Nobody seems to notice the fact that PM announced they are spending $2 billion on “E” Cigs and you have to understand–if anybody is going to sell an E-Cig–it’s going to be PM. It’s a big deal, in a big business. It’s just another thing for the shelf space, and this is about SHELF space, and who has that locked up?
There is no better monopoly than cigarettes, is there? Cigarette companies enjoy a non-compete environment, thanks to Uncle Sam. I don’t think PM will drop much lower, and at around $85-88, this is a good time to get this one–4.2% dividend and plenty of upside. Remember, tobacco growth profiles are hard to find, and PM is the coolest ciggie company of all.
Robert B. Howard, Positive Patterns, 417-887-4486, November 22, 2013
Second opinion…Philip Morris (PM)
from Argus Vickers Weekly Insider
On November 26, Director Sergio Marcionne of Philip Morris International Inc. (PM) purchased 1,000 shares of the stock, increasing his holdings to 52,687 shares. Argus analyst Nathaniel Gabriel noted the following in his most-recent report on the company. “Philip Morris reported second quarter 2013 sales after excise taxes of $7.9 billion, down 2.5% from the prior year. In the Philippines, a major market for PM, the excise tax implemented at the beginning of 2013 reduced legal cigarette shipment volume by 16.5%, and hit second quarter 2013 results significantly. After the stock’s slide in the second quarter, Argus sees considerable upside and maintains a BUY rating on PM.
Argus Weekly Insider Report, www.vickers-stock.com, 516-945-0020,December 2, 2013