Pact Group (PGH) +5.66%: profit soared 44% to $50m in the half for the packaging business despite only a 1% improvement in revenues. Recycling has been the big beneficiary as companies continue to trend towards more environmentally sound practices. The rhetoric around the contracting business also looks to have changed with Pact now considering hanging on to the unit. It has been on the chopping block for 12 months now, part of the reason they were looking to sell was to improve the balance sheet which now looks in reasonable shape. The market appreciated the change as the company backed away from selling at a steep discount to the perceived value. Not looking to step up and buy though it looks good for a breakout around here.
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