partner that understands how to support our rapidly expanding business in our niche is critical. UFP has demonstrated that they understand our needs and have the capabilities, experience, and resources to help propel Welch to its fullest potential,” said Kevin Wiley, Owner and CEO.

About UFP Technologies, Inc.

UFP Technologies is a designer and custom manufacturer of comprehensive solutions for medical devices, sterile packaging, and other highly engineered custom products. UFP is an important link in the medical device supply chain and a valued outsource partner to most of the top medical device manufacturers in the world. The Company’s single-use and single-patient devices and components are used in a wide range of medical devices and packaging for minimally invasive surgery, infection prevention, wound care, wearables, orthopedic soft goods, and orthopedic implants.

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>>> Avery Dennison Corporation (AVY) operates as a materials science and digital identification solutions company in the United States, Europe, the Middle East, North Africa, Asia, Latin, America, and internationally. It provides pressure-sensitive materials comprising papers, plastic films, metal foils, and fabrics; performance tapes products, including tapes for wire harnessing, as well as cable wrapping for automotive, electrical, and general industrial applications; mechanical fasteners, which are precision-extruded and injection-molded plastic devices used in various automotive, general industrial, and retail applications; and other pressure-sensitive adhesive-based materials and converted products under the Fasson, JAC, Yongle, and Avery Dennison brands.

The company also offers graphics and reflective products for the architectural, commercial sign, digital printing, and other related market segments; durable cast and reflective films to the construction, automotive, and fleet transportation market segments; reflective films for traffic and safety applications; and pressure-sensitive vinyl and specialty materials designed for digital imaging, screen printing, and sign cutting applications under the Avery Dennison and Mactac brand names.

In addition, it provides branding solutions include brand embellishments, graphic tickets, tags, and labels, and sustainable packaging; and information solutions include item-level RFID, visibility and loss prevention, price ticketing and marking, productivity and media solutions, and brand protection and security solutions, as well as care, content, and country of origin compliance solutions. It serves home and personal care, apparel, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive industries. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. Avery Dennison Corporation was founded in 1935 and is headquartered in Mentor, Ohio.

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>>> UFP Global Holdings Ltd. acquires controlling interest in Palets Suller Group


Business Wire

September 20, 2023


https://finance.yahoo.com/news/ufp-global-holdings-ltd-acquires-200500660.html


GRAND RAPIDS, Mich., September 20, 2023--(BUSINESS WIRE)--UFP Global Holdings Ltd., a subsidiary of UFP Industries, Inc. (Nasdaq: UFPI), has acquired 80 percent of the equity in a newly formed company, UFP Palets y Embalajes SL, for approximately $52 million USD. UFP Palets is comprised of the former pallet manufacturing operations of Palets Suller SL, Serrería y Palets Chiva SL and Drevex Castellón SL, collectively known as Palets Suller Group. The company had trailing 12-month sales of approximately $38 million USD through August 2023.

Headquartered in Castellón, Spain, Palets Suller is the market leader in machine-built wood pallets, serving the region’s ceramic tile industry as well as other industries. Spain is one of the largest ceramic tile manufacturing export markets in the world. Founder and CEO Samuel Suller Oliver will retain a 20 percent stake in the company and continue as executive director, managing the day-to-day operations. He will be joined by UFP veteran Alex Kladt, who will work with the Palets Suller leadership team to scale the business and achieve operating synergies.

"Palets Suller provides a strong foundation to expand into Spain and grow our value-added packaging business in Europe," said Dick McBride, UFP Global’s executive vice president. "Samuel and his experienced team have built an impressive and efficient business, and we look forward to learning from them and helping them expand into new markets. This is another step in our goal to be the preferred global packaging solutions provider."

"We are excited to join the UFP Industries family of companies and eager to pursue the new business opportunities this combination will bring to us," said Samuel Suller Oliver. "We’re pleased for our people, who will have new opportunities for growth and the rewards that come with being part of a large, successful multinational corporation. And we’re pleased for our customers because we will be able to offer the same quality products and level of service they’ve grown to expect from us, while adding new products and support from the capabilities of other UFP companies."

UFP Industries, Inc.

UFP Industries is a holding company whose operating segments – UFP Packaging, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. UFP Industries is ranked #403 on the Fortune 500 and #149 on Industry Week’s list of America’s Largest Manufacturers.

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>>> Amcor plc (AMCR)


https://finance.yahoo.com/news/11-best-packaging-stocks-buy-202837768.html


Number of Hedge Fund Holders: 22

Amcor plc (NYSE:AMCR) is a multinational packaging company that provides a wide range of packaging solutions and services. The company manufactures flexibles, rigid plastics, specialty cartons, and other packaging products. The company remained committed to its shareholder return in its fiscal Q3 2023, as it returned $745 million to shareholders through dividends and share repurchases. Its revenue for the quarter came in at $3.6 billion, declining by 1.1% from the same period last year.

One of the best packaging stocks, Amcor plc (NYSE:AMCR) has been growing its dividends consistently for the past 39 years. It currently pays a quarterly dividend of $0.1225 per share for a dividend yield of 4.86%, as of July 4.

At the end of March 31, 22 hedge funds in Insider Monkey's database owned stakes in Amcor plc (NYSE:AMCR), worth collectively over $244.5 million. With roughly 15 million shares, Polaris Capital Management is the company's leading stakeholder in Q1.

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UFP Technologies (UFPT) - >>> Don’t sleep on medical device maker UFP Technologies. The Newburyport, Massachusetts company has been around since 1963 and UFPT stock has been a long-term gainer. In fact, as portfolio manager Eddy Elfenbein notes, the share price has increased 150-fold over the past two decades. “That’s enough to turn $7,000 into over $1 million,” Elfenbein writes.


https://finance.yahoo.com/news/7-stocks-watch-looking-next-005316983.html


The company operates in a niche market for medical devices and its strong position in that market is reflected in its earnings. In the third quarter of 2022, UFP’s sales grew 91% year over year, while organic sales rose 21.7% and operating income swelled by 37%. Earnings per share rose 173% to $1.36, trouncing analyst estimates of 94 cents a share. The company is expected to report Q4 and full-year results in early March.

Stellar earnings have propelled UFPT stock higher both in the short and long term. Despite a 7% year-to-date decline over the past 12 months, the share price has risen 51%. Over the past five years, the stock is up nearly 283%.

UFP Technologies doesn’t offer a dividend, but its current price-earnings ratio of 23 looks fair given the company’s consistent earnings growth and its share price appreciation.

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>>> UFP Technologies Announces Record 2022 Results


UFP Technologies, Inc.

March 7, 2023


https://finance.yahoo.com/news/ufp-technologies-announces-record-2022-135900481.html

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NEWBURYPORT, Mass., March 07, 2023 (GLOBE NEWSWIRE) -- UFP Technologies, Inc. (Nasdaq: UFPT), a designer and custom manufacturer of engineered solutions primarily for the medical market, today reported net income of $41.8 million or $5.45 per diluted common share outstanding for its year ended December 31, 2022, compared to net income of $15.9 million or $2.09 per diluted common share outstanding for 2021. Net Sales for 2022 were $353.8 million compared to 2021 sales of $206.3 million.

For its fourth quarter ended December 31, 2022, the Company reported net income of $8.5 million or $1.10 per diluted common share outstanding, compared to $3.2 million or $0.42 per diluted common share outstanding in the same period of 2021. Sales for the fourth quarter 2022 were $91.2 million versus 2021 fourth quarter sales of $56.3 million.

“I am very pleased with our 2022 results, as sales grew 72% and EPS grew 160%,” said R. Jeffrey Bailly, Chairman & CEO. “We integrated two key acquisitions completed at the end of 2021, DAS Medical in the Dominican Republic and Contech Medical in Rhode Island and Costa Rica. We also completed and integrated another major acquisition, Advant Medical, which brought us a key strategic location in Galway, Ireland along with new capabilities and many important synergies. Each acquisition has performed above our expectations and made us more valuable to our customers. In addition, we completed our factory start-up in Tijuana, Mexico, transitioning from a dirt field to a completed facility shipping production parts in just eight months. We certified our quality system and launched our first program ahead of schedule and under budget.”

“Amid all this exciting activity, our base business grew organically at an impressive 18.6% in 2022,” said Bailly. “And operating income grew by 161%, or 106% after eliminating non-operational items, such as acquisition earnout adjustments and gains on the sale of real estate and our Molded Fiber division, which we sold to tighten our focus on our fastest-growing market opportunities.”

“I am very proud of the UFP team, which grew substantially in 2022 and now totals approximately 3,000 associates,” Bailly added. “They worked incredibly hard navigating challenging supply chain issues and a difficult labor market, and delivered excellent results. Looking ahead, I am very bullish about our future as we continue to realize acquisition synergies and gain the benefits of our recent investments in new clean rooms, production capacity, talent and more. And with only about $55 million in debt, our balance sheet remains strong, allowing us to execute additional internal and external growth initiatives.”

Financial Highlights:

Sales for the fourth quarter increased 61.9% to $91.2 million, from $56.3 million in the same period of 2021. Sales for the full year of 2022 increased 71.5% to $353.8 million from $206.3 million in the same period of 2021.

Fourth quarter sales to the medical market increased 108.0%. Sales to all other markets decreased 28.5% to $13.5 million, largely due to the sale of Molded Fiber. Year-to-date sales to the medical market increased 116.0% to $286.2 million. Sales to all other markets decreased 8.4% to $67.6 million.

Gross profit as a percentage of sales (“gross margin”) increased to 25.5% for the fourth quarter, from 23.2% in the same quarter of 2021. Gross margin for the full year of 2022 increased to 25.5%, from 24.8% in the same period of 2021.

Selling, general and administrative expenses (“SG&A”) for the fourth quarter increased 46.1% to $11.9 million compared to $8.1 million in the same quarter of 2021. Full year 2022 SG&A increased 55.3% to $45.8 million, from $29.5 million in the same period of 2021.

For the fourth quarter, operating income increased to $10.9 million, from $4.6 million in the same quarter of 2021. Full year 2022 operating income increased to $55.4 million, from $21.2 million in the same period of 2021, and adjusted operating income increased to $44.5 million, from $21.6 million. See the reconciliation provided in Table 1. Adjusted Operating Income is a financial measure not presented in accordance with generally accepted accounting principles ("GAAP") (a "Non-GAAP Financial Measure"). Please see "Non-GAAP Financial Information" at the end of this news release.

Net income increased to $8.5 million in the fourth quarter, from $3.2 million in the same period of 2021. Full year 2022 net income increased to $41.8 million, from $15.9 million in the same period of 2021.

EBITDA for the year ended December 31, 2022 increased to $70.6 million from $32.1 million in the same period of 2021, and adjusted EBITDA increased to $59.6 million from $32.5 million. See the reconciliation provided in Table 2. EBITDA and Adjusted EBITDA are Non-GAAP Financial Measures. Please see "Non-GAAP Financial Information" at the end of this news release.

About UFP Technologies, Inc.

UFP Technologies is a designer and custom manufacturer of engineered solutions primarily for the medical market. Utilizing highly specialized foams, films and plastics, UFP converts raw materials through laminating, molding, radio frequency welding and fabricating techniques. The Company is diversified by also providing highly engineered solutions to customers in the aerospace & defense, automotive, and industrial markets.

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>>> Top Dividend Champion #2: Sonoco Products Company (SON)


https://www.suredividend.com/dividend-champions-list/


5-year expected returns: 18.2%

Sonoco Products provides packaging, industrial products and supply chain services to its customers. The markets that use the company’s products include those in the appliances, electronics, beverage, construction and food industries. The company generates about $7.2 billion in annual sales.

Sonoco Products is now composed of 2 core segments, Consumer Packaging and Industrial Packaging, with all other businesses listed as “all other”.

On October 31st, 2022, Sonoco Products reported third quarter earnings results for the period ending October 2nd, 2022. Revenue was higher by 34% to $1.89 billion, but missed estimate by $10 million. Adjusted earnings-per-share of $1.60 compared very favorably to $0.91 in the prior year and was $0.21 better than expected.

Consumer Packaging revenues surged 72% to $990.1 million, due once again primarily to the purchase of Ball Metalpack that closed in the fourth quarter of 2021. Pricing, favorable volume and mix, and currency exchange headwinds also impacted results. Global rigid paper containers and flexible packaging performed well. Industrial Paper Packing sales grew 4% to $661 million as higher selling prices more than offset a small volume decline and currency exchange headwinds.

Sonoco Products raised its outlook for 2022 as well, with the company expecting adjusted earnings-per-share of $6.40 to $6.50 for the year, up from $6.20 to $6.30.

