over leveraged if recession comes, page-2

debt is indeed on the high side It shouldn't be a massive concern. On a net debt to Ebitda basis it's about 3x. Amcor is at 2.5x. However Packaging is a very defensive sector, lower Aussie dollar should help domestic manufacture and stop cheap food imports, even in a recession situation packaging volumes should be hurt too much. It can therefore sustain high levels of debt vs ,out other industries. Maybe the bigger risk is if some of these acquisition that have been made blow up!

I bought some today below 3.40 given the cheap factor outweighs the debt risks IMO esp considering dulux etc trades on 10x Ebitda. Short term trade.

Interesting to see what happens to Orora tomorrow. Orora should trade at a premium given better growth outlook, the 1bil in capex spent over the past few years and lower debt. Maybe an opportunity as the baby gets thrown out with the bath water.