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Larry Smith

 
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  • Altria: This 5% Yielder Is My Next Buy [View article]
    One other thought that just came to me. Unlike the US, many European, Asian and South American countries have large illicit trade activities. The illicit trade cuts into the business a PMI, or other company can generate. With parts of Europe in never ending recession, the illicit trade traffic has increased as consumers look for cheap smokes.
    Mar 3 12:11 PM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Yes i do memshu. Whenever I invest in a sector, I like to buy the best company. I own KO in beverages, MCD in quick service restaurants, XOM in energy, WAG in retail, etc. Imperial Tobacco is a light weight in the tobacco business. The brands they have, are for the most part, second-tier brands, for example, in the US, a market they say is a growth market, their cigarette brand is USA Gold. They do sell cigars and other products, but in general, I do not consider them "best of breed"

    Having said that, you can make money in any investment, best of breed or not. However, if it was me, I would look to own the best.
    Mar 3 12:07 PM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Hi grox, I owned PMI several years ago and had a nice return on it. However, they have a lot currency concerns and their business model is strictly selling cigarettes. I listened to their presentation at CAGNY and quite frankly I stopped half way through it because I could not follow what they were saying. Having said that, PMI is a fine business which is having short-term problems from currency. Foreign smoking rates are much higher than in the US, however, many countries like Australia, Russia and several European countries are trying to crack down. Hard to believe, but I think the regulated environment in the US for Altria is more stable than what PMI has to deal with.
    Mar 3 11:35 AM | 1 Like Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Thanks for the comment shaz, I agree with your advice, time and reinvesting will work the magic.
    Mar 3 11:08 AM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Appreciate the comment Big and good pick-up on the Larry Mo Curly thing. As a fan of the Stooges, I take no offense. Glad you liked the article.
    Mar 3 11:06 AM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Hi Paul, thanks for the comment. I think about the moral question with owning MO all the time and I understand those who refuse to invest for the reason you stated. Much like the separation of church and state, I try to separate investing from so-called socially responsible investing. I have had people criticize my KO investment and you saw on my recent MCD article the number of people who criticized MCD for unhealthy food and causing obesity. As long as the product is legal, I will consider investing in it. I don't believe my owning the stock puts me in the cigarette business anymore than I am in the oil business by owning XOM. I am an investor, not an owner.

    I understand and respect your view and appreciate your comment.
    Mar 3 11:04 AM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Thanks for the comment Gwyther, always happy to find an investor who has had good fortune shine on them.
    Mar 3 10:55 AM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Thanks Minutemen, appreciate the comment. The e-cigarette deal is what closed the deal for me. I think that is another future money maker for MO. I also wouldn't be surprised if they bought another liqueur company.
    Mar 3 10:54 AM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Thanks for the comment slam, I have sworn off banks, every five-years they have a crisis. I now focus on products I am confident will be around in 10-years, that includes the tobacco stocks. Good luck.
    Mar 3 10:51 AM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Thanks for the comment Car Buyer, for years there have been rumors that the tobacco companies were ready for marijuana to be legalized and would quickly roll-out product. hasn't been the case so far and not sure if it ever will be. We shall see.
    Mar 3 10:49 AM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Thanks for the comment halifx. The cash flow for retirees is great, a dividend that grows faster than inflation.
    Mar 3 08:43 AM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Thanks for the comment max, the returns for MO pile up over the years, not a stock one should expect a big bump in a year. In 10-years, one looks back and says what a great stock.
    Mar 3 08:41 AM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Good for you Churchill, a wise man. Good luck in the future.
    Mar 3 08:18 AM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Thanks for the comment dallis, quite a return you have, congratulations. Must be nice to see those dividends roll-in.
    Mar 3 08:17 AM | Likes Like |Link to Comment
  • Altria: This 5% Yielder Is My Next Buy [View article]
    Thanks for the comment gmansour. I got my information from several places, including the recent Altria presentation at CAGNY, where they stated what their market share is for their various businesses. At the conference they stated their market share was 50,7% for smokeless tobacco.

    Nailing down what their equity interest in SABMiller is was difficult, I found several different numbers, but the most often sided number was 26.8%.

    I mentioned in the article they have a capital, or as you described it a finance division, which they are winding down.

    You have benefited greatly, from your investment in Altria, congratulations. Wish I had held when I had it, but I will be back in shortly.
    Mar 3 08:15 AM | Likes Like |Link to Comment
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