STOCK OF THE WEEK

It’s been said that death and taxes are inevitable. So are trash and garbage! In good and bad economic times the refuse produced the world over grows exponentially.

In the USA we put most of our garbage in plastic bags. Hefty is one of the best known, best selling brands and the manufacturer of Hefty is Pactiv Corporation.

Pactiv makes a wide variety of storage bags for consumers and the food industry. These products are used widely by restaurants and grocery suppliers.

Pactiv has reduced debt substantially since 2007 and its operating earnings exceed debt service by a ratio of 7 to 1.

In a less volatile stock market and stronger economy PTV could grow 40% or more on increasing demand for its products. There is no dividend.

This stock is suitable for investors comfortable with moderate risk.

Preston F. Sanders is a Chartered Financial Consultant and Registered Investment Advisor. He lives in Washington, Georgia, and can be reached at prestonsanders@bellsouth.net.

NOTE: Any investment can lose value. Don’t buy any stock without a careful evaluation of it’s appropriateness for your situation. See your financial/investment advisor.