Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Zacks Bear of the Day - Altria Group (MO)

|Includes:Altria Group, Inc. (MO)
Zacks turns negative on Altria...
July 29, 2009

Altria Group (MO - Analyst Report) is the leading domestic tobacco company, which generates significant cash flow and the stock has a high dividend yield. In an effort to expand into adjacent categories, Altria acquired UST, the world's leading moist smokeless tobacco manufacturer.

However, the company is engaged in numerous tobacco liability suits. Several large punitive damage awards have been upheld, most recently the $79.5 million judgment in the Williams case in 2009.

In addition, the 150+% federal excise tax increase should dramatically reduce cigarette volume. A Sell rating is recommended.
Stocks: MO