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>>> Graphic Packaging Holding Company (GPK), together with its subsidiaries, provides fiber-based packaging solutions to food, beverage, foodservice, and other consumer products companies. It operates through three segments: Paperboard Mills, Americas Paperboard Packaging, and Europe Paperboard Packaging. The company offers coated unbleached kraft (CUK), coated recycled paperboard (CRB), and solid bleached sulfate paperboard (SBS) to various paperboard packaging converters and brokers; and paperboard packaging products, such as folding cartons, cups, lids, and food containers primarily to consumer packaged goods, quick-service restaurants, and foodservice companies; and barrier packaging products that protect against moisture, hot and cold temperature, grease, oil, oxygen, sunlight, insects, and other potential product-damaging factors. It also offers various laminated, coated, and printed packaging structures that are produced from its CUK, CRB, and SBS, as well as other grades of paperboards that are purchased from third-party suppliers; designs and manufactures specialized packaging machines that package bottles and cans, and non-beverage consumer products; and installs its packaging machines at customer plants and provides support, service, and performance monitoring of the machines. The company markets its products primarily through sales offices and broker arrangements with third parties in the Americas, Europe, and the Asia Pacific. Graphic Packaging Holding Company was incorporated in 2007 and is headquartered in Atlanta, Georgia.

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>>> Packaging Corporation of America (PKG) manufactures and sells containerboard and corrugated packaging products in the United States. The company operates through Packaging and Paper segments. The Packaging segment offers various containerboard and corrugated packaging products, such as conventional shipping containers used to protect and transport manufactured goods; multi-color boxes and displays that help to merchandise the packaged product in retail locations; and honeycomb protective packaging products, as well as packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. This segment sells its corrugated products through a direct sales and marketing organization, independent brokers, and distribution partners. The Paper segment manufactures and sells commodity and specialty papers, as well as communication papers, including cut-size office papers, and printing and converting papers. This segment sells white papers through its sales and marketing organization. Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois.

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>>> Aptar Named One of Barron’s 100 Most Sustainable Companies in the U.S. for the Fourth Consecutive Year


BusinessWire

February 21, 2022


https://finance.yahoo.com/news/aptar-named-one-barron-100-220000004.html


CRYSTAL LAKE, Ill., February 21, 2022--(BUSINESS WIRE)--AptarGroup, Inc. (NYSE: ATR), a global leader in drug delivery, consumer product dispensing and active material science solutions, has again been named one of Barron’s 100 Most Sustainable Companies. Aptar is ranked number 70 for 2022 and this marks the fourth consecutive year Aptar has been included on Barron’s esteemed list.

"We are proud to once again be named one of Barron’s 100 Most Sustainable Companies due to our continued progress in key sustainability areas such as managing our suppliers and water risk," said Stephan Tanda, Aptar President and CEO. "We are committed to evolving our business in a sustainable way and to always doing what is best for the planet, our people and our shareholders."

The Company’s focus on eco-design of products and science-based targets is aligned to that of its partners such as the Ellen MacArthur Foundation, the World Business Council for Sustainable Development and many other organizations who are working towards a more circular economy. Aptar is also an active member of the United Nations Global Compact and the CE100 Network. Aptar recently received the Platinum level rating in recognition of its sustainability efforts from EcoVadis, which places Aptar among the top 1% of the nearly 85,000 companies rated by EcoVadis across all industries.

This is the fifth year Barron’s has published its list of companies with the highest ESG (Environmental, Social and Governance) scores. The Calvert Research and Management firm evaluated the 1,000 largest publicly traded companies by market value, then ranked each by how they performed for five key constituencies: shareholders, employees, customers, community and the planet. Next, Calvert looked at top companies in 230 ESG performance indicators including workplace diversity, data security and green-house gas emissions. Barron’s full list of 100 Most Sustainable Companies can be found here.

About Aptar

Aptar is a global leader in the design and manufacturing of a broad range of drug delivery, consumer product dispensing and active material science solutions. Aptar’s innovative solutions and services serve a variety of end markets including pharmaceutical, beauty, personal care, home care, food and beverage. Using insights, proprietary design, engineering and science to create dispensing, dosing and protective technologies for many of the world’s leading brands, Aptar in turn makes a meaningful difference in the lives, looks, health and homes of millions of patients and consumers around the world. Aptar is headquartered in Crystal Lake, Illinois and has 13,000 dedicated employees in 20 countries.

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>>> Greif, Inc. (GEF) produces and sells industrial packaging products and services worldwide. It operates through four segments: Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products & Services; and Land Management. The Rigid Industrial Packaging & Services segment offers rigid industrial packaging products, including steel, fiber, and plastic drums; rigid intermediate bulk containers; closure systems for industrial packaging products; transit protection products; water bottles, and remanufactured and reconditioned industrial containers; and services, such as container life cycle management, filling, logistics, warehousing, and other packaging services. This segment sells its products to customers in the chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agricultural, pharmaceutical and minerals, and other industries. The Paper Packaging & Services segment provides containerboards, corrugated sheets, corrugated containers, and other corrugated and specialty products to customers in the packaging, automotive, food, and building products markets. This segment's corrugated container products are used to ship various products, such as home appliances, small machinery, grocery products, automotive components, books, and furniture, as well as various other applications. The Flexible Products & Services segment offers flexible intermediate bulk containers comprising polypropylene-based woven fabric, as well as related services to the agricultural, food, and other industries. The Land Management segment engages in harvesting and regeneration of timber properties; and sale of timberland and special use land. As of October 31, 2020, this segment owned approximately 244,000 acres of timber property in the southeastern United States. The company was formerly known as Greif Bros. Corporation and changed its name to Greif, Inc. in 2001. Greif, Inc. was founded in 1877 and is based in Delaware, Ohio.

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>>> Berry Global Group, Inc. (BERY) manufactures and supplies non-woven, flexible, and rigid products in consumer and industrial end markets. Its Consumer Packaging International segment offers closures, dispensing systems, and applicators; inhalers and dose counters; polythene films; packaging solutions for consumer and industrial applications in personal care, beverage, and food markets; injection molded and thermoformed containers, and lids; and molds and molded components, as well as recycles rigid and flexible end of life materials from industrial and consumer sources. Its Consumer Packaging North America segment provides containers and pails for branded and private label customers; lightweight polypropylene cups and lids for hot and cold beverages; child-resistant, continuous-thread, and tamper closures, as well as aerosol overcaps; bottles and prescription vials; and extruded and laminate tubes. Its Engineered Materials segment offers engineered materials, including stretch and shrink films, and converter films; trash-can liners and food bags; cloth and foil, splicing and laminating, flame-retardant, flashing and seaming tapes, double-faced cloth, masking, mounting, OEM, and medical and specialty tapes; and food and consumer films, retail bags, and agriculture films. Its Health, Hygiene & Specialties segment provides medical garment materials, surgical drapes, household cleaning wipes, and face masks for infection prevention; components for baby diapers, adult incontinence, and other absorbent hygiene products, elastic films and laminates, and substrates for dryer sheets; and products and components for geosynthetics and filtration products. The company sells its products through direct sales force of professionals and distributors in the United States, Canada, Europe, and internally. The company was formerly known as Berry Plastics Group, Inc. and changed its name to Berry Global Group, Inc. in April 2017. Berry Global Group, Inc. was founded in 1967 and is headquartered in Evansville, Indiana.

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>>> Sealed Air Corporation (SEE) provides food safety and security, and product protection solutions and equipment in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Food and Protective. The Food segment offers integrated packaging materials and automation equipment solutions to provide food safety and shelf life extension, automate processes, and optimize total cost for perishable food processors in the fresh red meat, smoked and processed meats, poultry, seafood, plant-based, and dairy markets under the Cryovac, Cryovac Grip & Tear, Cryovac Darfresh, Cryovac Mirabella, Simple Steps, and Optidure brands. This segment sells its solutions directly to customers through its sales, marketing, and customer service personnel. The Protective segment provides foam, corrugated, molded pulp, and wood packaging solutions to protect goods in shipping for the e-commerce, consumer goods, pharmaceutical and medical devices, and industrial manufacturing markets under the Bubble Wrap, Autobag, Sealed Air, Instapak, Korrvu, Kevothermal, and TempGuard brands. This segment sells its solutions through supply distributors, as well as directly to fabricators, original equipment manufacturers, contract manufacturers, third-party logistics partners, e-commerce/fulfillment operations, and retail centers. Sealed Air Corporation was founded in 1960 and is headquartered in Charlotte, North Carolina.

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>>> Amcor plc (AMCR) develops, produces, and sells packaging products for food, beverage, pharmaceutical, medical, home- and personal-care, and other products worldwide. It operates through two segments, Flexibles and Rigid Packaging. The company provides flexible packaging solutions, special cartons, plastic bottles and jars, and capsules and closures. The company was incorporated in 1926 and is headquartered in Zürich, Switzerland.

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>>> 5 Packaging Stocks to Watch as Strong Demand Drives the Industry


Zacks

by Madhurima Das

July 7, 2021


https://finance.yahoo.com/news/5-packaging-stocks-watch-strong-125412908.html


The Zacks Containers – Paper and Packaging industry is benefiting from robust demand for food, beverage and hygiene products triggered by the coronavirus pandemic as packaging is integral to the distribution of these products. The industry is also gaining from the booming e-commerce activities as customers prefer staying indoors. Further, rising demand for sustainable and eco-friendly packaging options due to increasing environmental concerns will keep driving growth for the industry.

Companies like Amcor plc (AMCR), Packaging Corporation of America (PKG), Sealed Air Corporation (SEE), Berry Global Group, Inc. (BERY) and Greif, Inc. (GEF) are poised well to benefit from these trends.

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>>> AptarGroup (ATR) Eyeing Voluntis to Expand in Digital Therapeutics


Zacks Equity Research

June 23, 2021


https://finance.yahoo.com/news/aptargroup-atr-eyeing-voluntis-expand-152703648.html


AptarGroup, Inc. ATR is in discussions to acquire Voluntis in a bid to expand its digital therapeutic solutions and digital health services across various chronic conditions and diseases.

Digital therapeutics (DTx) help patients and caregivers treat or prevent diseases through evidence-based interventions supported by high quality software solutions. DTx is used independently or in connection with medications, devices and other therapies to enhance patient care and health outcomes.

Voluntis’ Theraxium platform helps patients manage their treatment with assistance from healthcare providers. This platform provides real-time decision support for an extensive range of chronic diseases, while enabling healthcare providers to remotely monitor the patient’s treatment process and the development of the disease.

This buyout will provide AptarGroup an immediate access to an established proprietary platform and algorithms, which will enhance digital solutions for biotech and pharmaceutical customers as well as other healthcare investors. The company will be able to serve patients and healthcare professionals with a varied range of effective tools to improve clinical outcomes by combining digital therapeutics with AptarGroup’s existing digital health portfolio of connected devices.

This strategic investment will help expand AptarGroup’s digital healthcare offerings and drive innovation in the healthcare space. Per the anticipated deal, Aptar will buy 64.6% of Voluntis share at €8.70 per share for €50.8 million ($61.5 million). The company plans to fund this deal with its existing cash in hand. After the deal’s closure, the transaction is likely to have a dilutive impact on the company’s adjusted earnings per share in the range of 1 cent per share to 2 cents per share for 2022.

AptarGroup’s innovative solutions and services serve a wide range of end markets, comprising pharmaceutical, beauty, personal care, home, food and beverage. Its Pharma segment has been witnessing higher sales to the injectables and active material science solution markets owing to solid demand for vaccine components and active material science solutions.

The Pharma segment’s active material science technology was selected to protect two new at-home COVID-19 tests that have received Emergency Use Authorization from the FDA. In the prescription drug market, the company’s unidose powder device is being used in a pivotal trial of intranasal powder-based Naloxone by Nasus Pharma. Also, a new nasal spray treatment for allergic rhinitis features AptarGroup’s nasal spray device. In the injectables market, the company continues to support various COVID-19 vaccine distributions across all regions.

Price Performance

The company’s shares have gained 35.2% over the past year compared with the industry’s growth of 43.8%.

AptarGroup currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the industrial products sector are Tennant Company TNC, Encore Wire Corp. WIRE and Arconic Corp. ARNC. All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tennant has an anticipated earnings growth rate of 49.5% for 2021. The company’s shares have gained around 18%, year to date.

Encore Wire has an estimated earnings growth rate of 49.5% for the ongoing year. Year to date, the company’s shares have rallied nearly 36%.

Arconic has a projected earnings growth rate of 447% for the current year. The stock has appreciated around 21%, so far this year.

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>>> Billerud Korsnäs AB (BLRDF) provides fiber based packaging materials and solutions in Sweden and internationally. It operates through three segments: Product area Board, Product area Paper, and Solutions & Other. The company offers kraft papers for medical equipment and food packaging sectors; and sack papers for making sacks. It also provides packaging solutions and systems for brand owners; and manufactures and sells liquid packaging and carton boards, as well as fluting and liners. The company serves packaging manufacturers, brand owners, and large retail and supermarket chains. BillerudKorsnäs AB (publ)was incorporated in 1926 and is headquartered in Solna, Sweden.

