BIG MO is on the move

[Peter Hansen]

Once again Phillip Morris will deliver the goods ....hang on to all your stocks after the split.....look at the good news!

March 31, 2008 10:37 AM EDT

S&P Equity Research reiterates a 'Strong Buy' on Altria Group (NYSE: MO)

S&P analyst, E. Kwon, says, "We are adjusting our 12-month target price to $27 from $88 to reflect completion of the spin-off of Philip Morris International (NYSE: PM) shares to MO shareholders. We look for MO's EPS growth to be driven by about $1 billion in expected restructuring savings over the '06 to '10 timeframe. The shares yield about 5%, based on an anticipated dividend of $1.16 per share. We are applying a 16.5X P/E multiple to our 2008 EPS estimate of $1.66 for MO, in line with historical averages, to arrive at our target price."

Altria Group, Inc. (ALG) is the holding company of Philip Morris USA Inc. (PM USA), Philip Morris International Inc. (PMI) and John Middleton, Inc., which are engaged in the manufacture and sale of cigarettes and other tobacco products.[SM]

[mrmarket]

If you're into dividends, this one is good and safe. If you're not into companies that kill people...avoid.

[Websman]

If you're into dividends, this one is good and safe. If you're not into companies that kill people...avoid.

I'll buy anything that makes me money... Life is temporary...and even more temporary for those who smoke. jejeje

[billyjoe]

If you're into dividends, this one is good and safe. If you're not into companies that kill people...avoid.

I've been killed by companies that looked squeeky clean when bought.

-----------billy

[Peter Hansen]

Just How GOOD has MO Performed?

Well I think pretty good .......check it out for yourself!

Of the original stocks in the S&P 500, these 20 stocks performed best over the last 50 years. Siegel calls them his Corporate El Dorados.

Rank
Name
Accumulation
of $1,000
Annual
Return

1.
Philip Morris
$4,626,402
19.75%

2.
Abbott Labs
$1,281,335
16.51%

3.
Bristol-Myers Squibb
$1,209,445
16.36%

4.
Tootsie Roll Industries
$1,090,955
16.11%

5.
Pfizer
$1,054,823
16.03%

6.
Coca-Cola
$1,051,646
16.02%

7.
Merck
$1,003,410
15.90%

8.
PepsiCo
$866,086
15.54%

9.
Colgate-Palmolive
$761,163
15.22%

10.
Crane
$736,796
15.14%

11.
H.J. Heinz
$635,988
14.78%

12.
Wrigley
$603,877
14.65%

13.
Fortune Brands
$580,025
14.55%

14.
Kroger
$546,793
14.41%

15.
Schering-Plough
$537,050
14.36%

16.
Proctor & Gamble
$513,752
14.26%

17.
Hershey Foods
$507,001
14.22%

18.
Wyeth
$461,186
13.99%

19.
Royal Dutch Petroleum
$398,837
13.64%

20.
General Mills
$388,425
13.58%

Source: Jeremy Siegel, The Future For Investors


Look how the drug companies dominate this list (along with consumer brand-name stocks). Only six pharma stocks survive today in their original form, and all six made it into the top 20 best performers. This is Siegel's "phenomenon."

"As long as firms in the sector do not stray too far from their historical average," concludes Siegel, "firms in healthcare are likely to outperform the market over the next fifty years..."

[billyjoe]

Pete,
I think MO will do okay even with declining number of smokers domestically. Their directors are smart guys and will be slowly getting away from tobacco in my opinion. PM is a real sleeper . A very few years from now many will be kicking themselves for not getting in at the low 50 dollar level.

--------------billy

[altria89]

Is anyone else getting in on MO around the price they stand currently before they report earnings on April 24th? I bought in at 21.50, taking a dip today thanks to GE, really surprising day today so far.

[altria89]

Earnings Report on Apr. 24th. What's the sentiment here?

[billyjoe]

altria,
Should be great but it will reflect the growing market outside the U.S. while future reports will probably show the declining number of smokers in our country and the diversification MO is taking to make sure growth is continuous.

--------------billy

[altria89]

Yeah very true. The spin-off should really help give them a boost.

[billyjoe]

altria,
What do you see in the future for MO as far as them getting away from cigarettes?I know it's still tobacco but it's interesting that they're heavily into cigars also with ownership of John Middleton Inc. Black and Mild cigar company. They go way back to the 1850's.

----------------billy

[altria89]

I read about them getting involved with Black and Mild's. I'm up in college and you see a ton of kids with them Black and Mild's late at night outside. The Cigar Industry is a great industry to get into. Everyone loves to smoke Cigars in the U.S. which they need to break into as everyone was Phillip Morris International (PM) more than Altria due to how big cigarettes are internationally and how they continue to grow rapidly while slowing done here in the U.S.

[skiracer]

I read about them getting involved with Black and Mild's. I'm up in college and you see a ton of kids with them Black and Mild's late at night outside. The Cigar Industry is a great industry to get into. Everyone loves to smoke Cigars in the U.S. which they need to break into as everyone was Phillip Morris International (PM) more than Altria due to how big cigarettes are internationally and how they continue to grow rapidly while slowing done here in the U.S.

they make their money on cigarettes. the cigars is just a play on the new in thing. i bet if you check out the numbers on the cigars sales it would be nominal compared to the cigarette sales. they sell cigarettes and cigarettes kill eventually. God bless them. if people want to smoke cigarettes then somebody is going to make them and sell them to the assholes who want to smoke cigarettes. those who want to put smoke into their lungs should all be smoking the juan. it is enlightening and not anywhere as damaging as cigarettes. i am a living testament to the fact. been into it since i was 15 or so and now am 63 and going as strong as ever. it's organic versus chemical. the chemicals will kill you every time.