MG, Re: No MO for MO
MO - What an absolutely incredible bargain. Maybe!
A Big Boy with a dividend yield of 7.3%!! A Big Boy selling at about 50% of its high!! A Big Boy with some of the best brand names in America (Miller, Kraft, Oscar Meyer, and Jello - to name a few). A Big Boy with a PE of 10.7, which is about 2/3 of its 6 year year PE, and a ROE in the mid-thirties.
The first problem is that a lot of folks remember another Big Boy that got attacked on health issues. Remember John Mansville (sp?)? Of course, there are a few key differences. First, there are those non-tobacco brands. Second, MO seems to be in reasonable control of the situation.
Being (sadly) a smoker in the swamp, I believe that FL was the first, or one of the first states, to settle the "issue" with MO. I'm puzzled how MO was punished. The result, as I see it, is that the state got a bunch of money. Interestingly, when MO settled with the rest of the states, the cost to FL consumers also went up. This cost of doing business was simply passed on to the consumer. So, the swamp consumer is not being provided any assistance in quitting this nasty habit, but is paying about 40% more for the state-induced habit than a year ago. Can you patent this concept?
From a TA perspective, MO has a noticeable down trend line about $28. In the short-term, it seems that any entry at or below about $26 is duly rewarded. It goes ex-dividend 12/13.
FWIW
TB |
