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Amcor

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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Amcor

Wishing the Market Matters team a Merry Christmas and thanks for the efforts through the year... AMC looks like it may finally have stopped falling, , but do you see any catalyst or merit for the shares returning to the halcyon days above $16.50?

Answer

Many thanks for the best wishes Tony, always appreciated!

The packaging company has had a tough time of it with lower volumes and higher costs hurting their earnings and weighing on the share price, and we are not so sure these trends are about to change any time soon. We did recently buy Orora (ORA) in the Active Income Portfolio which had been spun out of Amcor in 2013, and has been a better performer than its larger competitor. ORA has also been weak recently, weighed by a large capital raise to buy high end bottle manufacturer Saverglass.

Between the two, we have a preference for ORA.

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Amcor PLC (AMC)
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