Investopedia: Packaging Corp Shows The Risk Of Underestimating Good Companies

It's well worth remembering that good companies have a way of surpassing expectations and delivering strong results. I should have remembered that lesson last quarter when it came to Packaging Corp of America (NYSE:PKG).

While I have long liked Packaging Corp (aka "PCA") as one of the best-run paper/packaging companies in the country, I didn't see much slack left in the valuation. Yet, not only has the company continued to see good expense leverage, but it has continued to gain share in the market, while enjoying strong industry-wide pricing. That propelled the stock up more than 20% over the past three months.

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http://www.investopedia.com/stock-analysis/2012/Packaging-Corp-Shows-The-Risk-Of-Underestimating-Good-Companies-PKG-RKT-IP-BZ1017.aspx

Investopedia: Rock-Tenn Still Rolling

Packaging is typically a difficult business. After all, most things that need a package already have them, and customers are always pushing for new designs that eliminate materials and cut costs. What's more, it's a business that relies on difficult-to-control commodity inputs like natural gas, wood and wastepaper, and plenty of companies have wrecked industry pricing in the past by gorging on debt-fueled capacity only to cut prices to keep those factories running.

Against that depressing backdrop, Rock-Tenn (NYSE:RKT) stands out as a different sort of company. Rock-Tenn has often been an unusually efficient operator, and a leader in niches, like in-store displays. Now, with the large Smurfit-Stone acquisition, Rock-Tenn management has the opportunity to leverage their skills over a much larger business, and drive larger returns for shareholders.

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http://stocks.investopedia.com/stock-analysis/2011/Rock-Tenn-Still-Rolling-RKT-IP-PKG-TIN-BZ-GPK-MWV-NSRGY-KFT-GIS1114.aspx