The Case For BIG MO

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  • Peter Hansen
    Banned
    • Jul 2005
    • 3968

    The Case For BIG MO

    Most of you know that MO is the symbol for ALTRIA Parent Company of , Phillip Morris, US Smokeless Tobacco , John Muddleton,Ste. Michelle wine Estate and Philip Morris Capital .
    First let me say, I DO NOT Smoke and hate smoking ....but everyman has his own poison and should be free to choose!

    SOME SALIENT POINTS!

    1. MO is CHEAP selling at just 7 times earnongs.
    2. MO sells Marlboro , Copenhagen, SKOAL and Black And Mild.
    3. Why buy Tobacco? Well sales are BOOMING in the foreign markets . The Asians and Europeans can't get enough of the cancer sticks.
    4. MO does not need a bailout ....they are sitting on 16 BILLION in CASH!
    5. A WEAK dollar will favor MO because a great portion of revenue is generated overseas. Obama's Stimulus package will undermine the dollar and prove to be inflationary.
    6. MO has a SWEET Dividend currently 7.6% ,revenue is growing at 3.5% annual rate and has operating margins of 32%
    7. The government is considering a bill to make it more difficult for cigarette makers to enter the market. BIG PLUS FOR MO!

    Well there ya have it ...I rest my case. I am not politically correct and realize that people will take drugs, use tobacco and chase Poon Tang and Poon Yang .....but hey that is the way it is .

    (Speaking of DRUGS , an article in Sunday's 3/29/09 NY POST , stated that ASHLEY BEIDEN, daughter of JOE BIDEN ,The Ahem ...DRUG CZAR , and now Vice President was filmed at a party doing a big line of coke. Now, you have to ask yourself .....if the big, blow hard Drug Czar Joe Beiden cannot stop his own daughter from doing drugs ......What possibly can he do in the "War On Drugs"......My opinion is that he will be effective as a "Wart On A Frog's Ass! LOL ) Incidently the video is for sale to the highest bidder .....going price now is $400,000!)
  • hags
    Senior Member
    • Jan 2008
    • 206

    #2
    I'd have to disagree....MO looks like a nice short setting up if you ask me....and besides:



    hags

    Comment

    • Peter Hansen
      Banned
      • Jul 2005
      • 3968

      #3
      Hags

      Originally posted by hags View Post
      I'd have to disagree....MO looks like a nice short setting up if you ask me....and besides:



      hags
      HAGS Thanx for your opinion ....but the following quote from you article says it all.

      "Standing outside a Washington department store, attorney Margaret Webster, 42, puffed on a Marlboro Ultra Light and lamented the fact that the government is reaching deeper into her pocketbook.

      "I don't think we (smokers) like it," she said. "But I've heard so many people say they were going to quit when the price went up ... and they're still smoking."

      People have very little will power, and won't or can't quick. A man I worked with was dying of prostate cancer .....and while on his death bed in the hospital .....he would still sneak a smoke in the lavatory.
      Of course he died shortly thereafter. He had been a smoker all his life,and was also an alcoholic. He joined AA and managed to remain sober for years , BUT he could NEVER wean himself off the cancer sticks!

      Comment

      • billyjoe
        Senior Member
        • Nov 2003
        • 9014

        #4
        Pete,
        I've owned both MO and PM and like PM better. US smokers are declining at rate of about 3% per year while internationally, especially in Asian countries, smokers are increasing at least at a >3% rate.

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

        Comment

        • Peter Hansen
          Banned
          • Jul 2005
          • 3968

          #5
          Billie good point

          Originally posted by billyjoe View Post
          Pete,
          I've owned both MO and PM and like PM better. US smokers are declining at rate of about 3% per year while internationally, especially in Asian countries, smokers are increasing at least at a >3% rate.

          -------------billy
          Billie good point... had you been with MO a long time , because of spin offs you would also own KFT and PM! Now the only reason to hold MO would be for the almost 8% dividend!

          Comment

          • billyjoe
            Senior Member
            • Nov 2003
            • 9014

            #6
            Pete,
            Yes, I did get the spin offs and since have sold MO and KFT. Actually my son's Roth is the only one still holding PM. In the long run he'll do well with it. Kind of a throwback to the good old Blue Chip buy and hold stocks.

            ---------billy

            Comment

            • mrmarket
              Administrator
              • Sep 2003
              • 5971

              #7
              MO kills people but if you owned their stock since Pete brought this up, you would have made 50% plus a great dividend along the way. Ethical dilemma...hmmm.

              =============================

              I am HUGE! Bring me your finest meats and cheeses.

              - $$$MR. MARKET$$$

              Comment

              • billyjoe
                Senior Member
                • Nov 2003
                • 9014

                #8
                I superimposed a MO chart over a PM chart for the last year and they end up almost at the same place, up 23-24%. By reinvesting dividends my son is up 44% on PM and I'm up 37% having owned for a shorter time period. MO is paying > 2% more in dividends. I hate smoking also but I can't stop others and it is still legal in the US. If we start buying stocks using moral scorecards there wouldn't be many to buy.

                I owned shares in the PAX World Fund, known for ethical and green investing. It lost money while the rest of the market was booming.


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

                Comment

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