September 32, 2005
SpeculatingStocks.com Stock Pick: Constar International, Inc. (CNST)
Stock Price: $1.95 (long-term strong buy)
Constar is a leading global producer of plastic containers for food, soft drinks and water. The company supplies plastic products for brands, such as Pepsi, Coca-Cola, Dr. Pepper, 7Up, Motts, Shasta, Peter Pan, Aquafina, Wishbone, Smucker's, Veryfine, Snapple and Smirnoff Ice.
Annual sales for 2004 were $844 million with a net loss of $6.82 million. Second quarter sales for 2005 were $265.4 million with a net loss of $7.7, or $0.63 per share. Though, the company continues to lose money each quarter, it is not out of control and Constar does have a revolving credit of $70 million.
It would not surprise us if CNST eventually made it back to its 52-week high of $7.76.
SpeculatingStocks.com Target Price: We expect CNST to turn around their manufacturing operations and reach $5.00 within the next 6 - 12 months.