From a recent Mad Money show:"I'm seeing a lot of pressure for the packaging companies. This is a well-run company, so I'll go with it. I think it's probably oversold."

Hold - Price 14.26 on Jan. 27
by Deutsche Bank Equity Research

4Q results were in line, [but the packager faces] challenges... .Its liquidity/financing concerns are being addressed; it is finalizing $300 million senior notes due '14 to provide liquidity for Grace settlement; and 12% coupon[s were sold]. SEE has $600 million-plus in bank availability, and lower '09 capital-expenditure should help. Our 17 target values SEE on an enterprise value/earnings before interest, taxes, depreciation and amortization basis of 7.5 times our '09 Ebitda estimate. Market cap: $2.25 billion.

Industry analysts generally divide the industry into makers of rigid containers such as cans, jars and bottles, and flexible ones, such as Sealed Air 's (SEE) famous Bubble Wrap. The biggest player globally is Sweden's Tetra Pak, an aseptic food-containers specialist with annual revenue of more than $10 billion.

Pactiv's Not Attractive:
Value Investor portfolio manager David Peltier explains why packaging maker Pactiv isn't worth wrapping up and sticking in your portfolio despite lower materials costs.

Click here to watch the video.

9/3/2008

Sealed Air (SEE) was downgraded from Neutral to Sell at Merrill Lynch. Estimates also cut, because of higher energy costs will offset lower polyethylene prices.

Bubble Wrap

Wachovia said it is upgrading Sealed Air (SEE) to Outperform from Market Perform based on valuation following recent underperformance. Although plastic resin costs have taken a toll on margins and investor expectations, see $2 a share in earnings power based on current assets. Based on conservative 15x multiple, see 50% upside.

Downgraded by Wachovia Outperform from Mkt to Perform

Date: 3-19-2007
Split ratio: 2-1