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>>> Graphic Packaging Holding Company (GPK), together with its subsidiaries, provides paper-based packaging solutions to food, beverage, foodservice, and other consumer products companies. It operates through three segments: Paperboard Mills, Americas Paperboard Packaging, and Europe Paperboard Packaging. The company offers coated unbleached kraft (CUK), coated recycled paperboard (CRB), and solid bleached sulfate paperboard (SBS) to various paperboard packaging converters and brokers; and paperboard packaging products, such as folding cartons, cups, lids, and food containers primarily to consumer packaged goods, quick-service restaurants, and foodservice companies; and barrier packaging products that protect against moisture, hot and cold temperature, grease, oil, oxygen, sunlight, insects, and other potential product-damaging factors. It also offers various laminated, coated, and printed packaging structures that are produced from its CUK, CRB, and SBS, as well as other grades of paperboards that are purchased from third-party suppliers; designs and manufactures specialized packaging machines that package bottles and cans, and non-beverage consumer products; and installs its packaging machines at customer plants and provides support, service, and performance monitoring of the machines. The company markets its products primarily through sales offices and broker arrangements with third parties in the Americas, Europe, and the Asia Pacific. Graphic Packaging Holding Company was incorporated in 2007 and is headquartered in Atlanta, Georgia.

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>>> O-I Glass, Inc. (OI), through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in the Americas, Europe, and the Asia Pacific. The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. It is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals. The company offers glass containers in a range of sizes, shapes, and colors. It sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. The company was founded in 1903 and is headquartered in Perrysburg, Ohio.

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>>> Aptar’s Activ-Film™ Technology Selected to Protect New SARS Rapid Antigen Test for COVID-19 Diagnosis


Yahoo Finance

February 15, 2021


https://finance.yahoo.com/news/aptar-activ-film-technology-selected-220000796.html


AptarGroup, Inc. (NYSE: ATR), a global leader in drug delivery, consumer product dispensing and active packaging solutions, announced that its Activ-Film™ technology was selected to protect a new SARS Rapid Antigen test for COVID-19 that recently received Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA).

The QuickVue® SARS Antigen test is a point-of-care rapid antigen test developed by Quidel® Corporation, a leading manufacturer of diagnostic healthcare solutions, that delivers test results in 10 minutes. The visually read test requires no supplemental instrumentation and offers expanded access to affordable and accurate COVID-19 testing that will help meet the urgent testing needs of the global economy, including for those in school systems and rural areas.

Aptar CSP Technologies’ Activ-Film™ technology is integrated into the diagnostic kit to protect against moisture and other environmental conditions that could otherwise impact test accuracy. Activ-Film™ leverages Aptar’s proprietary 3-Phase Activ-Polymer™ technology, which provides a broad spectrum of custom-engineered protection in a variety of configurations, such as Activ-Vial™ for housing diagnostics dipsticks and Activ-Tab integrated within diagnostic cassettes. This material science-based active packaging technology is currently used to protect a range of electrochemical, lateral flow and molecular diagnostic test kits on the market today.

"We are pleased to partner with Quidel® Corporation on this critical diagnostic tool and help bring the QuickVue® SARS Antigen test to the market," said Stephan B. Tanda, Aptar President and CEO. "Our material science Activ-Film™ technology protects the test strips, helping to provide quick, reliable results. We will continue to live up to our purpose and responsibility to society by providing solutions that protect critical COVID-19 diagnostic kits, along with dispensing solutions for medicines and consumer products needed by millions of people each day."

Badre Hammond, Vice President Commercial Operations, Aptar CSP Technologies concluded, "As we continue to navigate through the COVID-19 crisis, this game-changing solution will help meet the urgent demand for COVID-19 testing in communities around the world. We are committed to leveraging our material science expertise to enable our partners to meet the ongoing need for innovative healthcare solutions that help improve and save lives."

About Aptar

Aptar is a global leader in the design and manufacturing of a broad range of drug delivery, consumer product dispensing and active material solutions. Aptar’s innovative solutions and services serve a variety of end markets including pharmaceutical, beauty, personal care, home, food and beverage. Using insights, design, engineering and science to create dispensing, dosing and protective packaging technologies for many of the world’s leading brands, Aptar in turn makes a meaningful difference in the lives, looks, health and homes of patients and consumers around the world. Aptar is headquartered in Crystal Lake, Illinois and has 13,000 dedicated employees in 20 countries. For more information, visit www.aptar.com.

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Ball Corp (BLL) - >>> ‘We are at the cusp of a sustainable investing revolution’: Goldman Sachs


Yahoo Finance

by Ethan Wolff-Mann

October 1, 2020


https://finance.yahoo.com/news/we-are-at-the-cusp-of-a-sustainable-investing-revolution-goldman-sachs-194640173.html


The coronavirus crisis has sent a lot of people’s portfolios into chaos, lagging behind where they need to be to hit their financial goals, according to Goldman Sachs. ESG investing, the company's co-head of its fundamental equity business Katie Koch, says, could be the key.

Koch told Yahoo Finance that many of the company's clients are in 60/40 portfolios (60% in equities, 40% in fixed-income assets) and foreseeing difficulties making the gains they need, with growth predictions just 3% to 4% per year for the foreseeable future for those investors.

“Big picture, we think clients need to lean into a bunch of secular growth themes,” she said. Besides more obvious ones like millennial consumers, tech, future of healthcare, Koch pointed to climate solutions. (ESG investing refers to investing in companies based on their environmental, sustainable and corporate governance records.)

To start with, Koch said her clients are underweight traditional energy companies that deal in petroleum, noting that the sector has shrunk significantly from 16% in 2008 to just 2% of the Russell 1000 index today.

"The world's weaning itself off of oil effectively," she said. "Even in the best of times, they were challenged business models because they struggled effectively to out-earn their cost of capital."

On the other side, Goldman is overweight the "solutions" to climate risk.

"That includes stuff like renewables, but maybe less obvious places like packaging and also sustainable agriculture,” Koch said.

One of Koch’s favored companies is an aluminum company called Ball (BLL), which makes packaging and products like beer cans.

“That probably doesn't sound very exciting; aluminum wasn't an exciting sector for a long time,” she said. Plastic, Koch said, has a low recycling rate of 9%. Aluminum has a 70% rate.

"That gives you some context of the tremendous long-term growth opportunities that are available by investing in this space,” Koch said.

For many investors who eschew stock picking or actively managed funds, Koch’s active strategies may not provide too much real-life utility. People, she said, should be invested actively.

"You need to weed through what is going to succeed," she said. "There's going to be stuff you want to avoid — we are at the cusp of a sustainable investing revolution."

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>>> These companies have the most at stake when the world clamps down on plastic pollution


MarketWatch

Feb. 6, 2020

By Philip van Doorn


https://www.marketwatch.com/story/these-companies-have-the-most-at-stake-when-the-world-clamps-down-on-plastic-pollution-2020-02-04?siteid=bigcharts&dist=bigcharts


Investment bank Jefferies highlights potential winners and losers as governments and companies work to clean up the mess


Pollution is a tremendous and complicated problem around the world, requiring a variety of actions by governments, companies and people to clean up waste and reduce harm to the environment.

Analysts at New York-based investment bank Jefferies Group have published a detailed research report describing many approaches to mitigating the plastic-pollution disaster. They highlighted companies that might suffer from narrower profit margins under overlapping pollution-reduction scenarios, as well as those that may benefit from new rules and cleanup programs.

The growth of the plastics industry that led to the disaster illustrated above was summed up in one word a long time ago:

Plastic has been a boon to all of us, making so many things lighter, less expensive and more durable. But the problems of single-use plastics and the incredible amount of plastic waste in the world’s oceans are familiar to most people. It’s only a matter of time before world governments take strong action to reduce pollution and begin the plastic cleanup in earnest. Scores of companies have already signed pledges to reduce their own plastic pollution.

One example is Coca-Cola US:KO, which has pledged to have bottles through which their beverages are distributed be made of at least 50% recycled plastic by 2030, and to recycle at least one bottle for every one the company sells. Another is Kraft Heinz US:KHC, which has pledged to have its ketchup bottles made of 100% recycled plastic by 2022.

Just as innovation has solved other dire threats to humanity, it seems likely that new processes will enable people to clean up the oceans, once the political will is summoned.

Cleanup scenarios

In the research report published Feb. 3, Jefferies analyst Simon Powell wrote: “Recycling rates in many places are low, and in some markets actually falling, while demand for plastic packaging is rising.”

That’s a recipe for even more pollution, but the widespread knowledge of the growing problem is likely to lead to actions that will affect many companies and their shareholders.

“Across the whole plastics value chain, packaging represents the largest and fastest-growing segment,” according to Powell. “Asia-Pacific is the largest market for plastics, accounting for nearly half the volume, and will continue to grow quickly as consumer spending keeps pace with rising income and wealth.”

China stopped importing other countries’ plastic waste in 2017, which means the world’s plastic recycling has actually declined, while incineration and landfill use has increased.


“[A]n integrated approach consisting of better global waste collection, increased recycling, lower reliance on single-use plastics and packaging, energy recovery through incineration, and new technologies will be required,” Powell wrote.

Powell and a team of Jefferies analysts dug deeply into the advantages and disadvantages of approaches to limiting the production of single-use plastics, and disposal and recycling techniques. They also listed companies that would be affected under four scenarios through which the plastic-pollution problem can be mitigated:

Scenario 1 — bans and taxes

This scenario includes proposed or enacted legislation in many countries. An important example is China’s ban on plastic bags in major cities by the end of this year and all cities by the end of 2022. “Plastic resin used in packaging and, specifically, single-use packaging, is most at risk in terms of future demand,” according to Powell.

The companies with high revenue exposure to affected plastics under Scenario 1, relative to peers, according to the Jefferies analysts, include:

COMPANY TICKER COUNTRY

Amcor PLC US:AMCR United Kingdom
Aptargroup Inc. US:ATR United States
Berry Global Group Inc. US:BERY United States
Sealed Air Corp. US:SEE United States
Sonoco Products Co. US:SON United States
FP Corporation JP:7947 Japan
Winpak Ltd. CA:WPK Canada
Gerresheimer AG DE:GXI Germany
Greif Class A US:GEF United States
Source: Jefferies


To simplify this scenario, Jefferies has a base case of “hard-line” bans on single-use plastics beginning in 2023 to be “extended globally” by 2020. The analysts see such expected developments as “positive” for these companies:

COMPANY TICKER INDUSTRY COUNTRY

Ball Corp. US:BLL Containers/Packaging United States
Mondi PLC ADR US:MONDY Pulp & Paper United Kingdom
Smurfit Kappa Group PLC ADR US:SMFKY Containers/Packaging Ireland
Orora Ltd. ADR US:ORRYY Containers/Packaging Australia
Sources: Jefferies, FactSet

And “negative” for these companies:

COMPANY TICKER INDUSTRY COUNTRY

Amcor PLC US:AMCR Container/Packaging United Kingdom
FP Corp JP:7947 Containers/Packaging Japan
Winpak Ltd. CA:WPK Containers/Packaging Canada
Aptargroup Inc. US:ATR Containers/Packaging United States
Sources: Jefferies, FactSet


Scenario 2 — physical recycling accelerates

Under this scenario, “collection rates for plastic packaging reach 50% and 10% of all resin demand comes from recycled material,” by 2030, according to the Jefferies team.


Scenario 2 will be positive for these companies, according to the analysts:

COMPANY TICKER INDUSTRY COUNTRY

Republic Services Inc. US:RSG Environmental Services United States
Waste Connections Inc. US:WCN Environmental Services Canada
Waste Management Inc. US:WM Environmental Services United States
Casella Waste Systems Inc. Class A US:CWST Environmental Services United States
Veolia Environnement SA FR:VIE Water Utilities France
Sources: Jefferies, FactSet

And negative for these companies:

COMPANY TICKER INDUSTRY COUNTRY

Indorama Ventures Public Co. ADR US:INDOY Chemicals Thailand
Lotte Chemical Corp. KR:011170 Chemicals South Korea
Braskem SA BR:BRKM3 Chemicals Brazil
Mitsui Chemicals Inc. ADR US:MITUY Chemicals Japan
Sources: Jefferies, FactSet


Scenario 3 — chemical recycling ‘goes mainstream’

The base case here is for pledges made by companies and governments under the “New Plastic Economy Global Commitment” to be implemented by 2030, with new recycling technology used across the world by 2025. The Jefferies analysts expect under this scenario for “recycled content in packaging start to hit 50%.”


The analysts expect this scenario to be positive for these companies:

COMPANY TICKER INDUSTRY COUNTRY

Nestlé SA ADR US:NSRGY Food: Major Diversified Switzerland
Mondelez International Inc. Class A US:MDLZ Food: Major Diversified United States
Coca-Cola Company US:KO Beverages: Non-Alcoholic United States
Berry Global Group Inc. US:BERY Containers/Packaging United States
Sealed Air Corp. US:SEE Containers/Packaging United States
Covanta Holding Corp. US:CVA Environmental Services United States
Sources: Jefferies, FactSet

And negative for these companies:

COMPANY TICKER INDUSTRY COUNTRY

Ball Corp. US:BLL Containers/Packaging United States
Vidrala SA ES:VID Containers/Packaging Spain
Stora Enso Oyj ADR US:SEOAY Pulp & Paper Finland
Packaging Corp. of America US:PKG Containers/Packaging United States
Sources: Jefferies, FactSet


Scenario 4 — shift to alternative packaging

This scenario envisions a consumer backlash beginning in 2021, causing “new types of retail solutions” to emerge and most consumer products to be sold “without single-use plastic packaging” by 2025.


