I really need to revisit LO. It is heavily reliant on Newport, so it deserves a discount compared to MO, but ATM it seems cheap. MO, like nearly all high quality dividend stocks, seems to high ATM. I also have some spare cash, and it is waiting for a pull back.
One of the great things about SA is that it brings together all sorts of different approaches to investing. With high-quality stocks like PM, I prefer to 'buy and hold'.
MO is getting frothy at these levels. RAI is just the "dog" opf the group, and should have the lowest PE... However, LO has a major risk factor with the possible ban of the use of menthol...
1. LO is cheaper for a reason, mainly due to a possible ban of menthol in cigarettes... this is a huge risk factor, as Newport represents the vast majority of revenue for LO.
2. I agree that the domestic tobacco stocks are one of the better places for yield in this market. MO in particular was a bargain when it was close to a 6% yield.
3. Okay, LO has better growth, however, it has greater risks, hence the lower PE.
4. On your last point about price to sales: Remember that PM is an in international tobacco stock while the others are more focused on the US market.
Apple Proves That Cheap Stocks Often Get Cheaper [View article]
richbar,
let us assume that Apple's EPS declines 25% for 2013 compared with 2012 (which is a big assumption btw), the company earned $44 last year, so this leaves us with EPS of $33, for a PE of 13.. for a comparsion, KO has close to a 20pe
With A 12% Yield, QR Energy Is On Sale [View article]
rfeinblatt,
You are entitled to your opinion, however how did you calculate that the DCF coverage ratio would drop to less than 1X this year? Using the Q4 realized prices for Oil, nat gas and NGL and the provided guidance , I did some back of the envelope calculations, and came up with 1.18X for the FY 2013.
With A 12% Yield, QR Energy Is On Sale [View article]
John,
So, if management does a good job and increases assets by 15%, then they get rewarded. Seems like the want to align the interests of the GP with the unitholders...
Philip Morris Is Not Too Expensive [View article]
Philip Morris Is Not Too Expensive [View article]
One of the great things about SA is that it brings together all sorts of different approaches to investing. With high-quality stocks like PM, I prefer to 'buy and hold'.
Phillips 66 Catalysts Include Dividend Growth And MLP Spin-Off [View article]
Philip Morris Is Not Too Expensive [View article]
MO is getting frothy at these levels. RAI is just the "dog" opf the group, and should have the lowest PE... However, LO has a major risk factor with the possible ban of the use of menthol...
Philip Morris Is Not Too Expensive [View article]
Why not do a pair trade then? Go long LO, short PM....
Philip Morris Is Not Too Expensive [View article]
1. LO is cheaper for a reason, mainly due to a possible ban of menthol in cigarettes... this is a huge risk factor, as Newport represents the vast majority of revenue for LO.
2. I agree that the domestic tobacco stocks are one of the better places for yield in this market. MO in particular was a bargain when it was close to a 6% yield.
3. Okay, LO has better growth, however, it has greater risks, hence the lower PE.
4. On your last point about price to sales: Remember that PM is an in international tobacco stock while the others are more focused on the US market.
Occidental Petroleum: A Solid Grower With A 3% Yield [View article]
I actually own the very similar COP. I think both OXY and COP are undervalued and offer good yields.
Apple Proves That Cheap Stocks Often Get Cheaper [View article]
let us assume that Apple's EPS declines 25% for 2013 compared with 2012 (which is a big assumption btw), the company earned $44 last year, so this leaves us with EPS of $33, for a PE of 13.. for a comparsion, KO has close to a 20pe
Apple Proves That Cheap Stocks Often Get Cheaper [View article]
Apple cannot afford to share space with Samsung in the "top tier" smartphone market.. the iPhone is Apple's cash cow
Apple Proves That Cheap Stocks Often Get Cheaper [View article]
I totally agree with you on PGH... http://bit.ly/Z5mfTe
Long PGH
I really do hope that Apple raises its dividend soon. an increase to 40% of TTM eps would give apple a 4% yield...
With A 12% Yield, QR Energy Is On Sale [View article]
I missed the boat on MMP. Was waiting for a better price, not its up 20% since I last reviewed them!
With A 12% Yield, QR Energy Is On Sale [View article]
With A 12% Yield, QR Energy Is On Sale [View article]
With A 12% Yield, QR Energy Is On Sale [View article]
You are entitled to your opinion, however how did you calculate that the DCF coverage ratio would drop to less than 1X this year? Using the Q4 realized prices for Oil, nat gas and NGL and the provided guidance , I did some back of the envelope calculations, and came up with 1.18X for the FY 2013.
With A 12% Yield, QR Energy Is On Sale [View article]
So, if management does a good job and increases assets by 15%, then they get rewarded. Seems like the want to align the interests of the GP with the unitholders...