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Owens Illinois Inc. (OI)

- NYSE
  • Sep. 28, 2013, 9:00 AM
    • Deep-value investor Daniel Khoshaba's KSA Capital Partners (now renamed KSA MidOcean) has delivered an annual return of 10.1% after fees since inception in 2004 - trouncing its competition and the S&P 500. He walked between raindrops in 2008, gaining 3.6% while the S&P lost 37%, but just 27% long exposure to the market this year has the fund lagging by nearly 5%. Three current favorites are Owens-Illinois (OI), Dana Holding (DAN), and Pinnacle Entertainment (PNK).
    • The world's largest maker of glass containers, Owens is in the sweet spot of being able to raise prices. With the extra cash, it's paying down debt and eventually will begin buying back stock.
    • Despite nearly doubling in the past 2 years, auto-parts maker Dana still trades at just 4x free cash flow and far below Khoshaba's price target of $38. The company recently announced plans to buy back about 30% of its stock.
    • A newish holding, Pinnacle was added to the portfolio after agreeing to buy rival casino Ameristar. The cost savings should allow Pinnacle to generate a 15% free-cash-flow yield in 2014 - well above Khoshaba's threshold of 10%. His price target is $40.
    • While not disclosing whether he's covered successful shorts in Timken (TKR) and Caterpillar (CAT), Khoshaba recently told investors recovery is unlikely for the companies because they depend on commodities where "production far outstrips demand." He's short BHP Billiton (BHP, BBL) for similar reasons.
    | 4 Comments
  • Sep. 17, 2013, 1:36 PM
    • A dose of fundamentals analysis reveals a trio of stocks that look cheap despite trading near 52-week highs, according to Barron's Jack Hough.
    • The group all features steady cash flow in industries where margins are improving, while trading below 15X 2013 earnings estimates.
    • In the bargain bin: CSX (CSX -0.3%), Owens Illinois (OI -0.5%), Hillenbrand (HI +0.9%).
    | 4 Comments
  • Sep. 12, 2013, 2:58 PM
    • Oppenheimer analysts are believers in the materials sector, citing increasing evidence that the global economy is modestly improving from its recent lethargic pace of growth, particularly in emerging markets.
    • Strategas isn't so sure; despite some stronger equity performance in recent weeks, it sees the persistence of cyclical weakness in emerging economies and the apparent forming of a structural consolidation in global commodities complex; it favors companies with a higher domestic revenue profile over those with a broader global footprint.
    • Vulcan Materials (VMC) gets just 1% of its revenue overseas, while Airgas (ARG) has just 2%; those least exposed to the U.S. economy include Newmont Mining (NEM), which gets all of its revenue abroad, and International Flavors (IFF) and Owens-Illinois (OI), which each get 23%-24% of sales at home.
    • ETFs: XLB, XME, EMT, PICK, JUNR. MSXX.
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  • Jul. 24, 2013, 4:53 PM
    Owens-Illinois (OI): Q2 EPS of $0.81 beats by $0.01. Revenue of $1.78B misses by $0.03B. (PR)
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  • Jul. 24, 2013, 12:10 AM
    Notable earnings after Wednesday’s close: AEM, AIZ, AKAM, AMCC, AMP, ANGI, ARII, ASGN, AVB, BDN, BIDU, CA, CAKE, CCI, CDNS, CLGX, CMO, CMRE, COG, CROX, CTXS, CYH, EFX, EGHT, EQIX, ETFC, FB, FBHS, FFIV, FLOW, FLS, FOE, FTNT, GGG, GPRE, HRC, IM, INFN, ITC, ITMN, KEX, LOGI, LSI, LVS, MLNX, MTSN, NFX, OI, OII, ORLY, PDH, PMTC, QCOM, RJF, RRC, RT, RYL, SCI, SGMO, SKX, SLG, SQNM, SRCL, SUSQ, SWFT, SYNC, TAL, TCBI, TER, TEX, TQNT, TRIP, TSCO, TWI, V, VAR, WCRX, WDC, WLL, WRE, WSH, XOOM, ZNGA
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  • Jul. 23, 2013, 5:35 PM
    Notable earnings after Wednesday’s close: AEM, AIZ, AKAM, AMCC, AMP, ANGI, ARII, ASGN, AVB, BDN, BIDU, CA, CAKE, CCI, CDNS, CLGX, CMO, CMRE, COG, CROX, CTXS, CYH, EFX, EGHT, EQIX, ETFC, FB, FBHS, FFIV, FLOW, FLS, FOE, FTNT, GGG, GPRE, HRC, IM, INFN, ITC, ITMN, KEX, LOGI, LSI, LVS, MLNX, MTSN, NFX, OI, OII, ORLY, PDH, PMTC, QCOM, RJF, RRC, RT, RYL, SCI, SGMO, SKX, SLG, SQNM, SRCL, SUSQ, SWFT, SYNC, TAL, TCBI, TER, TEX, TQNT, TRIP, TSCO, TWI, V, VAR, WCRX, WDC, WLL, WRE, WSH, XOOM, ZNGA
    | Comment!