The Jefferies analysts expect this scenario to be positive for these companies:

COMPANY TICKER INDUSTRY COUNTRY

Ball Corp. US:BLL Containers/Packaging United States
Mondi PLC ADR US:MONDY Pulp & Paper United Kingdom
Smurfit Kappa Group PLC ADR US:SMFKY Containers/Packaging Ireland
Orora Ltd. ADR US:ORRYY Containers/Packaging Australia
Silgan Holdings Inc. US:SLGN Containers/Packaging United States
DS Smith PLC ADR US:DSSMY Containers/Packaging United Kingdom
Sources: Jefferies, FactSet

And negative for these companies:

COMPANY TICKER INDUSTRY COUNTRY

Amcor PLC US:AMCR Containers/Packaging United Kingdom
Winpak Ltd. CA:WPK Containers/Packaging Canada
PepsiCo Inc. US:PEP Beverages: Non-Alcoholic United States
L'Oréal SA ADR US:LRLCY Household/Personal Care France
Grupo Bimbo SAB de CV ADR US:BMBOY Food: Specialty/Candy Mexico
Sources: Jefferies, FactS

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>>> Sonoco Products Company (SON) manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The company operates through four segments: Consumer Packaging, Display and Packaging, Paper and Industrial Converted Products, and Protective Solutions. The Consumer Packaging segment offers composite and thermoformed plastic round and shaped rigid containers and trays; extruded and injection-molded plastic products; printed flexible packaging products; brand artwork management; and metal and peelable membrane ends and closures. The Display and Packaging segment offers point-of-purchase displays; supply chain management services comprising contract packing, fulfillment, and scalable service centers; retail packaging, including printed backer cards, thermoformed blisters, and heat sealing equipment; and paper amenities, such as coasters and glass covers. The Paper and Industrial Converted Products segment provides paperboard tubes and cores; fiber-based construction tubes and forms; wooden, metal, and composite wire and cable reels and spools; and recycled paperboard, linerboard, corrugating medium, recovered paper, and material recycling services. The Protective Solutions segment provides custom-engineered, paperboard-based, and expanded foam protective packaging and components; and temperature-assurance packaging products. The company sells its products in various markets, which include paper, textile, film, food, chemical, packaging, construction, and wire and cable. Sonoco Products Company was founded in 1899 and is headquartered in Hartsville, South Carolina.

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>>> Avery Dennison Corporation (AVY) produces and sells pressure-sensitive materials worldwide. The company's Label and Graphic Materials segment offers pressure-sensitive label and packaging materials; and graphics and reflective products under the Fasson, JAC, Avery Dennison, and Mactac brands, as well as durable cast and reflective films. It provides its products to the home and personal care, beer and beverage, durables, pharmaceutical, wine and spirits, and food market segments; architectural, commercial sign, digital printing, and other related market segments; construction, automotive, and fleet transportation market segments, as well as traffic and safety applications; and sign shops, commercial printers, and designers. The company's Retail Branding and Information Solutions segment designs, manufactures, and sells creative services, brand embellishments, graphic tickets, tags and labels, and sustainable packaging solutions; item-level radio-frequency identification solutions; visibility and loss prevention solutions; price ticketing and marking solutions; care, content, and country of origin compliance solutions; and brand protection and security solutions. It serves retailers, brand owners, apparel manufacturers, distributors, and industrial customers. The company's Industrial and Healthcare Materials segment offers tapes and fasteners; medical pressure-sensitive adhesive based materials and products; and performance polymers under the Fasson, Avery Dennison, Vancive, and Yongle brands. It serves the automotive, electronics, building and construction, other industrial, and personal care markets, as well as medical device manufacturers, converters, clinicians, and patients. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. Avery Dennison Corporation was founded in 1935 and is headquartered in Glendale, California.

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>>> Pope Resources, A Delaware Limited Partnership manages timber resources in the United States. The company operates in four segments: Partnership Timber, Funds Timber, Timberland Investment Management, and Real Estate. It is involved in growing, managing, harvesting, and marketing timber from the Partnership's 120,000 acres of direct timberland ownership in Washington; and private equity timber funds' 134,000 acres of timberland in Washington, Oregon, and California that co-owned with third-party investors. The company also engages in commercial thinning operations; leasing ground for cellular communication towers; gravel mines and quarry operations; and land use permits. In addition, it provides management, acquisition, disposition, and consulting services to third-party owners of timberland; provides management services to the funds; and acquires and manages timberland portfolios on behalf of the funds. Further, the company secures entitlements and/or infrastructure for the development; sells the entitled property to a party who would construct improvements; and leases residential and commercial properties in Port Gamble, Washington. Additionally, it operates a portfolio of approximately 2,000 acres in the west Puget Sound region of Washington. The company is headquartered in Poulsbo, Washington.

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>>> AptarGroup (ATR) to Hike Prices for Beauty Products by 5-10%


Zacks

November 19, 2018


https://finance.yahoo.com/news/aptar-announces-price-increases-140000877.html


AptarGroup, Inc. ATR recently announced that the company will implement a price hike by 5-10% for its beauty, personal care and home care products in North America. The price hike, which will be effective with shipments beginning on Jan 1, 2019, has been implemented to counter significant cost inflation on raw materials, freight and other inputs.

Notably, AptarGroup witnessed raw-material inflation of about $4 million in its Beauty + Home segment in third-quarter 2018.Moreover, AptarGroup’s Food + Beverage segment witnessed about $2 million cost inflation in the Sep-end quarter, hitting the bottom line. The company expects the inflationary environment to prevail, and raw-material and transportation costs to depress margins.

Nevertheless, AptarGroup’s price adjustments in North America and other regions will help offset these escalating costs. The latest price hikes will be in addition to any price adjustments related to import tariffs.

AptarGroup expects that its core sales will grow in each segment in the ongoing quarter. The company remains committed to execute its growth strategy in order to create long-term value for all stakeholders. Furthermore, it is poised to gain from business-transformation plan, product roll outs and acquisitions.

Share Price Performance

Shares of the company have outperformed the industry, over the past year. The stock has gained around 24% while the industry recorded a loss of around 5% during the same time period.

AptarGroup carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector include CECO Environmental Corp. CECE, Flowserve Corporation FLS and Mobile Mini, Inc. MINI. All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

CECO has a long-term earnings growth rate of 15%. The stock has surged around 56% in a year’s time.

Flowserve has a long-term earnings growth rate of 17.3%. The company’s shares have been up 28% during the past year.

Mobile Mini has a long-term earnings growth rate of 14%. Its shares have rallied 21% in the past year.

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>>> AptarGroup, Inc. is a provider of a range of packaging, dispensing and sealing solutions, primarily for the beauty, personal care, homecare, prescription drug, consumer healthcare, injectables, food and beverage markets. The Company has manufacturing facilities located throughout the world, including North America, Europe, Asia and South America. The Company operates through three segments: Beauty + Home, Pharma and Food + Beverage. It offers various dispensing and sealing solutions. Its primary products are dispensing pumps, closures, aerosol valves and elastomeric primary packaging components. Its elastomeric components also include pre filled syringe components, such as plungers, needle shields, tip caps and cartridges, as well as dropper bulbs and syringe plungers. Its Beauty + Home segment primarily sells pumps, closures, aerosol valves, accessories and sealing solutions to the personal care and home care markets, and pumps and decorative components to the beauty market. <<<

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>>> KapStone Paper & Packaging Corp. engages in the manufacturing of paper container and packaging products. It operates through two segments: Paper & Packaging and Distribution. The Paper and Packaging segment includes manufacturing and selling container board, corrugated products, and specialty paper. The Distribution segment involves in packaging solutions and services and distributes corrugated packaging materials. KapStone Paper & Packaging was founded on April 15, 2005 and is headquartered in Northbrook, IL. <<<

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Packaging Corp of America - >>> 6 Stocks With Growing Yield and Strong Returns



GuruFocus.com

October 10, 2016



http://finance.yahoo.com/news/6-stocks-growing-yield-strong-211748598.html



- By Tiziano Frateschi


Using the GuruFocus All-In-One Screener, I want to highlight stocks that have a 5-year growing dividend yield with strong profitability and a long-term track of solid returns and growing asset value.


Church & Dwight Co. Inc.(CHD) has a dividend yield that has grown by 31.80% over the last five years. The yield is now 1.49% with a payout ratio of 40%. The company has a 10-year asset growth rate of 8%, supported by a current return on assets (ROA) of 10.66% that, during the last 10 years, has had a median value of 9.19%.

The GuruFocus profitability and growth rank of 9/10 is confirmed by a current return on equity (ROE) of 22.76% that has been strong over the last 10 years, with an average ratio of 17.23%. ROE and ROA are outperforming the industry median and are ranked higher than 84% of competitors. Financial strength is ranked 6/10 and shows a cash to debt ratio of 0.20 that is underperforming 72% of its competitors and an equity to asset ratio of 0.47 that is below the industry median of 0.52.

Church & Dwight develops, manufactures and markets household, personal care and specialty products. The Company has eight power brands, Arm & Hammer, Trojan, Oxiclean, Spinbrush, First Response, Nair, Orajel and Xtra.

The largest investors in the company among the gurus are Ron Baron (Trades, Portfolio) with 1.42% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.36%, Mario Gabelli (Trades, Portfolio) with 0.16%, Joel Greenblatt (Trades, Portfolio) with 0.1%, Pioneer Investments (Trades, Portfolio) with 0.1% and Paul Tudor Jones (Trades, Portfolio) with 0.03%.

CVS Health Corp. (CVS) has a dividend yield that has grown by 31.60% over the past five years. The yield is now 1.88% with a payout ratio of 36%. The company has a 10-year's asset growth rate of 15%, supported by a current ROA of 5.40% that, during the last 10 years, has had a median value of 6.14%.

The GuruFocus profitability and growth rank of 8/10 is confirmed by a current ROE of 13.18% that over the last 10 years has an average ratio of 11.33%. ROE and ROA are outperforming the industry median and are ranked higher than 60% of their competitors. Financial strength has a rating of 6/10. Its cash to debt ratio of 0.04 is underperforming 100% of its competitors and its equity to asset ratio of 0.38 is barely above the industry median of 0.34.

CVS is an integrated pharmacy health care provider. The company has three segments: Pharmacy Services, Retail Pharmacy and Corporate.

Pioneer Investments (Trades, Portfolio), who holds 0.54% of outstanding shares, is the main investor of the company among the gurus, followed by Jim Simons (Trades, Portfolio) with 0.36%, PRIMECAP Management (Trades, Portfolio) with 0.33%, Jeremy Grantham (Trades, Portfolio) with 0.17% and Mario Gabelli (Trades, Portfolio) with 0.11%.


Allied World Assurance Co. Holdings AG (AWH) has a dividend yield that has grown by 29.40% over the past five years. The yield is now 2.38% with a payout ratio of 52%. The company has a 10-year's asset growth rate of 7%, supported by a current ROA of 1.31% that has had a median value of 4.14% over the last 10 years.

The GuruFocus profitability and growth rank of 7/10 is confirmed by a current ROE of 4.98% that over the last 10 years, had an average ratio of 14.34%. ROE and ROA are underperforming the industry median and are ranked lower than 74% of their competitors. Financial strength has a ratio of 7/10 and shows a cash to debt ratio of 0.44 that is underperforming 77% of its competitors and an equity to asset ratio of 0.26.

Allied World Assurance is a Swiss-based insurance and reinsurance holding company whose subsidiaries underwrite a diverse portfolio of property and casualty lines of business.

The main investors of the company among the gurus are Columbia Wanger (Trades, Portfolio) with 1.08% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.44%, Keeley Asset Management Corp (Trades, Portfolio) with 0.31% and Chuck Royce (Trades, Portfolio) with 0.21%.


Packaging Corp. of America (PKG) has a dividend yield that has grown by 29.30% over the last five years. The yield is now 2.83% with a payout ratio of 47%. The company has a 10-year asset growth rate of 13%, supported by a current ROA of 8.48% that, during the last 10 years, has had a median value of 7.87%.

The GuruFocus' profitability and growth rating of 9/10 is confirmed by a current ROE of 27.59%, which has been steady over the last 10 years with an average ratio of 22.48%. ROE and ROA are outperforming the industry median and are ranked higher than 80% of their competitors. Financial strength has a rating of 6/10, it shows a cash to debt ratio of 0.09 that is underperforming 82% of its competitors and an equity to asset ratio of 0.31 that is below the industry median of 0.51.

Packaging Corp. of America is a producer of container board and corrugated products in the United States. The company also produces multi-color boxes and displays, as well as meat boxes and wax-coated boxes for the agricultural industry.

First Eagle Investment (Trades, Portfolio) holds 1.33% of outstanding shares and is the main investor in the company among the gurus, followed by HOTCHKIS & WILEY with 0.93%, Joel Greenblatt (Trades, Portfolio) with 0.54%, Robert Olstein (Trades, Portfolio) with 0.11%, Pioneer Investments (Trades, Portfolio) with 0.09%, Ray Dalio (Trades, Portfolio) with 0.01% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.


