Bemis Company, Inc. (NYSE:BMS)

Bemis (BMS) is a company that many of us touch every single day because of its extensive reach in the packaging world, including many consumer products. It's always on my watch lists (pounce pile) and although I'd normally wait for a higher projected annual return (~10%) ... the average stock is at ~8% now and BMS is a high-quality (70) conservative stalwart for my CAPS collection.

On three grounds, I think Bemis will outperform the market within 2 to 4 years. It is a company with solid history and I believe that the benefits of Alcan Packaging acquisition will show up in the coming years. It is also strategically situated among industries with phenomenal growth such as food, medical, and pharmaceutical. The growth in these industries is accelerating due to wellness revolution and the developing economies of China and India. I foresee that Bemis would indirectly benefit from these trends due to the steady demands for food and medical packaging.

HIGH DIVIDENDS AS BONDS PLUMMET

you know those packages that you need to open up with scissors-

Bemis makes that.

Scruffy believes in this company.

Highest operating cash flow in years, high dividend, lots of insider buying, just borrowed a lot at a low rate, investing, stable international sales. What could go wrong?

Increasing earnings, positive earnings surprise

This unexciting container/packaging company has a friendly dividend reinvestment plan and just raised its dividend in this difficult market.

True, it is 74% held by institutions, yet it is not well known, pays a hefty 4.65% dividend, and is consistent with earnings growth (approx 8 - 9% over the time I have held it). Looking at a comparative chart, over the past five years it has outperformed the S&P and its industry. Its market cap is about 2 billion, which I believe puts it in the "midcap" market range (in this environment, it may be considered a large cap in the next few weeks!)

I would suggest entering into its drip plan and being consistent with investing each month. Your account will be like a super savings account, gathering value without the attendent worry that it will have toxic assets on its books.

One of few stocks in the world that seem just too expensive even though it operates in an industry outside of the FIRE sector of economy (FIRE = Financial, Insurance & Real Estate).
The valuation to earnings potential going forward is not worth it, nothing going for it on the dividend end, and there would be other companies in the sector that are much more desirable.



I'd sell this company to put my money elsewhere. In fact, I'd rather use that money and pour it across residential real estate, apartment buildings, other stocks, commodities, or bonds. Even if it survives the next decade, it will lag its peers and it will likely lag S&P 500.


SELL.


bearish on pbr, cog, io, mcf, chd, prgo, zep, psa, ccl, joe, celg, sndk, wms, brk-a, alxn, mygn, otex, apol, fun, uti, swn, goog, tm, bms, stec



These picks are within this CAPs account that is market neutral - all longs are offset by a short. All long & short picks are diversified across industries & world location to limit downside exposure. This CAPS account will maintain at the very least 20 picks and at the very most 80 picks. Picks will be ended in long/short pairs to remain neutral.

The resin market has been on an increase. BMS has several rail cars at yesterday's price and they will take advantage of this. When resin does fall, resale prices will not go down as fast. They will win on either end (up or down on resin prices). Their history in stock appreciation has proven this over and over again.

This stock is included in the Morningstar "Dividend Portfolio," which I use as my core stock group. I highly suggest anyone interested in dividend income take a look at this grouping of quality income producing stocks.

good valuation

This CAPS account is tracking the 200 highest yielding S&P stocks.

New low pick

14% growth over 20 years will not suddenly go in reverse.

A Titan of its industry. Global expansion, high end products, and a fair dividend will allow this stock to beat the 500

Bemis has a good line of Containers for "Variety"

Their containers are used my other Sources for Products

and are Quality....

only potential M&A make this stock attractive