Monday, July 16, 2012

This Packaging Giant is on the Threshold of a Technical Breakout

Behind every great food product is a well-engineered package.

Packaging is essential to keep food fresh, ensure it arrives at your local store in one piece, and to communicate the brand image that makes you want to buy the item.

It's also a multi-billion dollar industry that's expected to increase revenue 24% by 2014.

Benefiting from this growth is one of the world's largest manufacturers of folding cartons. This company has a strong technical outlook, solid fundamentals and outstanding valuation... and its shares have 38% upside potential.

Graphic Packaging Holding Company (NYSE: GPK) -- which operates facilities across the Americas, Europe, Asia Pacific and Brazil -- offers paperboard and flexible packaging, primarily for the food and beverage industries.

In fact, it creates packaging for some of the world's most recognized household brands, including Coco-Cola (NYSE: KO), Pepsi (NYSE: PEP), General Mills (NYSE: GIS) and Kraft (NYSE: KFT).

Graphic Packaging focuses on providing low-cost, high-tech packaging solutions, especially for China, one of the world's largest beer consuming nations. GPK expects its beer packaging to grow over 5% annually in the coming years. The Chinese are also showing an increasing demand for dairy products, like milk and yogurt, which require innovative packaging solutions. (more)

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