NewMarket Corp. (NEU) has a dividend yield that has grown by 28.60% over the last five years. The yield is now 1.59% with a payout ratio of 31%. The company has a 10-year asset growth rate of 7%, supported by a current ROA of 18.50% that, during the last 10 years, has had a median value of 17.95%.

The Gurufocus' profitability ratio of 9/10 is even confirmed by a current return on equity of 58.10% that is strong since the last 10 years, with an average ratio of 41.53%. ROE and ROA are outperforming the industry median, with a ratio that is ranked higher than 94% of their competitors. Financial strength has a ratio of 6/10 and it shows a cash to debt ratio of 0.30 that is under performing 30% of its competitors and an equity to asset ratio of 0.32 that is below industry median of 0.54.

NewMarket Corp. manufactures and sells petroleum additives used in lubricating oils and fuels to enhance their performance in machinery, vehicles and other equipment. The petroleum additives market has two products: lubricant additives and fuel additives.

The main investors among the gurus are Jim Simons (Trades, Portfolio) with 0.42% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.14% and Murray Stahl (Trades, Portfolio) with 0.01%.


Equifax Inc. (EFX) has a dividend yield that has grown by 28% over the last five years. The yield is now 0.98% with a payout ratio of 32%. The company has a 10-year asset growth rate of 9%, supported by a current ROA of 8.57% that, during the last 10 years, has had a median value of 7.88%.

The GuruFocus profitability and growth ranking of 8/10 is confirmed by a current ROE of 19.72% that over the last 10 years had an average ratio of 16.48%. ROE and ROA are outperforming the industry median and are ranked higher than 79% of their competitors. Financial strength has a rating of 5/10 and shows a cash to debt ratio of 0.03 that is underperforming 97% of its competitors and an equity to asset ratio of 0.38 that is below the industry median of 0.49.

Equifax Inc. provides information solutions and human resources business process outsourcing services for businesses and consumers.

Ken Fisher (Trades, Portfolio) holds 0.16% of outstanding shares and is the largest investor among the gurus followed by Jeremy Grantham (Trades, Portfolio) with 0.14% and Meridian Funds (Trades, Portfolio) with 0.14%

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>>> Crown Holdings Inc. designs, manufactures, and sells packaging products for consumer goods in the Americas, Europe, and the Asia Pacific. The company offers aluminum beverage cans and ends, and other packaging products to beverage and beer companies; food cans and ends, including two-and three-piece cans in various shapes and sizes for food marketers; and aerosol cans and ends for manufacturers of personal care, food, household, and industrial products. It also provides metal and composite closures, and capping systems and services, as well as various specialty containers comprising lid and closure variations. The company was founded in 1927 and is headquartered in Philadelphia, Pennsylvania. <<<

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Packaging Corp of America - >>> 2 High Dividend Stocks For Reliable Income in a Risky Market



Chiradeep BasuMallick

Sep 6, 2016



https://www.thestreet.com/story/13694266/1/2-high-dividend-stocks-for-reliable-income-in-a-risky-market.html?puc=yahoo&cm_ven=YAHOO



If you're hungry for stable 3%-to-4% yield stocks that come equipped with a track record of at least five years of growing pay-outs, we've got just what you need.

Bakery foods seller Flower Foods (FLO) and containerboard producer Packaging Corp of America (PKG) are two contenders that may be under-the-radar at this time, but are definitely worth your attention. They're both robust moneymaking machines that won't let you down.

Flowers Foods is a leading manufacturer of packaged bakery foods in the country. The company currently operates over 40 extremely proficient bakeries, producing a wide range of bakery foods for retail and foodservice customers in the U.S.

It's true the soft second-quarter results and inquiries from the Department of Labor into its contractor model, have hurt the stock.

In the past month, shares have dropped over 15%, sharply under-performing processed and packaged goods peers like Snyder's-Lance, Golden Enterprises and Campbell Soup.

That said, Flower Foods continues to boast rock-solid dividend credentials. Offering an out-sized 4.30% yield (versus the consumer goods average of 1.78%), Flowers Foods boasts of rising dividends for 10 straight years. Between 2011 and 2015, dividends have witnessed a 12%-plus upswing year on year.

Backed by its robust over $200 million annual free cash flows, Flowers Foods dividends are reliable and growing. The company should be able to tackle its highly competitive environment, which is right now in the throes of a softening consumer demand.

In terms of earnings, the company should clock an 8.3% earnings-per-share (EPS) boost every year for the next half a decade.

Further, given its focus on protecting market shares, supporting growing brands and achieving strategic priorities, Flower Foods will only reinforce and redeem itself in the years to come.

We also recommend you watch out for its Project Centennial, designed to undertake a comprehensive business and cost structure review. Flowers Foods will continue hiking dividends at a steady run-rate, generating more cash for its shareholders.

A Package of Income

With higher pricing looming down the road, Packaging Corp of America's stock gained 15% in just three months and is certain to keep darting forwards. The company is the fourth largest manufacturer of containerboards in the U.S. It's also the third largest maker of uncoated freesheets in North America.

The stock's dividend-driver reputation is what interests us. The company recently announced $0.63/share quarterly dividends (payable Oct 14. for shareholders of record Sept. 15), translating into a 14.5% increase from prior dividends of $0.55.

PCA offers a hefty 2.7% dividend yield. Its pay-out ratio of less than 50% indicates the clear scope and potential to consistently bring in value over the years. And five years of regular dividend hikes, this company has proven itself as a sure-fire income creator.

While paper stocks like International Paper (IP) , WestRock (WRK) , KapStone Paper and Packaging (KS) and Clearwater Paper (CLW) as well as PKG have witnessed a fair amount of adversity driven by pricing concerns, fortunes are taking a turn for the better at this time.

With a dependable 7.6% annual EPS growth prospect for the next half a decade, Packaging Corp is a far smarter option than International Paper (~5.3%), Clearwater Paper (5%) and KapStone Paper and Packaging Corporation (earnings de-growth). And its industry-leading growth trajectory will only act as a solid buffer for higher dividends for the PKG stock.

If you factor in the relatively safer debt situation, its meteoric annual free cash flow ascent (from $52 million in 2011 to nearly $450 million in 2015), it doesn't take a genius to lock-in on the company's cash-cow capabilities. The company will nearly triple dividends over the next 4-5 years, in-line with the previous half a decade or so.

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>>> UFP Technologies, Inc. designs and converts foams, plastics, composites, and natural fiber materials and provides solutions to medical, automotive, consumer, electronics, industrial, aerospace, and defense markets in the United States. The company offers automotive interior trims, medical device components, disposable wound care components, military uniform and gear components, athletic padding, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, and cushion packaging products. It also provides wine shipping solutions from molded fiber under the Wine Packs brand name; tube and pipe insulation for clean room environments under the T-Tubes brand name; pharmaceutical bag protection system under the BioShell brand name; sanitary solution for nail care services under the Pro-Sticks brand name; medical device pouch for protecting small instruments and tools under the FlexShield brand name; and multi-purpose cleaning eraser under the Erasables brand name. In addition, the company engages in the design, manufacture, and marketing of various packaging solutions primarily using polyethylene, polyurethane, cross-linked polyethylene foams, and rigid plastics to original equipment and component manufacturers. UFP Technologies, Inc. markets and sells its products through direct sales force, and independent manufacturer representatives. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts. <<<

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>>> Sealed Air Corporation provides food safety and security, facility hygiene, and product protection solutions worldwide. The company?s Food Care segment offers integrated system solutions that incorporate equipment systems into customers? operations; and packaging equipment systems that incorporate various options for loading, filling and dispensing, and retort and aseptic processing conditions. It also provides graphic design, printing, training, field quality assurance, and remote diagnostics services; and clean-in-place and open plant systems that integrate cleaning chemicals, lubricants, floor care equipment, and cleaning tools. This segment offers its products under the Cryovac, Diversey, Cryovac Grip & Tear, Darfresh, Cryovac Mirabella, Simple Steps, Secure Check, and Enduro Power brands. Its Diversey Care segment offers Diversey-branded solutions, such as products and dispensing systems for hard surface cleaning, disinfecting and sanitizing, hand washing, deodorizing, mechanical and manual ware washing, hard surface and carpeted floor cleaning systems, floor cleaning robots, cleaning tools and utensils, and fabric care for professional laundry applications. The company?s Product Care segment provides product care solutions to meet cushioning, void fill, positioning/block-and-bracing, surface protection, retail display, containment, and dunnage needs under the Bubble Wrap and AirCap, Cryovac, Shanklin, Instapak, Jiffy, and Korrvu brand names. The company also offers medical applications products. It sells its products to business/industrial end-users, fabricators, OEMs/contract manufacturers, third party logistics partners, e-commerce/fulfillment operations, and retail centers in the food and beverage processing, food service, retail, healthcare and industrial, and commercial and consumer applications end markets. The company was founded in 1960 and is headquartered in Charlotte, North Carolina. <<<

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>>> Ball Names Erik Bouts to Lead Global Metal Beverage Packaging Business



PR Newswire

December 22, 2014



https://finance.yahoo.com/news/ball-names-erik-bouts-lead-130000156.html



BROOMFIELD, Colo., Dec. 22, 2014 /PRNewswire/ -- Ball (BLL) today announced that Erik Bouts, 53, will join the company as senior vice president, Ball Corporation, and chief operating officer, global metal beverage packaging, effective Feb. 1, 2015. Bouts will report directly to John A. Hayes, chairman, president and CEO and he will be based in Zurich, Switzerland.


.Ball Corporation names Erik Bouts to lead Global Metal Beverage Packaging Business

"Erik is a proven leader with a wealth of experience in global manufacturing environments," Hayes said. "His demonstrated track record in providing direction amidst competitive and changing global markets, building strong customer relationships, leveraging organizational capabilities and leading diverse, dynamic teams aligns well with Ball's culture and vision for the future."

Bouts will lead Ball's global metal beverage packaging business as the company continues to maximize value and leverage technological expertise, broaden its geographic reach, expand into new products and capabilities, and align with the right global and regional customers and markets. The regional metal beverage packaging business unit presidents in North America, Europe, Asia and Brazil will report to him.

Bouts most recently was president of Owens-Illinois, Europe. His professional experience also includes serving as chief executive officer at The Glidden Company, a subsidiary of AkzoNobel, and a variety of positions at the Philips Group, including leading the shaving and grooming business unit and president and chief executive officer of Philips Lighting North America.

Scott C. Morrison, senior vice president and chief financial officer, who assumed interim responsibility as chief operating officer for the global metal beverage business earlier this year, will resume his primary responsibilities.

"I'd like to thank Scott for the tremendous work he has done while taking on this additional role," Hayes said. "Our global beverage business is very well positioned and we are excited to add Erik to our leadership team."

About Ball Corporation
Ball Corporation supplies innovative, sustainable packaging solutions for beverage, food and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 14,500 people worldwide and reported 2013 sales of $8.5 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.

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>>> Ball Corporation, together with its subsidiaries, supplies metal packaging products to the beverage, food, personal care, and household products industries worldwide. It operates in four segments: Metal Beverage Packaging, Americas and Asia; Metal Beverage Packaging, Europe; Metal Food and Household Products Packaging; and Aerospace and Technologies. The Metal Beverage Packaging, Americas and Asia segment manufactures and sells metal beverage container products for use in beverage packaging; and non-beverage plastic containers. The Metal Beverage Packaging, Europe segment manufactures and sells metal beverage containers in Europe. The Metal Food and Household Products Packaging segment offers metal food, aerosol, paint, general line, and extruded aluminum containers, as well as decorative specialty containers and aluminum slugs; and extruded aluminum aerosol packaging products in Mexico. The Aerospace and Technologies segment designs, develops, and manufactures aerospace systems, including spacecraft, instruments and sensors, radio frequency systems and components, data exploitation solutions, and aerospace technologies and products for civil, commercial, and national security aerospace markets. It is also involved in the design, manufacture, and testing of satellites, remote sensors, and ground station control hardware and software, as well as provides related services, such as launch vehicle integration and satellite operations. In addition, this segment offers target identification, warning, and attitude control systems and components; cryogenic systems for reactant storage, and associated sensor cooling devices; star trackers; and fast-steering mirrors, as well as technical services and products to government agencies, prime contractors, and commercial organizations for various information warfare, electronic warfare, avionics, intelligence, training, and space systems needs. Ball Corporation was founded in 1880 and is headquartered in Broomfield, Colorado. <<<

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>>> Ball Corporation's Earnings Beat Is in the Eye of the Beholder




By Rich Smith

May 1, 2014



http://www.fool.com/investing/general/2014/05/01/ball-corporations-earnings-beat-is-in-the-eye-of-t.aspx



With business lines that range from aerospace to beverages packaging to home vegetable canning (the "Mason jars" so well known to domestic canners, now manufactured under license to Jarden Corporation), the Ball Corporation (NYSE: BLL ) epitomizes the concept of an industrial conglomerate of unrelated businesses. And this morning, Ball Corporation gave investors a lesson in why corporations love this business model so much.

