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Strategies & Market Trends : Value Investing

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To: Bob Rudd who wrote (16651)	3/19/2003 9:23:32 PM
From: Demetre Deliyanakis	Read Replies (1) of 78647

I have owned MO off and on for about 10 years now. The litigation risk has always been there. I am not worried about the Justice Department latest lawsuit. I am sure that Bush will cancel it when the war with Iraq is over. When you buy MO, you are paying for KFT and SAB Miller. Tobacco assets are valued at close to zero. The free cash flow from MO, allows MO to buy back shares and pay an 8% dividend. The two year bond is around 1.6%. Do the math, and you will see that you can't lose unless Tobacco is banned in 2005.I think MO is a buy at $32 or under, and a sell in the low $50's. I own MO now, and picked up some recently around $35. I will buy more at $32. Look in your fridge and cupboard at home and see how many Kraft,Nabisco,Miller, products you have. Chances are you have them there. I think Peter Lynch would love to buy shares in a company like this because it is easy to understand.I am always surprised Buffett did not buy shares in MO or KFT. It is a classic value stock Demetre

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