Stock: Amcor Limited (AMC ASX)
Lifting the lid to take a look at the past 7 years trading in packaging manufacturer Amcor Ltd (AMC), we can see on the monthly chart a golden run that began in mid-2011 bouncing off the lows at $5.87. The 3 years that followed to mid-2014 saw the stock run up and perch above $9.98 cementing the level as major support in the process. The next break higher launched off $9.98 leading to a brief test of levels above $13.62 before a subsequent pullback to $12.06 formed the low of the key support/buy zone. A bullish reversal off $12.06 in early 2016 has since seen price run-up to be contained by $16.50 all-time high/resistance on the upside whilst holding firmly above the top of the key support/buy zone of $13.62 to the downside.
What Does Amcor Do?
Amcor Limited (AMC) is the locally listed global leader of the packaging industry. The company develops & manufactures a wide variety of packaging solutions for food, beverages, healthcare, homecare, personal care, pet care & technical applications. With operations in 43 countries across 200+ sites, the company employs 35,000 staff and generates annual sales north of $9 billion.
To access a list of company announcements, financial summary & dividend history – Click Here.
The Baron’s Brief – Official Summary
Warren Buffet is well known for many staple like brand plays over the years. Think of the likes of Gillette Razors, Duracell Batteries, Coca-Cola Beverages, Wrigley’s Chewing Gum and Heinz Foods to name a few. Now take a moment to think about the one thing that all of these products and nearly every other physical product has in common, they are all delivered to you, the end user in some form of packet or packaging.
Thinking of this from Amcor Ltd’s perspective as a packaging manufacturer & distributor, it gives us a true idea of the enormity of the addressable market the company has now and into the future. All the while that physical products exist, packaging will be required, and whilst nothing in life or markets is a certainty, this fact makes Amcor’s prospect of long-term survival a lot more likely & less susceptible to disruption from technology or other external factors.
The Baron considers any short-term share price weakness back down into the key support zone between $12.06 and $13.62 to be an opportunity to get long and join the buyers with the view to catching the next leg higher.
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Disclaimer: The information contained in this article has been prepared solely for the entertainment & educational purposes of the reader and does NOT constitute financial or investment advice. Any examples presented in this article are for illustration purposes only. No person, persons or organisation are authorised or permitted by the authors to take any action on the reliance of this information without first consulting an authorised, accredited financial planner or advisor. The authors are entitled, at their sole discretion, to hold positions in the above-mentioned stock/s. The authors accept no responsibility for the accuracy, completeness or timeliness of the information contained in this article. Disclosure – No positions are currently held in AMC – ASX at the time of publishing this article (This is a disclosure and NOT A RECOMMENDATION).