Both Coles and Woolworths have announced they will stop providing free plastic shopping bags as from July 2018. Previous press articles have reported the value of such plastic bags used by supermarkets to be in the order of $150-$170 million a year.
A certain percentage of these bags were recycled as bin liners, dog dropping collection bags, etc., etc., meaning such users will need to find an alternative source of the bags.
It is reasonable to assume that some of these users will resort to buying plastic bags, and MCP through their Multix brand of plastic bags sold through supermarkets would be an obvious beneficiary.
A pick up of just 5%-10% of the value of plastic shopping bags previously obtained for nix would be a nice little earner for MCP.
A statement from the company would be welcome, and in any event it is not difficult to see a re-rating of MCP in the near future and a price target of around $1.75-$2.00 is not unrealistic.
MCP Price at posting:
$1.25 Sentiment: Buy Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)