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Joergens

 
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  • PMI vs. Altria: Dividend Payments From A Foreign Taxpayer's Perspective [View article]
    Thanks for reading my article.
    From experience I know that many brokers don't know about the 80/20 company tax rule and don't want to be bothered about it, in short, even if you switch brokers it probably won't help much.

    I think the reason for that is that brokers usually don't do tax withholding computation in-house but use another service company, a so called tax withholding agent.

    My advice to you is the following:
    1. get in touch with FINRA and file a mediation case to get back past withholdings, see my article point 6.
    2. PM outlines on its website under Investor Relations what an 80/20 company is and how to compute dividend withholding tax. show that to your broker and ask them to forward it to their tax withholding agent.
    3. Ask them to get in touch with PM or vice versa.
    PM Investor Relations is very supportive.

    good luck and don't give up, the talk about you having to consult a tax lawyer is just an excuse.

    And I don't wish to name my broker here, sorry
    Jul 18 04:13 AM | Likes Like |Link to Comment
  • 1993's '100 Best Stocks': How They Fared [View article]
    it's good that you focus on history.
    however, I am afraid 20 years is not long enough.

    Jeremy Siegel has done something similar, looking at 50 years.
    I also recommend the book "Fooled by Randomness"

    much luck investing !
    Nov 18 12:28 AM | 1 Like Like |Link to Comment
  • Big Tobacco Cashing In On Oriental Women [View instapost]
    In addition to my blogpost I recommend following reading:

    More mainland girls smoke than officials claim, says researcher

    available at :
    http://bit.ly/11dL1GM

    My recent ( 3/2013) personal observations in Beijing are that many women can be seen casually smoking on the streets, usually they stand around at one spot and smoke before they continue walking.

    This is a big change to the situation 3 years ago when I lived in Beijing,
    so many women either had their "coming out" or they have taken up smoking and don't care that someone is watching them.

    However, you still don't see as many women smoking as in Western countries.
    May 7 12:41 AM | Likes Like |Link to Comment
  • Philip Morris: Still A Buy At 1-Year High [View article]
    that's right, I think 35% in US.
    (Whereas the companies who deal in Marijuana can't even deduct normal business expenses due to IRS regulations, I have read.)

    And on top of that you have inflation.
    Apr 11 12:24 AM | Likes Like |Link to Comment
  • Philip Morris: Still A Buy At 1-Year High [View article]
    Look at it like this: they issue corp bonds in the range of 0.85 to 2.5% yield ( depending on the currency ) and buy back stock for which they would have to pay a yield of more than 3% or sometimes 4%, depending on the stock price. So it's a good deal.
    When interest rates rise PM is indebted at dirt cheap rates.

    On a sidenote, I have read that many stocks' div. yield approaches the
    company's refinancing cost ( which in these days is done through corp bond issuance instead of bank credits ).
    So I see a rise for PM's stock price this year, by comparing refinancing costs in 2008 with 2013. check their fixed income info.
    Apr 8 02:51 AM | Likes Like |Link to Comment
  • Philip Morris: Wait For The Pullback [View article]
    Thanks, Bill.
    I vividly remember the last pullback opp. you published here turned out to be a $1.50 plunge aka as market fluctuation. Appreciate all your hard work!
    Apr 4 10:24 PM | 1 Like Like |Link to Comment
  • Philip Morris, Imperial Tobacco, British American Tobacco, Altria Group: Which Is A Better Buy For 2013? [View article]
    PM International is a 80/20 company.
    Thus most of its dividend is tax free for international investors,
    see my article.
    It's the best deal for me.
    Mar 15 03:01 AM | Likes Like |Link to Comment
  • Philip Morris Is Not Too Expensive [View article]
    Finally an article from someone who actually owns PMI.
    So I guess you have put more effort into researching it than
    the Bills & Maurers here.

    I am sorry, I have not read through your whole article
    but I agree with you that PMI is a great investment.

    As to your statement "While Philip Morris has risen 9% YTD, it has actually underperformed the broader market. In the past year, Philip Morris has only increased 7.63%, compared with 13.11% for the Dow and 13.56% for the S&P."

    Well, that is exactly why long term investors into PMI get rich.
    They use the dividend proceeds to buy more stocks at a cheaper price as opposed to hyped up companies such as Apple.
    Mar 12 02:33 AM | Likes Like |Link to Comment
  • Philip Morris: Step To The Sidelines [View article]
    Thanks. It shows what your previous article / advice was worth, a dollar fifty or so.

    I won't comment on this article as I did not read it.
    Feb 26 10:23 PM | Likes Like |Link to Comment
  • What We Think Of Philip Morris' Valuation [View article]
    Did you do the math?
    An approx 10% raise lifts dividend to $ 3.74 this autumn.
    that divided by $ 87 amounts to 4.3%.
    that is what PMI has to pay for every stock out at that price level.
    So they love selling corporate debt bonds for well under 3%
    and buy back stock with the proceeds.
    So it all makes sense as long as their bond financing is lower than what they pay in dividend to shareholders.
    AND raise EPS as shares will be retired.
    Feb 24 12:44 PM | 3 Likes Like |Link to Comment
  • What We Think Of Philip Morris' Valuation [View article]
    Go to PMI investor Relation November 2012 presentation.
    In it you will find PMI's true capital cost.
    Then compare their capital cost history with the dividend rate development,
    you will discover that there is a correlation, dividend divided by
    avg capital cost, the year by year results and the stock price are very close.
    This year assuming a ten percent dividend raise and further falling capital cost (as they buy back stock that yields over 3% partly with money from debt issuance between 1 to 2 % ) I see PMI at $ 110 to 125 by the end of this year. If the market tanks it might fall with the market somewhere into the $ 70 range but I doubt it as it pays an almost tax free dividend to foreign investors. See my article.
    Disclosure: 90 % PMI, and Altria on top of that.
    Feb 23 05:18 PM | 3 Likes Like |Link to Comment
  • Philip Morris: Time To Load Up Some Shares [View article]
    All that you need to know as investor is that PM and MO
    have an outstanding corp. gov. with focus on shareholder return.
    What needs to be done will be done
    Feb 21 09:41 AM | Likes Like |Link to Comment
  • Philip Morris: Time To Load Up Some Shares [View article]
    I am way more than that, and I have done my homework, see my instablog, that's why.
    Btw, from memory I think PM raised dividend more often than mentioned in this article, so the author probably did not put much effort into writing this.
    However, I see PM up, mainly due to its low financing cost.
    They issue low yield company bonds to buy back high yielding stocks, it makes sense and can be maintained as long as major currency interest ratea remain low.
    Feb 19 07:49 PM | 1 Like Like |Link to Comment
  • Philip Morris Continues To Be A 'Best Of Breed' Dividend-Growth Stock [View article]
    I have written something
    Feb 7 11:40 PM | 1 Like Like |Link to Comment
  • Philip Morris Continues To Be A 'Best Of Breed' Dividend-Growth Stock [View article]
    Do you know what cost is?
    PMI's capital cost is decreasing, you can find the info
    in one of their presentations, I think from November.
    And that is another reason why the stock is up.
    PMI places low yield debt bonds and buys back high yield stocks.
    I have observed there is a correlation between PMI's cost of debt,the dividend rate and the stock price.

    As to China, check my instablog
    Feb 7 11:32 PM | Likes Like |Link to Comment
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