Seeking Alpha

Goldman Sachs upgrades Philip Morris (PM) to a Conviction Buy List rating. The firm calls the...

Goldman Sachs upgrades Philip Morris (PM) to a Conviction Buy List rating. The firm calls the company the best combination of growth and yield amongst the large-cap consumer staples stocks.
Comments (5)
  • tom tom
    , contributor
    Comments (58) | Send Message
     
    PM has been a good stock for the long term,I think it will get much better in the future !! This may sound crazy but I look for the STATES to make WEED legal in the near future. From growing to marketing to distribution it will be a cash cow. Just imagine the jobs that it will produce. Like the Natural Gas boom legal weed is coming. Companies like PM are just waiting to jump into the game,it will happen soon !!
    11 Jan 2013, 08:58 AM Reply Like
  • Snoopy1
    , contributor
    Comments (1107) | Send Message
     
    PM doesn't operate in the U.S., MO does. So PM can't benefit from marijuana legalization.
    11 Jan 2013, 10:45 AM Reply Like
  • Beta_Adjusted
    , contributor
    Comments (60) | Send Message
     
    The biggest risk with PM in 2013 is FX (strong $, weak Euro). That said, the $ can't be allowed to strengthen too much as it will scupper the manufacturing renaissance, which in turn will cause a renewed slowdown in the rest of the world. Generally I prefer US tobaccos due to the FX risk. Lower growth but much lower risk! Also better valuations, especially Lorillard. Just look stability of annual revenue growth over last 5 years! But all of these companies are a buy, except perhaps Reynolds American. Even that is probably a buy. You are getting total return yields of 7% - 8%+ from all these companies, with the promise of decent dividend growth. Compare that with the yields on offer from corporate bonds, consider the growth (target eps gwth ~+10% for all these companies, perhaps 8% for US only stocks), consider the risks ... Ignore the analysts, they have no real clue how to value companies or invest (I used to speak to them all. They are good but all sit on the fence when it comes to Buy/Sell, Tobacco is a boring sector with few 'catalysts')). All these stocks have at least 50% upside, possibly 100%. You will get this over time as the companies continue to deliver growth.
    11 Jan 2013, 09:10 AM Reply Like
  • donlsales
    , contributor
    Comments (117) | Send Message
     
    I like LO and MO also. The last three years tobacco stocks traded lower after mid January, creating a great entry point. I am accumulating some cash and will buy some more LO ahead of the dividend increase, which I think could be ten percent. That would raise the payout to $6.80 per share, before the stock split.
    11 Jan 2013, 10:44 AM Reply Like
  • abbyandandrew
    , contributor
    Comments (28) | Send Message
     
    I have owned all the tobacco stock since 1983! Each outpaced and outperformed all comparable stocks. Currently own PM which in my opinion is the best of breed. Simply stated if an investor wants to make real money there are few other stable choices. I will hold this stock until I die. GO PM!
    11 Jan 2013, 02:30 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|