Friday, December 25, 2015

Long Sealed Air: SEEing Is Believing, Value Add Driving Higher Value, $see, #earnings, #in

Customers coming to need SEE for margins. Sealed Air turns customer commodity products into high-margin items at grocery. Main player in the space.

About to benefit from the first upcycle in supply of beef in a decade, which should drive volumes.

Volumes, already strong at 3%, expected to accelerate.

Diversey business, which has been a drag, could be turning up.

Not much competition.

Value-Added Products Making SEE's Clients Look Good And Increase Profits

Imagine you're a low-margin commodity chicken or beef producer that has as commodity a product as they come. By definition, this is a commodity. All your strength to package and sell to a supermarket chain is gone. They can buy the same product anywhere. Add to that the shelf life is weak and you may have to take back returns. Add to that safety issues that hurt the entire food chain (excuse the pun here because that's what it is) hurts you the producer too.
Along comes one company, Sealed Air (NYSE:SEE) and says we can solve all that for you.
1. We will provide you a packaging and ingredients for your product so you can offer to supermarkets a value-added product. The product you offer will not be plain old chicken wings, it will be ready baked, grill seasoned, pop in the oven, etc., so the shopper doesn't have to do a two-hour cooking today. You can charge more for the product and the supermarket can make more margin.
2. We will provide for you extra shelf life which will help ensure the products' cleanliness and safety.
Little does anybody realize, but SEE is starting to own the protein aisle 




Chaim Siegel has been working with hedge funds and mutual funds as an analyst and PM his entire career. Chaim specializes in earnings and predicts, analyzes and reacts to earnings and earnings events as well as developing current company stories with a hedge fund perspective. If you want his analysis real time sign up to the right for real time email alerts. 

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