Pro-pack is a tiny packing company. We follow it mainly to keep abreast of how various market factors are impacting smaller players, which is often where you get to hear about big issues first, because they typically lack the scale, size, differentiation, diversification, bargaining power, intellectual property etc that would otherwise insulate them from sectoral headwinds for longer.
Anyway, at this stage, PPG simply remind us that raw materials and supply chain kerfuffle’s continue to weigh heavily.
Pro pack has a few issues. Firstly, it rarely makes profit or cashflow. That’s usually “not good”.
Second, it has lots of debt.
Third, the market cap of the company is below that level of debt.
All over, red rover, to my mind.
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