03/04/2024 10:09

Active Growth & Income Portfolio – Amendments

We are selling a position from the Active Growth and Income Portfolio today.

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03/04/2024 09:20

Orora (ORA) $2.32

There are two components to this business, the existing operations comprising Australasia and North America and the recent acquisition of Saverglass in Europe., which makes high end spirit bottles for the likes for Grey Goose and Glenfiddich. While the stock has been under pressure for a while, weighed down by the market's expectations of softer earnings from Saverglass, it was a surprise to see the North American distribution business struggle, and this was the main reason for the share price reaction in our view.

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19/02/2024 16:58

Orora (ORA) $2.71

ORA -6.55%: A very mixed reaction to ORA’s 1H24 results today, the stock initially rallied before the 10.30 am conference call started and then fell away from then on. The decline in share price is mirroring the miss of revenue (around 7% below consensus), however, earnings were resilient/solid, particularly in the newly purchased Saverglass business.

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06/02/2024 09:20

Orora Ltd (ORA) $2.78

We remain bullish on the packaging business ORA, having increased our exposure last week, believing the stock is cheap after dropping over 30% after raising cash to fund an acquisition of Saverglass. Orora (ORA) dovetails nicely into MM’s outlook for the coming quarters, offering some defensive exposure through 2024 from earnings that can steadily in the coming years while delivering a yield of ~6% (unfranked)

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31/01/2024 09:10

Switch Altium (ALU) into Orora (ORA)

Year-to-date, the performance between these two names has been fairly similar, with ORA up +6.2% and ALU +4.8%, but over the last 5 months, it's been a very different story with ALU adding ~40% while ORA has dropped by over -30% following its capital raise to buy Saverglass in 2023. This is clearly not a like-for-like switch, but such a move fits our desired portfolio characteristic positioning moving forward.

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30/01/2024 09:15

Orora Ltd (ORA) $2.76

Packaging business ORA saw its stock fall dramatically after raising money last August to expand its business into Europe with the new shares offered at $2.70, close to yesterday's close, i.e. the panic washout looks to be well and truly over. ORA should be well-positioned for investors like MM looking for some defensive exposure into 2024.

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17/01/2024 09:25

Orora (ORA) $2.69

We added the packaging company ORA to the Income Portfolio in November and it’s showing a very small profit so far, and we continue to like the risk/reward on offer below $2.75. While income is at the core of this portfolio, we are also very conscious of populating the portfolio with more ‘defensive’ exposures to increase the consistency of returns and reduce downside capture; in other words, ‘alpha’ is added by capturing less of any prevailing weakness in the market.  

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15/12/2023 09:34

Orora Ltd (ORA) $2.60

Packaging business ORA slipped -3% on Thursday; the stock has been under pressure since it raised $1.2bn to purchase bottle maker Saverglass in August when it issued shares at $2.70. We had the stock on our Hitlist for a while, for both the Income and Growth portfolios, but we remained patient as the capital raise played out.

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14/12/2023 16:26

Orora (ORA) $2.60

ORA -2.99%: One of the rare stocks that didn’t participate in today's rally after they released some updated guidance that included their recent acquisition of Saverglass. While group EBIT is expected to be higher in FY24, they said that the specific Saverglass earnings are broadly inline with how they saw things up until June,  but put some caveats around that which implies a greater level of uncertainty.

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11/10/2023 09:13

Orora (ORA) $2.78

Important to any acquisition in earnings accretion, or in other words, will the purchase increase the acquirer’s earnings per share (eps) given there are now more shares on issue. In the case of Saverglass, it is expected that it will, but not until FY25, the first full year of ownership.  We also consider the market, and how the issue of new shares will impact on-market demand. Investors have just been able to ‘fill their boots’ in ORA stock at $2.70, and the benefits of the acquisition are some way off.

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