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NOW IS NOT THE TIME FOR investors to quit cigarette maker Philip Morris International (ticker: PM).
Down 17% since touching a 20-month high in April, shares of the company -- also known by the acronym PMI -- have gotten walloped by a strengthening U.S. dollar and economic turmoil in Europe, where the cigarette maker gets roughly 40% of sales.
Many investment pros say that the Street's current forecast of a 15% profit jump in 2010 is too high.
Yet at just over 11 times forward earnings, Philip Morris has rarely been this cheap.
Disclosure: Long in PM and MO.
Last edited by greenmartian; 07-03-2010 at 01:07 PM..
I did very well in 2009 with RAI. Bought in March at the low around $35 and sold 9 months later at about $53, and collected very nice dividends along the way. Sin stocks like tobacco can be very good investments if you can get in at the right time.
i hate the product so it's a moral thing for me in not buying it, but from a pure investment standpoint, you are correct.
I have been breathing the second-hand smoke of smokers my entire life. I had no choice. Smokers make that choice to smoke. Thus, I have NO moral issues against investing in cigarette companies. Go MO and PM!!
I did a lot of work with Philip Morris over the years and, IMHO, they are probably the best run company I have come across. In addition, they are very investor friendly. Anyone who bought their stock in 2000 would be looking at 600%+ return plus excellent annual dividends.
Sadly, for reasons of professional independence, I was never able to buy their shares. Otherwise, I would be a multi-millionaire today.
I have been breathing the second-hand smoke of smokers my entire life. I had no choice. Smokers make that choice to smoke. Thus, I have NO moral issues against investing in cigarette companies. Go MO and PM!!
Me too....now that I'm long, I encourage all really attractive people to smoke and set an example for kids that if they want to be considered pretty...
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