How low will the share price go? Need to ask some soothsayer, HC has lots of them on the forums
I actually think there could still be a wee bit more to go downwards though, not a lot and nothing to be concerned about in the long term. But in the short term, there are headwinds. The USD continues to drop, and recent comments from Janet Yellen seems she will be more than happy to continue running that printing press and driving the USD down (and AMC stock price). So in USD, AMCR has been flat in the past month. Or if you look since the March lows, it has gone +40% on ASX vs +80% on NYSE.
Another headwind is that the PE ratio is around 30 - and while this is not true, because it excludes the full Bemis earnings while it includes it in the market cap / price, perception is important. So based on the previous quarter's earnings (15.8c EPS) and current price ($10.95USD), the PE ratio is probably around 17.3 - or even lower assuming the growth and synergies continue as planned. And that's historically cheap-ish.
On the positive side though, Amcor is now a 'Dividend Aristocrat' paying 4.6% yield with growth in pipeline. That puts it in the Top 10 based on yield alone, though some of the others above Amcor have questionable growth to be able to continue their performance (e.g. Exon Mobil, Chevron, AT&T, etc). So it's in a pretty elite class now.
Any quants out there willing to estimate the support levels from here on the downside? Be interested to know what that looks like.
I'll just hold for now because market seems frothy, and may get a better buying opportunity to average down.
AMC Price at posting:
$14.42 Sentiment: Hold Disclosure: Held
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