Owens-Illinois, Inc. (NYSE:OI)

Cheep company with strong insider buying

monopoly fallen too fast vs. s&p500. expect a double within 3 years.

moat - impossible to start a far reaching glassing company. too much startup capital required and too many permits/hassles. OI has big advantage of being dominant player

Atlantic Investment has been adding to its stake too.

Huge operating leverage at the bottom of its cyclical business. Margins will increase rapidly with capacity utilization when global trade picks up. Seeing end demand begin in China in Dec '09 bodes well for this co' international exposure.

This stock has always ran in a cycle of this time frame and has always stayed strong even when the market is week. Money to be made in next few years.

Just recovering from the market collapse in share price.

Low relative PE, good star ranking, PEG & 09 PE still below normal - bottom fishing 4/27 picks.

Market price is at a large discount to analyst estimates

Might have a bad quarterly report on the 29th due to lower sales and the possibility that their nat gas hedges have hurt them. I doubt it. This company has increased margins on declining sales, the lower price of nat gas can only help in the long run. They grew last year everywhere but North America and especially were kicking butt in South America. Hopefully they will deliver good news, but longterm I think they will be fine.

Produces products which are more necessary than other products produced by the other companies in the S&P. At least, I like to think so.

WOW! what a bummer for this one, but my oh my is it cheap. OI has made some moves to change its business around. Tough economy but we are not going to stop purchasing food products. grocery stores are where it is at, no one is going to eat out, and this company has already been over walloped, buy now hold and what it go. let it have a few months and if it goes down, buy a little more.

Recent sell-off of plastic containers business, plant closures and layoffs will damage earnings in the short term, but were the right move to sustain operations long-term. Cash flows and debt levels remain healthy. May continue to bleed out for a while in the short term, but I believe they've positioned themselves well for a comeback long-term.

Two Words...Energy Costs

Good overseas exposure will keep earnings up and price should rebound after recent reduction due to Sam Adam's recall which appears to be precautionary.

Glass is better than plastic as oil goes sky high

CAPS is the testing ground for my investment newsletter.

Not in love with the huge run up of this one, but I like the idea of a company that manufactures "health care packaging" as everyone starts taking more and more medication.

Here's a stable one for a market that has been all over the board. OI has a tremendous grasp on margin structure, and the manufarcturer seems to be expanding it's business internationally. Not to mention it's got a div yield pushing 5%...always attractive!

Glass is much greener than plastic and this company will continue to see growth in the US. As people continue to become worried about the toxins in plastic OI will be in great position to continue their dominance in the glass market.

Owens-Illinois, Inc. is a manufacturer of glass containers. The Company produces glass containers for beer, and ready-to-drink low alcohol refreshers, spirits, wine, food, tea, juice and pharmaceuticals. The Company also produces glass containers for soft drinks and other non-alcoholic beverages, principally outside the United States. Owens-Illinois, Inc. manufactures these products in a range of sizes, shapes and colors. The Company is active in new product development and glass container innovation. The Company has 83 glass manufacturing plants in 22 countries.

The Company’s customers Anheuser-Busch, Diageo, H.J. Heinz, Molson/Coors, Novartis, Pepsico, SABMiller and Saxco-Demptos, Inc. Its glass container customers outside the United States include Diageo, Foster’s, Heineken, InBev, Lion Nathan, Molson/Coors, SABMiller and Scottish & Newcastle.

On July 31, 2007, the Company completed the sale its plastics packaging business to Rexam PLC.

Technical Analysis:

Long term uptrend since August of 2006. Currently on pullback which will attract buyers. Stochastics and money flow are rising which indicates buying.