Hi,Had a google alert setup for this company and this came...

Hi,

Had a google alert setup for this company and this came through on the weekend.

http://www.foodanddrinkbusiness.com.au/packaging/apco-recyclability-for-barrier-laminated-polypropylene-trays

Nothing much to write home about from what I can tell, but not much else happening in the public eye apart from the share price movement.

P/E of around 7.7 at a price of $0.205 still seems quite cheap in comparison to Amcor (P/E of ~21) and Orora (P/E of ~19). Keeping in mind that both of those companies are much larger and it appears this year had a considerable bump in revenue. If they can keep it up I think we'll see some appreciation coming in the next year. With a P/E of 15 (just as a long term market average), and EPS of around 0.0266 (existing EPS excl. ABS) we'd be looking at a price of around $0.40 assuming no cap raises. Obviously this is highly contingent on maintaining the same EPS (and possible future growth), otherwise returning to a P/E of 15 at 2018 EPS ($0.0115) knocks it down to a share price of around $0.23.

Looks like their current ratio is still around 1.6, bit down from ~2 in 2019. But still OK.

Anyway, DYOR and happy to hear any thoughts. I only have a small amount invested, but general discussion about performance and outlook is always good.