Monday, September 25, 2006

Trade Ideas: BMS

A solid day for the market on higher volume. The June/July rally ticks along
with the S&P a few ticks shy of a breakout to new closing highs. The Trade Ideas scan ticked along at a decent base; my 8 stock read covered a timespan of 2 minutes. The most recent stock to feature was Bemis Co. BMS.

The stock has shaped a lovely handle off a 5-month base. Clear support at $31.50 (run stops on a loss of this support) with an ideal pivot buy $0.10 above $32.60 resistance. The measured move target for the cup-and-handle is $36.50, but the point-n-figure chart target of $54 would appeal to those who would like to hold for a little longer. A 2.4% yield is handy candy while you wait.

Bemis Company, Inc. engages in the manufacture and sale of flexible packaging products and pressure sensitive materials primarily in the United States, Canada, South America, Europe, Asia Pacific, and Mexico. It operates through two segments, Flexible Packaging and Pressure Sensitive Materials. Flexible Packaging segment manufactures a broad range of consumer and industrial packaging. It offers multilayer flexible polymer film structures and laminates, blown and cast stretchfilm products, carton sealing tapes and application equipment, custom thermoformed plastic packaging, multiwall and single-ply paper bags, printed paper roll stock, and bag closing materials. Pressure Sensitive Materials segment manufactures pressure sensitive materials for label, graphic, and technical markets. Its label markets products include narrow-web rolls of pressure sensitive paper, film, and metalized film printing stocks used in high-speed printing and die-cutting of primary package labeling, secondary or promotional decoration, and for high-speed, high-volume data processing stocks, bar code labels, and numerous laser printing applications. This segment’s graphic market products include pressure sensitive papers and films used for decorative signage through computer-aided plotters, digital and screen printers, and photographic overlaminate and mounting materials.

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