Reporting earnings Thursday morning, Ball confirmed that in Q1 2014 it:

•Grew revenues less than 1%, with rising sales in two of its divisions (metal beverage packaging, Americas and Asia and in Europe, respectively) offsetting weaker sales in two others (metal food and household products packaging and aerospace and technologies)

•Added 370 basis points to its operating profit margin, driving it up to 10.8%

•Ended up earning $0.65 per diluted share on the bottom line

Whether that's an earnings "beat" or an earnings "miss," however, is open to interpretation.

It depends on your definition of "earnings"


Ball doesn't make this anymore, but it does license the rights to the name. Source: Wikimedia Commons

According to Yahoo! Finance, analysts expected Ball Corp. to report $0.67 per share in Q1. At first glance, $0.65 would appear to fall short of that mark. But as the company pointed out in its release this morning various one-time items, including "business consolidation costs, debt extinguishment costs and other activities," cut $0.16 off its net during the quarter. Absent these costs, earnings would have been $0.81 per share and beaten analyst estimates handily.

So far, investors appear to be taking Ball's word for it that earnings for the quarter were "strong" and that there's nothing to get disappointed about in today's numbers. And maybe they're right. After all, whether a company "beats" or "misses" a single quarter's Wall Street estimate is pretty irrelevant in the long term. What's more important is whether the company is succeeding, and growing, over time -- and Ball Corp. appears to be doing so.

Consider the metric of free cash flow -- the actual cash profits a company generates from its business, as opposed to the GAAP interpretation of its profits. In Q1, Ball actually burned cash -- $197 million worth of the stuff, in fact. But this was a figure much improved over last year's Q1 tally, which saw cash burn of $413 million at Ball Corp.

What's more, Ball Corp. sees that figure improving even further as 2014 progresses. Management projects free cash flow of $550 million will be generated this year -- enough cash to give the stock a 14.5 price-to-free cash flow ratio at its present market cap. With management promising earnings growth of 10% to 15% this year, that seems an appropriate valuation on the stock in the near term. A tad high, perhaps, in light of the stock's heavy debt load and analyst expectations for slower growth farther out, but not so expensive that I'd say investors are clearly wrong to be bidding Ball shares up this morning.

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>>> Packaging Corporation of America Reports Record 2013 Fourth Quarter and Full Year Results


http://finance.yahoo.com/news/packaging-corporation-america-reports-record-220000326.html



LAKE FOREST, Ill.--(BUSINESS WIRE)--

Packaging Corporation of America (PKG) reported today fourth quarter record net income of $227 million, or $2.33 per share. Earnings included special items of $1.70 per share of income from the reversal of tax reserves related to alternative energy tax credits, and after tax costs totaling $0.41 per share related primarily to PCA’s acquisition of Boise Inc. on October 25, 2013. Excluding special items, net income was $101 million, or $1.04 per share, compared to fourth quarter 2012 net income, excluding special items, of $59 million, or $0.61 per share. Net sales were a record $1.3 billion in the fourth quarter compared to $737 million last year.

The $0.43 per share increase in earnings, excluding special items, was driven by improvements in PCA’s earnings of $0.23 per share compared to last year’s fourth quarter, and a partial quarter’s results from the acquisition of Boise of $0.20 per share. The PCA earnings increase of $0.23 per share resulted from improved price and mix ($0.36) and volume ($0.04), and was partially offset by cost increases for repairs ($0.03), fiber ($0.03), labor ($0.03), energy ($0.02), depreciation ($0.02), chemicals ($0.01) and other items ($0.03).

Full year 2013 earnings, excluding special items, were a record $320 million, or $3.28 per share, compared to 2012 earnings, excluding special items, of $201 million, or $2.06 per share. Full year 2013 net sales were a record $3.7 billion compared to 2012 net sales of $2.8 billion. Full year earnings, including special items, were $436 million, or $4.47 per share, compared to 2012 earnings of $164 million, or $1.68 per share. Details of special items for both years are included in this press release.

PCA’s corrugated products shipments were up 4.4% compared to last year’s fourth quarter, and were up 24.0% including Boise’s partial quarter shipments. Containerboard production, including Boise, was 803,000 tons, up 151,000 tons over last year’s fourth quarter. Total containerboard inventories (PCA plus Boise) were down 1,000 tons compared to year-end 2012.

Commenting on PCA’s overall results, Mark W. Kowlzan, Chief Executive Officer of PCA, said, “We finished 2013 with another outstanding quarter, achieving all-time record earnings from improved prices, strong corrugated products volume, and productive and efficient mill operations. The integration of Boise’s operations with PCA is well underway, and we are finding additional synergy opportunities as the process continues. For the year, our earnings were up 60% over 2012’s record earnings, and we have been able to pay down $150 million in debt since the acquisition. Going into 2014, PCA is well positioned to further improve its results and continue to pay down debt.”

“Looking ahead to the first quarter,” Mr. Kowlzan added, “earnings improvement is expected from a full quarter’s operation of Boise with synergies and lower amortization of annual mill outage costs. We also expect higher prices for white papers in the first quarter as a result of announced price increases. Our largest containerboard mill in Counce, Tennessee will be down for a week in March for its annual maintenance outage which will reduce production and increase operating costs. Extremely cold weather and significant snowfalls have resulted in some plant closures and more than normal increases for energy, wood and transportation costs. Labor and benefit costs will be higher with annual wage increases and timing related benefit payments, and we expect a higher tax rate. Considering these items, we currently expect first quarter earnings of $1.00 to $1.05 per share.”

PCA is the fourth largest producer of containerboard and corrugated packaging products in the United States and the third largest producer of uncoated freesheet paper in North America. PCA operates eight paper mills and 98 corrugated products plants and related facilities.

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Crown Holdings -- >>> Crown to Buy Mivisa for $1.64 Billion From Blackstone, N+1



By Sonja Elmquist

Oct 31, 2013



http://www.bloomberg.com/news/2013-10-31/crown-to-acquire-mivisa-for-1-64-billion-from-blackstone-n-1.html?cmpid=yhoo




Crown Holdings Inc. (CCK), a U.S. consumer-goods packaging manufacturer, agreed to buy Spanish food-can maker Mivisa Envases SAU for 1.2 billion euros ($1.64 billion) including debt from Blackstone Group LP (BX), N+1 Mercapital and the company’s management.

The deal is expected to close next year, Philadelphia-based Crown said today in a statement. The acquisition has committed debt financing and is subject to review by the European Commission and other regulatory authorities.

Crown plans to purchase Mivisa, the largest food-can producer in the Iberian Peninsula and Morocco, to expand in Europe and the Middle East where Crown generated $4 billion of sales in 2012, or 47 percent of the company’s revenue, according to a filing. The Murcia, Spain-based company had sales of 555 million euros and earnings before interest, taxes, depreciation and amortization of 133 million euros in the year ended June 30, Crown said.

That implies Crown paid about 9 times Mivisa’s earnings before interest, taxes, depreciation and amortization. The average Ebitda multiple in four acquisitions of packaging companies in the past 5 years valued at $100 million or more is 7.7, according to data compiled by Bloomberg.

Mivisa’s food-can business earns 24 percent Ebitda margins, or double Crown’s European food-can margins, due to a much lower cost structure, Philip Ng, an analyst at Jefferies Group LLC, wrote in a note today, referring to Crown by its stock ticker. “With investors’ appetite for companies with leverage to a potential recovery in Europe, we view the acquisition as a positive for Crown’s margin profile.”

Crown, which makes containers from beer and soft-drink cans to candy boxes and aerosol spray bottles, rose 7.3 percent to $43.60 at the close in New York, the most since Aug. 9, 2011. The shares have climbed 18 percent this year.

Citigroup Inc. was Crown’s financial adviser on the deal.

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Packaging Corp -- >>> Boise Buyout Is a Bonanza for Packaging Corp.



By Rich Smith

September 16, 2013


http://www.fool.com/investing/general/2013/09/16/boise-buyout-is-a-bonanza-for-packaging-corp.aspx



Packaging Corp. of America (NYSE: PKG ) is buying Boise (NYSE: BZ ) , and investors are cheering.

Shares of Boise are up more than 26% on news that Packaging Corp. intends to pay $12.55 per share to acquire its rival paper products manufacturer. (Indeed, at $12.57 per share at last report, they're trading for more than Packaging Corp. is offering to pay.) Even more incredibly, Packaging Corp. shares are enjoying a rally of their own, up more than 8% on the news.

And for good reason.

Value is in the eye of the acquirer
Sure, if you look at the buyout one way, Packaging Corp. appears to be overpaying for Boise. Packaging Corp.'s target earns so little profit on its sales (less than 0.6%) that its P/E ratio post-announcement has skyrocketed to 92 -- nearly 4 times the P/E at Packaging Corp.

But viewed the right way, it's clear that Packaging Corp. is actually getting a steal of a deal here. With $2.5 billion in annual sales, Boise is agreeing to sell itself for just a 0.5-times sales valuation. That's a steep discount to the 1.75 times price-to-sales ratio that Packaging Corp.'s own shares command. And of course, Packaging Corp. itself is only a little bigger than Boise in terms of annual revenue -- $3 billion in annual sales, versus Boise's $2.5 billion. When you're a company valued at close to $5.8 billion, a chance to take over -- and take out -- a rival operator for an acquisition cost of just $1.3 billion, is an opportunity too good to resist.

Go ahead. Unwrap this package.
And so ... Packaging Corp. is not resisting. It's gobbling up a rival. And granted, Boise's not a terribly profitable rival as GAAP accounting standards for such things. But the company has a lot more to offer than just GAAP accounting fictions. First and foremost, Boise has annual cash production of nearly $94 million -- nearly 7 times its reported GAAP net income.

Combined with the $397 million in free cash flow that Packaging Corp. produced over the past year, this should make for a box-making giant churning out at least $491 million in FCF annually post-merger, and potentially more than that if the acquirer can wring some cost efficiencies out of the transaction.

Foolish takeaway
At a post-announcement valuation of $5.8 billion, what this all means is that Packaging Corp. appears to be on course for a valuation of less than 12 times FCF post-merger. If it can grow its profits at only the 12% rate analysts were projecting for it, solo, pre-merger, that's a very fair valuation to pay for the merged company. If Packaging Corp. can wrangle any part of the turbocharged 20% profits growth potential that analysts see for Boise, though, and use that to boost its combined earnings going forward, the stock could very well be a steal.

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Silgan -- >>> Silgan's Earnings Miss by a Penny



By Zacks Equity Research

Apr 26, 2013


http://finance.yahoo.com/news/silgans-earnings-miss-penny-143002972.html



Silgan Holdings Inc. (SLGN) posted adjusted earnings of 46 cents per share in the first-quarter of 2013; down 10% from 51 cents earned in the year-ago quarter, affected by higher resin costs and macroeconomic conditions in Europe. Earnings were within the company’s guided range of 40 to 50 cents per share but a penny short of the Zacks Consensus Estimate.

Including rationalization charges and new plant start up costs of 1 cent per share each, loss of 2 cents per share for an early extinguishment of debt and 4 cents per share impact from the remeasurement of net assets in Venezuela, earnings stood at 38 cents per share in the reported quarter. Including rationalization charge of 3 cents per share and new plant start-up cost of 1 cent per share, earnings per share in the prior-year quarter were 47 cents per share.

Total revenue increased 4% year over year to $796 million in the quarter, trailing the Zacks Consensus Estimate of $809 million. Sales increased in metal food container and plastic container businesses, which offset lower sales in the closures business.

Cost and Margins

Cost of goods sold increased 5% to $684 million. Gross profit declined 2% to $111 million. Consequently, gross margin contracted 80 basis points (bps) to 14% in the quarter. Selling, general and administrative expenses increased 16% to $51.8 million. Adjusted operating income plunged 10% to $63.3 million, leading to 120 bps contraction in operating margin to 8% in the reported quarter.

Segment Performance

Total revenue in the Metal Containers segment rose 4% to $464 million, attributed to higher unit volumes and higher selling prices. Adjusted operating income dropped 3% to $41 million, contracting operating margin by 80 bps to 8.9%. The year-over-year decline was due to an unfavorable comparison of a reduced inventory build in the first quarter of 2013 with a more significant inventory build in advance of labor negotiations in the first quarter of 2012, continued economic weakness in the European markets, partially offset by higher volume.

Closures segment’s total revenue slipped 1% to $161 million as unfavorable impact from the devaluation of currency in Venezuela, partially offset by higher average selling prices. Adjusted operating income fell 32% to $13.6 million and operating margin plunged 390 bps to 8.4%, affected by higher resin costs and weak economic conditions in Europe,

In the Plastic Containers segment, total revenue increased 6% to $171 million. Revenue increased due to the inclusion of net sales from the plastic food container operations acquired in Aug 2012, offset by lower volumes in the legacy operations. Adjusted operating income in the quarter was $10.7 million, up 3% from $10.4 million in the prior-year quarter. Benefit from the inclusion of the plastic food container operations, offset by the unfavorable impact from the lagged pass through of increases in resin prices in the reported quarter as compared to a favorable impact from resin in the prior-year quarter, and lower volumes in the legacy operations led to the overall increase.

