What is the stock?
Orora (ORA)
How long have you held the stock?
We’ve been in and out a couple of times, riding the swings up and down. Our most recent purchase was 12 months ago and we are still holding.
What do you like about it?
Strong organic growth, further acquisition potential, US dollar earnings, and a strong uptrend on the chart.
How is it better than its competitors?
The business is simpler and more transparent than other packaging companies so it is less prone to nasty surprises.
What do you like about its management?
They are committed to encouraging investment in “out of the box” ideas to drive sustainable developments. Gearing has also been reduced over time.
What is your target price?
Quite simply, we are happy to hold while the stock continues to trend higher. Often a stock will trade past its valuation so selling at a pre-determined valuation level could leave a lot of profit on the table.
At what point would you sell it?
If we get a negative surprise within the business, or if the charts show a reversal in the uptrend.
How much has it added (subtracted) to your overall portfolio over the last 12 months?
Clients have made more than 20% in the last year.
Where do you see value?
Further acquisitions and a strengthening US dollar will be a tailwind. The share price is stalling here in the short term, but our charting analysis suggests that Orora is about to resume the uptrend very shortly.
Source: ASX
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