  • Jun. 24, 2013, 2:34 PM
    The glass is half full for Owens Corning (OI -1.2%) with soda companies (KO, PEP, DPS) continuing to see demand for glass bottle products increase at a faster rate than plastic ones. Though glass bottles only account for 2% of soda drink sales, the niche had higher profit margins while boosting sales at a respectable 4.5% clip last year. All three major soda companies say they will try moving more brands to glass.
    | 4 Comments
  • May. 24, 2013, 8:07 AM
    Oil traders might have an opportunity in the recently-narrowed spread between WTI crude (USO) and Brent (BNO), says Goldman. Though expecting further narrowing in the near-term, the team recommends selling WTI Dec. 2014 contracts and buying equivalent Brent as rising Gulf Coast supplies later this year and in 2014 should pressure WTI prices.
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  • Apr. 23, 2013, 12:10 AM
    Notable earnings after Tuesday’s close: AAPL, ACC, AMGN, AWAY, BCR, BRCM, CREE, DV, EW, FBC, FTI, HA, HBI, HLIT, HTS, IRBT, ITC, JNPR, LIFE, NBR, NFX, NSC, OI, OII, OMI, PACB, PLCM, PNRA, RFMD, RHI, T, UIS, USNA, VMW, WRB, YUM, ZIXI
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  • Apr. 22, 2013, 5:35 PM
    Notable earnings after Tuesday’s close: AAPL, ACC, AMGN, AWAY, BCR, BRCM, CREE, DV, EW, FBC, FTI, HA, HBI, HLIT, HTS, IRBT, ITC, JNPR, LIFE, NBR, NFX, NSC, OI, OII, OMI, PACB, PLCM, PNRA, RFMD, RHI, T, UIS, USNA, VMW, WRB, YUM, ZIXI
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  • Jan. 30, 2013, 5:07 PM
    More on Owens-Illinois (OI): Q4 beats on earnings albeit on lowered expectations due to a slowdown in its European business. Net losses narrowed - despite a 3.9% dip in net sales and a tightening of gross margins- after the bottle maker posted a goodwill-related charge of $3.86 per share a year earlier. Looking into FY13, the company said it expects continued growth in emerging regions and stable market conditions in North America, but added that ongoing economic uncertainty continues to muddy its forecast for Europe.
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  • Jan. 30, 2013, 4:52 PM
    Owens-Illinois (OI): Q4 EPS of $0.4 beats by $0.03. Revenue of $1.75B. Shares +2.8% AH. (PR)
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  • Jan. 30, 2013, 12:10 AM
    Notable earnings after Wednesday’s close: ALGN, AMP, ATW, AVB, CDNS, CLB, CMO, COP, CTXS, DRE, EA, EDMC, FB, FIO, FTNT, JDSU, LVS, MUR, NOW, NXPI, OI, QCOM, QTM, STM, SWKS, TSCO
    | Comment!
  • Jan. 29, 2013, 5:35 PM
    Notable earnings after Wednesday’s close: ALGN, AMP, ATW, AVB, CDNS, CLB, CMO, COP, CTXS, DRE, EA, EDMC, FB, FIO, FTNT, JDSU, LVS, MUR, NOW, NXPI, OI, QCOM, QTM, STM, SWKS, TSCO
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  • Oct. 26, 2012, 1:39 PM
    Owens-Illinois (OI -2.5%) trades lower today, ignoring an early morning upgrade to Buy on valuation at BofA/Merrill Lynch. The firm says headwinds for the company have diminished and most of the negative news and earnings revisions appear behind it. Management also appears more attuned to capital returns and free cash flow generation, which warrants an expansion in valuation multiples.
    | Comment!
  • Oct. 25, 2012, 1:41 PM
    Owens-Illinois (OI +3.3%) moves up in spite of posting a mixed Q3 report yesterday. The company beat on a per share basis, but came up shy on revenue. Net earnings fell 23% Y/Y as the bottle maker suffered from sluggish beer consumption in the U.S. and Europe, while its bottom line was negatively impacted by rising raw-materials, energy and transportation costs.
    | Comment!
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Company Description
Owens-Illinois Inc is a manufacturer of glass containers in Europe, North America, Asia Pacific and South America. The main product lines are glass containers for the food and beverage industries.