Tag: ASX:AMC

In our “Opportunities in Review” webinar series, Amcor was identified as a high conviction buy with an upside target of $14.50.

The stock has rallied $1.00 from the original entry level and we continue to see a re-rating occur, which will see the stock price above $14.00.

Amcor reports half year earnings on the 11th of February. We feel the result may beat the market’s low expectations.

Amcor goes ex-div $0.265 on the 27th of February.  Adding a March $14.25 call option generates a further $0.15 per share of income.

Amcor has been a high conviction buy strategy based on the likelihood of hedge funds covering their short positions in the stock ahead of the Bemis takeover being finalised.

As illustrated on the chart below, the upside target for Amcor is $14.50+.

Amcor

Amcor looks oversold and we expect to see a rally back to $14.00 over the next 8 weeks.

Amcor announced a proposal to acquire Bemis in August, when the deal was valued at about $9 billion.

Bemis operates 56 packaging plants in 12 countries but most of its operations are in the USA; Amcor operates 195 packaging plants in 43 countries.

Amcor will shift its main share-market listing to the New York Stock Exchange in the all-scrip buyout, which would make it the world’s largest plastic packaging group.

It will ditch the ASX as its primary home, but still intends to give Australian shareholders exposure through Chess Depository Interests on the ASX.

We expect hedge funds to begin unwinding their short AMC long Bemis position which will create added buy-side demand into the market for AMC shares.

Amcor

Our ALGO engine triggered a sell signal for AMC on August 2nd at $15.25.

The share price reached a 3-month low of $13.62 in early trade today and is entering into an oversold chart pattern.

Despite the recent uncertainty of trade friction between the US and China, we believe the outlook for the paper and packaging sector will remain stable and input costs will continue to drift lower.

We see technical support in the $13.35 area and would not be surprised to see a ALGO buy signal above $13.00.

Amcor

Amcor reported FY18 earnings in-line with market expectations. NPAT came in at US$724 millon.

AMC’s earnings headwinds have continued for longer than expected and will likely carry into FY19.

We expect the acquisition/merger with Bemis, (US listed competitor), to  close in the new year and then synergy cost savings should help deliver a re-rating of the share price.

We see Amcor as good long term value although recognise that we are not under current algo buy conditions.

Amcor goes ex-div $0.32 o the 7th September.

Amcor

Shares of Amcor are down over 4.5% in early trade as the market digests the $7 billion (all script) takeover of US packaging peer, Bemis Company.

Logistically, the takeover bid maker sense since 85% of AMC’s revenue is from the US, Europe and the Middle East.

Along those same lines, a large proportion of AMC’s share registry is made up of international investors, which suggests the company will eventually de-list on the ASX to join the NYSE.

Monday’s announcement was not a surprise as the company has disclosed that they were in negotiations with Bemis for over a year.

Amcor