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JimVanMeerten (62.35)

Packaging profits on the rise

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February 03, 2011 – Comments (0) | RELATED TICKERS: GPK , BLL , ATR

This morning I added Graphic Packaging (GPK) to the Barchart Van Meerten New High portfolio.  I found it while screening on Barchartfor those companies hitting the most frequent new highs.  The company is in the Packaging and Container sector and the whole sector should benefit as the world wide economy gets back on track.

GPK is a leading provider of paperboard packaging solutions for a wide variety of products to food, beverage and other consumer products companies. Graphic Packaging's customers include some of the most widely recognized companies in the world.

The factors I considered in the pick are:

1 - 96% Barchart technical buy signal

2 - 16 new highs and up 23.46% in the last month

3 - Relative Strength Index is 72.55% and climbing

4 - Trades around 4.99 with a 50 day moving average of 4.17

4 - Wall Street analysts have 3 strong buy recommendations based on hope of increased sales and earnings

5 - Sales are expected to increase by 2.90% next year

6 - Earning are estimated to increase by 466.70% this year , 64.70% next years and 8.00% annually for the next 5 years

7 - Investor sentiment is positive with the CAPS members of Motley Fool voting 55 to 15 that the stock will beat the market and the All Stars in agreement 31 to 7

I chose GPK based on its recent price momentum but there are 2 other companies in the P&C sector you might want to consider.


BLL -- Ball is a a manufacturer of metal and plastic packaging, primarily for beverages and foods, and a supplier of aerospace and other technologies and services to commercial and governmental customers.


Factors to consider:

1- 100% Barchart technical buy signa

2 - l9 new highs and up 6.60% in the last month

3 - Relative Strength Index 65.80% and rising

4 - Trades around 73.47 with a 50 day moving average of 96.15

5 - Wall Street brokerages have 7 buy and 4 hold recommendations published

6 - Sales are projected to increase by 12.60% this year and 3.10% next year

7 - Earnings are estimated to increase by 16.70% this year, 11.80% next year and 9.67% annually for the next 5 years

8 -Investor sentiment on Motley Fool is high with the CAPS members voting 219 to 12 that the stock will beat the market and the All Stars agree 86 to 2

ATR --  Aptargroup Inc. is a leader in the design, manufacture and sale of three categories of consumer product dispensing systems: pumps, closures and aerosol valves. The company focuses on providing value-added dispensing systems to global consumer product marketers in the personal care, fragrance/cosmetics, pharmaceutical, household/industrial products and food industries. Value-added packaging allows consumers to conveniently dispense a product, in an aesthetically attractive package, which consistently meets required usage or dosage characteristics.


The factors to consider on ATR are:

1 - 32% Barchart technical buy signal

2 - 3 new highs and up 1.10% in the last month

3 - Relative Strength Index is 55.53%

4 - Trades around 48.85 with a 50 day moving average of 47.48

5 - Wall Street brokerages have 3 buy and 6 hold recommendations published

6 - Sales are projected to increase 11.70% this year and 5.30% next year

7 - Earnings are estimated to increase by 34.40% this year, 8.80% next year and 11.42% annually for the next 5 years

8 - Investor sentiment is high with the CAPS members on Motley Fool voting 82 to 5 that the stock will beat the market and the All Stars agree 31 to 1

Any of these 3 stocks might be a good addition to your watch list but I think GPK has more factors in its favor.


Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.


Through Marketocracy Capital Management you can have a Separately Managed Account that mirrors his Barchart Van Meerten New High portfolio.

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