Packaging manufacturers are enjoying attractive valuations given their defensive qualities & potential for double-digit gains in earnings/09 barring a deeper recession, Barron's said 7 Dec. Packaging firms feature stable revenue growth, generate large amounts of cash, have pricing power & are benefiting from a fall in raw material prices resulting from cheaper oil prices, according to Barron's. "It's amazing how investors will hide in consumer products but forget that suppliers to that sector are just as defensive" Wachovia packaging analyst G Panjabi was quoted as saying. Ball, Crown, Silgan & O-I make rigid packaging such as cans/jars/bottles & are especially well-positioned because of their exposure to the food & beverage markets. Their shares also are relatively inexpensive, trading at an average of 8 times the expected earnings for 2008, Barron's said.
