Editor's Note: Our analyst Jay Van Sciver is hosting an institutional call today to review the short case on shares of BLL. If you are an institutional investor and would like more information email sales@hedgeye.com.
Finally, Some Catalysts In Sight
The production of aluminum cans is a low/no growth, reasonably consolidated industry that used to be rated an ‘Okay, I guess’ by investors.
Over the past 18 months, however, shares of Ball (BLL) have moved to an excessive valuation, leaving behind other packaging companies. We’ll explore the reasons for this, like freight costs, and misperceptions about the plastic substitutions, input costs, labor, liabilities, and catalysts for revaluation today at 10:00am ET.
Packaging, like commercial services, can seem an attractive hiding place in an industrial slowdown. But we think it is in fact risky at these levels.
Shares of BLL could well underperform peers by 50% as capacity, Rexam accruals/charges, and unrealistic estimates finally impact investor expectations.
Email sales@hedgeye.com for more information.
