Winpak Ltd. (WPK-T)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Large acquisitions expand addressable market. Controversies and approval weigh on stock. Remains a high growth company. Valuation attractive relative to peers. Unlock Premium - Try 5i Free

(A Top Pick January 8/18 - Down 1%.) Part of the industrials that experienced massive multiple contraction. Earnings are growing. Lots of cash on the balance sheet. Still like it a lot.

A good growth story over the past decade, growing without issuing new equity. The packaging space has been challenged the past two years though. He wouldn't enter this space now, but it's okay to hold WPK for the long-term. Pays a 0.26% dividend only.

This business makes small acquisitions that are incremental. They have high margins and high returns. They think very long term. He does not think it is properly appreciated.

He met with them about a year and half ago. They are a meat packing company. They recently missed their earnings target and he doesn’t think the earnings growth will be great into the future. He likes the overall business, but it is still too expensive. He see competitors moving into the space.

The market has a group of packaging companies that are absolutely killing this company. He likes the space. It’s fairly high margin, and is still relatively fragmented in terms of being acquired and consolidated. The recent drop in this is definitely a buying opportunity.

A packaging idea. A lot of negative sentiment has been put into these names. They are getting more into recyclable products. They have a lot of cash on their balance sheet. He thinks now is the time to buy it on the dip. (Analysts’ target: $55.00).

A volatile stock. Chart shows that there is a trend. The stock is making higher highs and higher lows, but is currently testing the trend line again. So long as the last low is higher than the previous low, and the last high is higher than the previous high, you are still in an uptrend. If the stock remains above the 200-day moving average, it is still OK to own.

It is a really well run company. It does not get a lot of attention. It is not cheap but is a slow and steady performer. You might want to own it when there is a market correction.