Financial Updates

Cash and cash equivalents were $159 million as of Mar 31, 2013 compared with $466 million as of Dec 31, 2012. Current and long-term debt increased to $1.78 billion as of Mar 31, 2013 from $1.67 billion as of Dec 31, 2012. Debt-to-capitalization ratio increased to 78% as of Mar 31, 2013, rom 69% as of Dec 31, 2012. Cash used in operating activities was $69 million during the first quarter compared with $105 million in the prior-year quarter.

Silgan also completed a tender offer in Feb 2013, buying back approximately 5.5 million shares for $45.25 per share and also increased its dividend by 17% to 14 cents.

Outlook for 2013

The company affirmed its previous expectation of adjusted earnings per share in the range of $3.05 to $3.20 in 2013.

Adjusted earnings are expected to be in the range of 60 cents-70 cents per share for the second quarter of 2013. The guidance factors in the impact of the tender offer completed in Feb 2013, expectations of normal fruit and vegetable pack and continued strength in soup and pet food sales and expected benefit from the Aug 2012 acquisition of plastic food container operations.

However, these benefits are expected to more than offset the negative comparison of the resin pass through lag effect, which was beneficial in the second quarter of 2012. Furthermore, volumes in the closures and plastic container businesses are expected to be lower compared with the second quarter of 2012. Volumes in the aforementioned segments will be pitted against a tough comparison as unseasonably warm weather led to higher volumes in second quarter of 2012. In addition, volumes in the plastic container business benefited from accelerated sales in anticipation of certain customer shutdowns in the third quarter of 2012.

Our Take

Silgan has managed to increase its overall share in the U.S. metal food container market to approximately 50% on the back of accretive acquisitions and organic growth. The company’s acquisition of Rexam’s high-barrier food business in 2012 not only added to its growth platform through an adjacent product/technology but also augmented its scope for international expansion. The acquisition is expected to be accretive to 2013 earnings.

Silgan Holdings continues to enhance profitability through productivity and cost reduction opportunities. Silgan is funding two major initiatives to promote food can as a sustainable long-term packaging solution for shelf-stable products - Can Vision 2020 and an industry-wide campaign through the Can Manufacturing Institute.

However, Silgan’s exposure to Europe has increased after its Vogel & Noot acquisition and expansion of the Closures segment in the region, accounting for almost 50% of the segment’s revenues. In Europe, weakening demand and softer pricing has emerged as a result of the ongoing economic instability in the region. With the European conditions expected to remain challenging over the next few quarters, we expect additional pricing pressure.

Furthermore, Silgan Holdings’ high debt-to-capitalization ratio is a concern. Its strategy of pursuing acquisitions will further aggravate the company’s debt position. Higher resin costs are expected to weigh on the Plastics and Closures segments results during the first half of fiscal 2013. Silgan retains a short-term Zacks Rank#3 (Hold).

Peer Performance

Among Silgan’s peers, Crown Holdings Inc. (CCK) fared better with a 9% year-over-year increase to 50 cents per share, ahead of the Zacks Consensus Estimate of 48 cents per share. On the other hand, Ball Corporation (BLL) reported first-quarter 2013 adjusted earnings of 58 cents per share; an 8% decline from the year-ago adjusted earnings of 63 cents per share, falling short of the Zacks Consensus Estimate of 64 cents. Mobile Mini, Inc. (MINI) is slated to announce its first quarter results on May 6, 2013. The Zacks Consensus Estimate currently stands at 22 cents, projecting an 83% annual climb.

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Ball -- >>> 3 Stocks Any Growth Investor Should Consider



By Federico Zaldua

November 14, 2012



http://beta.fool.com/martinzaldua/2012/11/14/3-stocks-any-growth-investor-should-consider/16490/?ticker=BLL&source=eogyholnk0000001





>>> Coke, Pepsi or Beer? Ball profits from each!

Ball Corp. (NYSE: BLL) is the largest manufacturer of beverage cans in North America, and supplies products to such giant customers as Coca-Cola, Pepsi, AB InBev and MillerCoors. According to Zacks, this provides a competitive edge to the company and strengthens its pricing power in the market. Ball Corp. is also a manufacturer of metal and plastic packaging, primarily for beverages and foods. It also supplies aerospace and other technologies and services to government and commercial customers. This is a solid, predictable business that is great for long term oriented investors.

The company recently reported a very good 9-month performance that was slightly above management expectations. Ball is on track to achieve the goal of 10% to 15% diluted earnings per share growth for 2012. According to Ball's earnings call, the company will keep performing, driven by further emerging market growth, mix shifts to more specialty containers, more normalized weather in North America and Europe, and continued growth in aerospace.

The company plans to expand its global metal beverage can business. Accordingly, Ball acquired four low-cost metal beverage packaging manufacturing plants from AB InBev in the U.S., and announced plans to acquire the remaining 65% interest in a joint venture metal beverage can and end plant in China. Ball is not expensive, as its trailing P/E is just 14.7x, compared to the 16.4x average for the peer group and 14.4x for the S&P 500. This multiple does not reflect Ball's 3 year annual growth rate of 16% and sales growth of 11%. SAC Capital Advisors bought shares of Ball in the recent quarter.

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Ball Corp -- >>> Ball Corp to Streamline Production


By Zacks Equity Research
Aug 16, 2012


http://finance.yahoo.com/news/ball-corp-streamline-production-193438810.html



Ball Corporation (BLL) recently announced that it will cut down 12-ounce beverage can and end production capacity by stalling production at its two plants. In response to the current market demand, the company intends to step up its beverage can capacity in North America. The company will incur an after-tax charge of approximately $30 million related to employee severance and benefits, facility shut down and other actions, and the majority of which is expected to be recorded in the third quarter of 2012.

The two plants to cease production by the end of 2012 are the metal beverage packaging manufacturing plants in Columbus, Ohio, and Gainesville, Florida, subject to customer requirements. The Columbus plant employs around 110 people and two of its four existing lines manufacture standard 12-ounce cans. The Gainesville plant employs 125 people and produces variety of beverage can ends for standard can sizes.

Ball has been witnessing softness in demand for its standard 12-ounce beverage cans. To offset this loss, the company intends to capitalize on the increasing demand for specialty beverage can packaging.

Ball Corporation’s second-quarter 2012 adjusted earnings stood at 89 cents per share, which exceeded the Zacks Consensus Estimate of 87 cents as well as the year-ago adjusted earnings of 85 cents. Total revenue however decreased 0.6% year over year to $2.296 billion, and missed the Zacks Consensus Estimate of $2.347 billion.

Over the past few years, Ball Corporation has closed facilities to evenly match supply with market demand and effectively cut down costs. It has also taken steps to improve its return on invested capital through the redeployment of assets within its operations. The current plant closures will not only help Ball Corporation rationalize costs in a competitive market, but will further align supply with ever changing customer demand. In the rigid packaging industry, reducing costs, increasing prices, developing new products and expanding volumes are all possible avenues available for boosting earnings.

Broomfield, Colorado-based Ball Corporation is a manufacturer of metal and plastic packaging, primarily for beverages and foods. It also supplies aerospace and other technologies and services to government and commercial customers. Ball Corporation competes with Alcoa Inc. (AA), Rexam plc (REXMY) and Silgan Holdings Inc. (SLGN). Ball Corp. retains a short-term Zacks #3 Rank (Hold rating). Currently, we have a long-term Neutral recommendation on the stock.

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Westinghouse - modular nuclear power reactor -


http://www.westinghousenuclear.com/smr/index.htm


http://investorshub.advfn.com/boards/read_msg.aspx?message_id=76066201


>>> Westinghouse now introduces our next product innovation with the Westinghouse Small Modular Reactor (SMR). The Westinghouse SMR builds upon the innovation concepts and advances in technology achieved in the Westinghouse AP1000® reactor design.

The Westinghouse SMR is a 200 MWe class, integral pressurized water reactor, with all the primary components located inside the reactor vessel. It utilizes passive safety systems and proven components - realized in the industry-leading AP1000® reactor design - to achieve the highest level of safety and reduced the number of components required.

This approach will provide licensing, construction and operation certainty that no other SMR supplier can match with competitive economics.

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>>> Solar power generation world record set in Germany

Plants produced 22 gigawatts at midday hours on Friday and Saturday, meeting half country's electricity needs on second day
Share1657


Reuters

guardian.co.uk, Monday 28 May 2012 13.03 EDT


http://www.guardian.co.uk/environment/2012/may/28/solar-power-world-record-germany?newsfeed=true


http://investorshub.advfn.com/boards/read_msg.aspx?message_id=76066201



Solar panels stand on the roofs of the Sun Ship part of the Freiburg Solar Settlement in Freiburg im Breisgau. Photograph: Harold Cunningham/Getty Images


German solar power plants produced a world record 22 gigawatts of electricity – equal to 20 nuclear power stations at full capacity – through the midday hours of Friday and Saturday, the head of a renewable energy think tank has said.


Germany's government decided to abandon nuclear power after the Fukushima nuclear disaster last year, closing eight plants immediately and shutting down the remaining nine by 2022. They will be replaced by renewable energy sources such as wind, solar and bio-mass.


Norbert Allnoch, director of the Institute of the Renewable Energy Industry in Muenster, said the 22 gigawatts of solar power fed into the national grid on Saturday met nearly 50% of the nation's midday electricity needs.


"Never before anywhere has a country produced as much photovoltaic electricity," Allnoch told Reuters. "Germany came close to the 20 gigawatt mark a few times in recent weeks. But this was the first time we made it over."


The record-breaking amount of solar power shows one of the world's leading industrial nations was able to meet a third of its electricity needs on a work day, Friday, and nearly half on Saturday when factories and offices were closed.


Government-mandated support for renewables has helped Germany became a world leader in renewable energy and the country gets about 20 percent of its overall annual electricity from those sources.


Germany has nearly as much installed solar power generation capacity as the rest of the world combined and gets about four percent of its overall annual electricity needs from the sun alone. It aims to cut its greenhouse gas emissions by 40% from 1990 levels by 2020.


Some critics say renewable energy is not reliable enough nor is there enough capacity to power major industrial nations. But the country's leader, Angela Merkel has said Germany is eager to demonstrate that is possible.


The jump above the 20 GW level was due to increased capacity this year and bright sunshine nationwide. The 22 GW figure is up from about 14 GW a year ago. Germany added 7.5 GW of installed power generation capacity in 2012 and 1.8 GW more in the first quarter for a total of 26 GW capacity.


"This shows Germany is capable of meeting a large share of its electricity needs with solar power," Allnoch said. "It also shows Germany can do with fewer coal-burning power plants, gas-burning plants and nuclear plants."


Allnoch said the data is based on information from the European Energy Exchange, based in Leipzig.


The incentives provided through the state-mandated feed-in-tariff (Fit) are not without controversy, however. The tariff is the main support for the industry until photovoltaic prices fall further to levels similar for conventional power production.


Utilities and consumer groups have complained the Fit for solar power adds about 2 cents per kW/h on top of electricity prices in Germany that are already among the highest in the world, with consumers paying about 23 cents kW/h.


German consumers pay about €4bn per year on top of their electricity bills for solar power, according to a 2012 report by the country's environment ministry.


Critics also complain of growing levels of solar power make the national grid more less stable due to fluctuations in output.


Merkel's centre-right government has tried to accelerate cuts in the Fit, which has fallen by between 15% to 30% per year.


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Dry Bulk Shipping sector -- >>> Bail Before This Ship Runs Aground



http://www.fool.com/investing/general/2012/04/11/bail-before-this-ship-runs-aground.aspx



By Nicole Seghetti
April 11, 2012


Not long ago, dry shipping stocks were all the rage. Global financial markets were strong, business was booming, and massive shipbuilding efforts were under way. But in the wake of the Great Recession, the tides have turned. Revenues have taken a nosedive, credit has dried up, and barnacles encroach on aging vessels. While one shipper in particular posts numbers as ominous as the Titanic, another has managed to sail through these stormy seas toward calmer waters.

Dry shipping 101

Dry shippers transport non-liquid freight such as coal, wheat, and rice -- just about anything that does not have to be refrigerated or moved quickly.

The Baltic Dry Index is a measure of the demand for shipping capacity versus the supply of vessels. An increase in demand pushes the BDI up. The BDI was as high as 11,000 before the collapse of the global financial markets. At present, the BDI is 928, down over 46% this year alone.

Industry challenges

The reason for the weakening BDI is threefold:

1.As the global demand for commodities has slowed down, the shipping business has waned.

2.Shippers ordered more vessels during the boom, but since shipbuilding doesn't happen overnight, the extra capacity is being delivered now -- a time when it's not really needed.

3.Shippers order vessels with the expectation that they'll find financing later, but while they may still be able to find financing, it's likely to be more costly than it was a few years ago.


