June 8, 2000 (PRIMEZONE) -- Two leading analysts and top management from three sector firms examine the Packaging & Containers Industry in the latest issue of The Wall Street Transcript (212/952-7433) or http://www.twst.com/info/info107.htm
In a vital review of this sector for investors and industry professionals, this valuable 22-page issue features:
1) Outlook for Packaging Stocks - In an in-depth (3,000 words) Analyst Interview, Daniel Khoshaba, Managing Director at Deutsche Banc Alex. Brown, examines the Packaging & Containers sector, including growth trends, innovation in packaging, mergers and acquisitions, and shares specific stock recommendations.
Khoshaba reports, "There is a lot of innovation going on. A company that I follow, Aptar (NYSE:ATR), strong buy recommendation), produces very innovative dispensing systems that are used to dispense liquids, shampoos, conditioners, and cosmetic and fragrance-type products. Also, you are seeing a lot of innovation in the plastic bottle part of that market; you are seeing multilayer bottles made from post-consumer recycled resin. You are seeing more decorating today than you have ever seen before, with more color on bottles in the marketplace, and that's because the margins on pharmaceutical and personal care products are very high and the marketers are always looking for new innovative packages that will help sell the product. They don't mind spending a little bit more money; it's less of a price sensitive package if they think it will help them spur sales. And so you are seeing a lot of innovation in that area."
"I upgraded Bemis (NYSE:BMS) four months ago to a strong buy, it's been a very good stock. I continue to like it, I've got a $48 price target. The company has roughly $3 billion in sales. About 75% of their sales comes from very sophisticated forms of plastic packaging, high barrier and polyethylene. They make the packaging that's used to package frozen vegetables, meat, cheese and deli-type items. They make the majority of the films that are eventually turned into the very popular juice pouches that you see today in the grocery stores. They have dominant technology and a very nice position in Latin America in a joint venture that they have, which makes them the largest flexible packaging company in Latin America. The company is growing nicely and there's a little bit of a turnaround happening there. 25% of their business is pressure-sensitive materials, which are complex base materials used to make signage and labels out of other technical products. And the company has had some difficulties in the last couple of years. They restructured at the end of 1999. They are starting to see the benefits. That business should do well. There is some exposure to cyclical end markets in that pressure sensitive material business which does concern us, because with the Fed raising interest rates as much as they are and the NASDAQ where it currently is, one could certainly see how the economy may slow in the next couple of quarters, which would have an impact at least on that part of Bemis' business. However, I think the fundamentals are strong in the company's flexible packaging business, and they are buying back stock and doing all of the right things so that even if there were to be a modest slowdown in the more cyclical aspect of their business, they would still perform very, very well," Khoshaba explains.
This 23-page Packaging & Containers Issue also features:
2) Packaging & Container Stocks - In an in-depth (6,800 words) Analyst Interview, Joel Tiss, Senior Vice President with Lehman Brothers, evaluates Packaging & Container Stocks, discusses the outlook for the sector, including electronic marketplaces, consolidation, supply and demand issues, and shares specific stock recommendations.
3) CEO interviews (average 2,100 words). Top management of three sector firms examine the outlook for their firm and the sector. Firms include: Pactiv, Peak International, Polyair Inter Pack To obtain a copy of this 23-page Packaging & Containers issue call (212) 952-7433 or see http://www.twst.com/info/info107.htm
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