Here is an exceptional small capital stock investment opportunity which provides a telling example of how value stocks are to be had in industries with uncertain business prospects.
The Containers & Packaging Industry depends on industrial clients. Therefore, recessionary times leave such stocks with very little room to maneuver. This particular company bucks the general trend. It has closed the fourth quarter of 2007 with a hefty 20% growth over the same period of 2006. Sales for the full year are nearly $1 billion against less than $800 million in 2006. Net Income growth is even more impressive: it has grown annually by 149% to just over $18 million for the fourth quarter. The company has reduced debt by over $30 million. This is precisely the kind of news that stock investors want to hear during these difficult times.
There are two reasons behind the business success of this stock. One is that it has ramped up its business in farm and home garden segments through pots, trays, and planters by acquiring a company engaged in horticultural products. Secondly, the company has a vantage position in the US markets for tires, wheels, and under-vehicle services. The latter is set for steady growth as people use tax benefits to switch over to cars with hybrid engines.
The stock is tantalizingly poised during the second fortnight of March 2008 at $12.65 against a 52-week range of $22.73-9.73. It is certainly a serious prospect for all stock investors who worry about the volatile US investment scenario of today.
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