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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: richardred who wrote (30211)3/3/2008 12:32:01 PM
From: Paul Senior  Read Replies (2) | Respond to of 74474
 
Upped my few shares of BMS today, fwiw.

This diversified packaging company is kind of a steady Eddy. S&P has a 12-mo. target of $27 (Stock at $24.73):

"Our risk assessment reflects the possibility of
softer global economic conditions, higher raw
material prices, and difficulty in integrating
acquisitions. However, BMS has an S&P Quality
Ranking of A, which indicates historically stable
earnings and dividend growth."

S&P rates the stock as "hold".

Perhaps they'll be right. Looks like a buy to me for me though.

Stock has traded every year for past ten at least at 16x earnings. Using S&P's '08 earning est. of $1.85, the stock sometime in next 9-12 months will hit at least $30 (if past ten years results can be counted on again in the this, the 11th year).

If not, a buyer is still holding a stock in a decent quality company which has increased its dividend every year for at least the past ten, and currently yields 3.4%.