Big ships

Four dry shipping companies dominate the market. While all of their stock prices plummeted, Diana Shipping (NYSE: DSX ) and Navios Maritime Holdings (NYSE: NM ) haven't lost as much ground as the BDI. Things get interesting when we take a closer look at the financials.




Company


52-Week Price Change


Total Debt-to-Equity


% Increase in Common Shares Outstanding

(YE 2007 to YE 2011)


EV/EBITDA


Return on Assets



Diana Shipping

(30.14%)

28.59

27.0%

3.73

4.33%



DryShips (Nasdaq: DRYS )

(35.59%)

112.84

894.0%

9.64

2.37%



Genco Shipping (NYSE: GNK )

(47.34%)

126.30

63.0%*

6.95

2.22%



Navios Maritime Holdings

(27.85%)

126.29

9.0%

6.99

2.62%


Sources: Yahoo! Finance and companies' 2011 annual reports. *Includes a 7.5 million share offering made after Genco released its 2011 annual report.

A low enterprise value over EBITDA ratio (EV/EBITDA) indicates that a company might be undervalued. Diana is the most undervalued of the four competitors when evaluating solely on this metric, while DryShips is the most overvalued.

Return on assets shows how efficient management is at using its assets to generate earnings. Since dry shipping is a very capital-intensive business, ROA is a good metric to evaluate. DryShips, Genco, and Navios are equally efficient in managing business. Diana is almost twice as effective as these competitors.

Drop the anchor

The numbers above reveal one clear winner and one huge loser.

Diana has followed a conservative approach to growing its business. Diana did not expand as rapidly as the competition when credit was plentiful, but it has maintained an admirably low level of debt. It also maintains the youngest (and most inexpensive to maintain) fleet of the competitors listed.

On the other hand, major red flags ensue when evaluating DryShips. DryShips increased its number of outstanding common stock shares ninefold in four years, and it's not insiders buying those shares. The company is strapped for cash, struggling to paying down massive debt, and issuing boatloads of stock to keep afloat.

It should be mentioned that through its majority-owned subsidiary, Ocean Rig (Nasdaq: ORIG ) , DryShips owns and manages deepwater drilling rigs. The drilling rigs segment generates over half of DryShips' revenue. Earlier this month, DryShips announced that it plans to dump 9 million shares of Ocean Rig, no doubt in an attempt to raise more cash.

If I owned DryShips, I'd quickly jump ship before this one runs aground.

Foolish final thoughts

If you are looking to dive into the dry shipping industry and add one of these companies to your portfolio, evaluate Diana and Navios. I'd tread lightly with Genco and wouldn't even consider DryShips.

Dry shippers have amazing upside potential when the global economy turns around.


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Rare Earth Metals sector -- >>> Rare Earth Metals: How To Capitalize On The Recovery



April 3, 2012
by: Justin Kuepper

about: MCP, includes: AVL, LYSCF.PK, NEMFF.PK, REE, REMX



http://seekingalpha.com/article/474431-rare-earth-metals-how-to-capitalize-on-the-recovery



Rare earth stocks have been soaring higher in recent weeks. According to TickerSpy's Rare Earth Stocks (RAREE) index, the sector is trading up 18.4% over the past month, which is 15.1% better than the S&P 500 average. The move was driven by higher rare earth metal prices that rose last week for the first time in four months amid positive supply and demand trends.

But many of these companies have underperformed over a 52-week period, due to the past weakness in pricing. This means that the sector remains relatively cheap by historical standards at a time when rare earth metal prices may be poised for a lengthier recovery.


Stocks included in this index are:

Avalon Rare Metals (AVL)
Lynas Corp Ltd. (LYSCF.PK)
Molycorp Inc. (MCP)
Neo Material Techs Inc. (NEMFF.PK)
Rare Element Resources Ltd. (REE)
Market Vectors Rare Earth Strategic Metals ETF (REMX)


A Permanent Recovery this Time?


Rare earth metals investors have been on quite the roller coaster ride. Prices increased nearly 30-fold (in some cases) between 2009 and 2011, but have fallen sharply from their highs as supply caught up with demand in mid-2011. As demand fell, inventories were dumped and the downward plunge became very painful for many investors.

But rare earth metal prices have seen a strong recovery over the past month. Global demand has started to pickup outside of China, with strong U.S. consumer spending and employment figures, while the troubles in Europe appear to be moderating for the time being. These factors have led to greater demand for things like smart phones and wind turbines.

On the supply side, China has started to tighten its controls over the precious resources out of "environmental concerns". The country recently suspended the issuance of new licenses for prospecting and mining, imposed production caps, and export quotas. Combined, these factors have led to a very favorable environment for rare earth metal companies.

Sticking with the Industry Giant

Molycorp is the largest player in the group with a market capitalization of $2.94 billion, according to Yahoo! Finance. With a price-earnings ratio of 27.68x, the company trades at a slight premium to the S&P 500's 23.67x figure, but it trades at a discount to its peers. The firm has a cheaper EBITDA multiple than 9 out of 10 peers, according to Bloomberg's Real M&A blog.

Bloomberg suggests that Molycorp could become of the mining industry's most attractive takeover target, especially after diversifying its revenues into magnets. The company recently purchased Neo Materials Technologies that adds significantly to its rare earth metals portfolio, as well as expand its line of magnets used in the automotive industry.

After its acquisition of Neo Material Technologies for C$1.3 billion, which was a mix of 71.2% cash and 28.8% in Molycorp common stock, some analysts believe the discount may be due to concerns about dilution. But the combined company creates one of the most technologically advanced and vertically integrated rare earth metal companies in the world.

Investing in Molycorp with Minimal Risk

Molycorp may be more diversified and attractive, but investors may still want to exercise caution. The rare earth metals industry is extremely volatile and prone to sharp moves based on comments made by governments. As a result, a conservative investment strategy with room for upside may be the best way to profit.

Investors may want to consider purchasing long-term equity anticipation securities - or LEAPS - on Molycorp. For instance, at-the-money 35 Jan '14 call options trade with a premium of just $7.60 per contract at the time of writing. This means that investors can put less capital at risk ($760 vs. $3,503) and still benefit from long-term upside (although downside could result in a complete loss). The $760 could also be offset by writing shorter-term call options in a diagonal spread, but this carries a high opportunity cost if Molycorp is acquired.

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Dry Shipping sector -- >>> Is It Time To Buy Dry Shippers?



February 21, 2012
by: Justin Kuepper


http://seekingalpha.com/article/379091-is-it-time-to-buy-dry-shippers?source=yahoo



includes: BALT, DRYS, DSX, EGLE, EXM, FREE, GNK, PRGN, SBLK, SHIP




The dry shipping sector has rebounded strongly over the past month, according to data from Tickerspy. Their index is trading up 18.3% over the past month, which is 14.6% higher than the S&P 500 over the same time period. And some of the strongest players are trading more than 150% higher over the past couple of weeks. So, is now the time to buy again?

Some of the stocks included in this index are:

Baltic Trading Ltd. (BALT)
DryShips Inc. (DRYS)
Diana Shipping Inc. (DSX)
Eagle Bulk Shipping Inc. (EGLE)
FreeSeas Inc. (FREE)
Genco Shipping & Trading Ltd. (GNK)
Star Bulk Carriers Corp. (SBLK)
Seanergy Maritime Holdings Corp. (SHIP)
Paragon Shipping Inc. (PRGN)
Excel Maritime Carriers Ltd. (EXM)



A Brief History Lesson…

Investors looking for an ugly chart don't need to look any further than the Baltic Dry Index (BDI), which provides an assessment of the price of moving the major raw materials by sea. After reaching nearly $240,000 in 2008, the index fell sharply to its current levels of less than $20,000, and right near its allow-time lows reached in late 2008 after the collapse.


Two factors led to this terrible-looking chart:

The economic downturn in 2008 led to a sharp reduction in the raw materials needed by major economies and therefore hurt the demand side of the equation;
And, many dry bulk shippers had ordered new vessels pre-decline that were delivered precisely at the wrong time, which led to a sharp increase in the supply side.
The negative economics for the dry bulk sector were magnified by the high debt seen in individual companies. Since ships are rather pricey to purchase, many of these companies had debt-to-equity ratios that far exceeded stock market norms. And the failure to refinance these debts ultimately led to a few restructurings and bankruptcies.

Turnaround? Analysts Remain Divided.

The dry bulk shipping industry isn't getting any better, according to many analysts. RS Platou Economic Research, a unit of Norway's largest ship broker, told Bloomberg last week that conditions are likely to weaken this year as the supply of ships outstrips demand. The analyst suggests that the fleet would increase 11-12% this year, which was double its original forecast.

However, other analysts remain more optimistic. A recent Wall Street Journal article cited Douglas Mavrinac, managing director at Jefferies in Houston, as saying that the number of vessels hitting the water will slow during the second half of 2012. Meanwhile, the demand for ships and the number available will align by the end of the year, he added.

Still, many companies in the dry bulk shipping sector face insurmountable debt problems that will weigh on them even if a recovery in the industry takes hold.

A Different Explanation for the Strength

Many investors and analysts believe that a combination of short covering and bottom fishing may be what led to the recent rally.

Short covering - the repurchasing of shares by those who shorted the stock - may have resulted in upside pressure. The actions of a few short sellers may have put enough upside pressure in place to trigger stop-loss and take-profit levels for other traders and so forth. This is certainly a good possibility given the high short interest in the sector.

The rally may have also attracted a few long investors who saw the rally as the start of a recovery. Many have held the belief that the market may be bottoming out and therefore now is the time to build up a long position for when the industry recovers. But again, this limits the fields to only a few players with manageable debt loads.

In the End…

Investors may want to tread cautiously during this recovery, and if they do invest, stick with names that have low levels of debt, such as Diana Shipping Inc. And perhaps traders may also want to consider a pair trade - long DSX and short the industry - when a retracement takes place or at least hedge any long bets with some industry puts.

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Bakken -- >>> Build Your Own Bakken ETF


By Kirk Spano
March 4, 2012


Tickers: KOG, MHR, NOG, OAS, TPLM


http://beta.fool.com/kirkydu/2012/03/04/build-your-own-bakken-etf/2597/?source=eogyholnk0000001


A few months ago I was searching the exchange traded fund universe for an oil and gas basket based upon or at least heavily tilted toward Bakken shale. I knew it was unlikely I'd find one and was not surprised when I didn't find an easy way to throw money at the emerging oil play. So I did what any would-be good investor would do -- I studied the Bakken and the companies in the Bakken for several months.

In reading 10k reports and spending more time on the North Dakota Geological Survey and North Dakota Oil and Gas Division sites than I never considered I'd ever do, in addition to Geology.com, EIA.gov and the Oil Drum, I came to one conclusion: if the EPA does not shut down hydraulic fracturing, the purer play exploration and production companies on the Bakken are likely to be among of the best investment opportunities of my lifetime.

Extraction costs for Bakken shale are among the lowest still available in America, far lower than drilling in the Gulf of Mexico. Companies that are highly leveraged to this play, though they face start-up costs that investors frequently get bent out of shape about, should do very well (pardon the pun) as the transition away from an oil based transportation economy drags on for the next few decades.

I have narrowed the list of companies I would put into my basket of Bakken shale plays to five attractive small and mid-cap companies that all have the possibility of being acquired by oil majors in coming years. Based upon the Statoil acquisition of Brigham in 2011, each company listed below has a reasonable floor under their share prices from the potential sale value of their Bakken acreage. I like that sort of margin of safety when I can get it on volatile but potentially high-growth assets.

Much talked about Kodiak Oil and Gas (NYSE: KOG) and North Oil and Gas (AMEX: NOG) both control about 150,000 acres in the Bakken and are rapidly beginning to exploit those tracts deriving over 85% of their revenue from oil there. While Kodiak last week took some flack for higher than analyst expected expenses, I see the small pullback in stock price as a buying opportunity. Northern also pulled back on an earnings miss, which I see too as a buying opportunity.

Larger acreage holder Oasis Petroleum (NYSE: OAS), with about 255,000 acres, is starting to see efficiencies play out. Oasis issued very good numbers last week though it too paused in share price. The management of the company, largely from Burlington and Conoco previously, holds a significant portion of the company's shares, though several participate in regularly scheduled automatic small sales.

Triangle Petroleum (AMEX: TPLM) and more diversified Magnum Hunter Resources (NYSE: MHR) round out my basket of Bakken plays for my personalized ETF. Triangle is ramping up production and is under-covered at this time, making it a bargain in my eyes. The company also holds significant acreage in Nova Scotia, as well as the Bakken, and might use a Bakken acreage sale to finance its Canadian operations. Magnum recently got the Jim Cramer dollar-holler of approval when its CEO essentially said on the air they were building the company up for eventual sale.

While there are a few larger nice plays on the Bakken, these smaller companies seem to still be trading inefficiently. As one or more of the smaller companies are bought, which I think is pretty close to a sure thing, I will look into some of the larger companies that might start to pay dividends in coming years. I am using share price pullbacks on the smaller companies to accumulate long positions and the five mentioned companies were recent additions to my Caps portfolio which has done historically well <<<