EVENTS:   The Great Reset: AI, Geopolitics and The End of The Cheap Chips - MS Hwang/Counterpoint Research - 10 Feb 26   Making Weather Pay – The Outlook For Global Commodities - James Roemer/Best Weather - 11 Feb 26     ROADSHOWS: Thematic Research Based Ideas - David Scott /CHA-AM Advisors   •   London   06 - 06 Feb 26       Commodities Research with a Focus on Oil and Energy - Kathleen Kelley /Queen Anne's Gate Capital   •   London   10 - 10 Feb 26       Predictive Investment Models for Idea Generation and Risk Management - Hugh Vuillier /Variant Perception   •   New York   16 - 19 Feb 26      
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Sealed Air (SEE)

Materials

Behind the Numbers

SEE’s 3Q EPS beat is an illusion and the fact that metric guidance changes should help 4Q and management didn’t boost the FY outlook indicates that too - the price hike in 3Q likely pulled demand from 4Q as volume comps get tough. Others are cutting guidance on recent FX gains reversing (FX has been a key to SEE’s recent EPS gains). 4Q’s $1.13 estimate is relying on 25-cents from 3Q’s one-time price hikes > 4Q cost inflation.

Edition: 125

- 10 December, 2021


Sealed Air (SEE)

Materials

Behind the Numbers

Investor enthusiasm unwarranted, price rises will be unable to offset cost pressure - the price hike will only help 15 days in 3Q and BTN believes commodity inflation has worsened since the price increase was announced. SEE’s easy comps are over and the company will miss guidance this quarter. The stock remains a high conviction Short idea with an EQ (Earnings Quality) rating of 2 (Weak) - indicating that results have benefitted materially from aggressive accounting.

Edition: 118

- 03 September, 2021