Altria Group Inc., the smoke giant is traded on NYSE under the symbol of MO and in my opinion currently it is a BIG BUY.
Altria is liked primarily as an income-oriented value stock for conservative investing. Altria is supported by a huge dividend yield of 3.9%. Its P/E ratio is approximately 16.4, which is comparable to the industrial average and is lower than the S&P 500 average. Also, ß (a volatility measure) for Altria is equal to 0.78, which means that MO stock prices are less volatile than the market as a whole. But other than being a good dividend-yielding and low-risk value stock there is one more thing going right for Altria. I personally like Altria, because I think it can now grow.
Altria Group is the parent company of Kraft Foods (engaged in manufacturing and sale of packaged foods and beverages), Philip Morris USA and Philip Morris International (mainly involved in manufacturing and sale of cigarettes). Altria's management realizes that splitting its business into Kraft Foods, domestic tobacco and international tobacco would be beneficial, but it hasn't been able to restructure its business until now because of unfavorable litigation environment. Though it is common sense to avoid litigation prone and politically influenced industries such as tobacco, things look different now. The good news for 2007 is that the litigation prone Altria's involvement in lawsuits is now running low, allowing the management to carry out their restructuring plan. Because of this, Altria is enjoying loads of positive attention from the Street analysts who believe that Altria's restructuring will change the look of the cigarette industry.
Also, Altria is very committed in growing its business by continuously innovating and introducing new products in the market. The current growth trend in the smoking world is "smokeless tobacco" and Altria is one of the primary players along with Reynolds American (RAI). Currently, Phillip Morris USA is test marketing its smokeless tobacco product called "Taboka" in Indianapolis region and will look to introduce it nationally in the near future. I believe this will be huge for Altria as more and more people with increased awareness of the hazards of smoking will be switching to smokeless-tobacco.
Bottom line, Altria is currently one of the top value stocks with high dividend yield, low risk and bright growth prospects. I believe Altria is all set to deliver a good year. So, investors BUY MO and enjoy 2007. In my opinion it should make your life smokin' green.
Altria is liked primarily as an income-oriented value stock for conservative investing. Altria is supported by a huge dividend yield of 3.9%. Its P/E ratio is approximately 16.4, which is comparable to the industrial average and is lower than the S&P 500 average. Also, ß (a volatility measure) for Altria is equal to 0.78, which means that MO stock prices are less volatile than the market as a whole. But other than being a good dividend-yielding and low-risk value stock there is one more thing going right for Altria. I personally like Altria, because I think it can now grow.
Altria Group is the parent company of Kraft Foods (engaged in manufacturing and sale of packaged foods and beverages), Philip Morris USA and Philip Morris International (mainly involved in manufacturing and sale of cigarettes). Altria's management realizes that splitting its business into Kraft Foods, domestic tobacco and international tobacco would be beneficial, but it hasn't been able to restructure its business until now because of unfavorable litigation environment. Though it is common sense to avoid litigation prone and politically influenced industries such as tobacco, things look different now. The good news for 2007 is that the litigation prone Altria's involvement in lawsuits is now running low, allowing the management to carry out their restructuring plan. Because of this, Altria is enjoying loads of positive attention from the Street analysts who believe that Altria's restructuring will change the look of the cigarette industry.
Also, Altria is very committed in growing its business by continuously innovating and introducing new products in the market. The current growth trend in the smoking world is "smokeless tobacco" and Altria is one of the primary players along with Reynolds American (RAI). Currently, Phillip Morris USA is test marketing its smokeless tobacco product called "Taboka" in Indianapolis region and will look to introduce it nationally in the near future. I believe this will be huge for Altria as more and more people with increased awareness of the hazards of smoking will be switching to smokeless-tobacco.
Bottom line, Altria is currently one of the top value stocks with high dividend yield, low risk and bright growth prospects. I believe Altria is all set to deliver a good year. So, investors BUY MO and enjoy 2007. In my opinion it should make your life smokin' green.
4 comments:
read the review .. buy b4 jan31 is the word.. .a
saw your webpage !!!
strong idea
Can you please explain what you mean by "Altria is supported by a huge dividend yield ..."
High yield stocks are considered less risky because high payouts do support the share prices, esp. in a weak market.
Yield = Dividends paid in one whole year / current stock price. Thus, yield is inversly proportional to the stock price.
In a weak equity market, as stock price comes down yield increases. At this time income-oriented conservative investors come into play. They BUY the stock causing its price to go up.
Hope this helps !!
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