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Non-Tech : Philip Morris - A Stock For Wealth Or Poverty (MO) -- Ignore unavailable to you. Want to Upgrade?

To: Theo Karantsalis who wrote (4076)	7/1/1999 7:22:00 AM
From: Racso	Read Replies (1) \| Respond to of 6439

In a report dated June 29, Salomon ranks MO ahead of RJR due to superior fundamentals. Salomon expects MO to outperform RJR through year end. Salomon values MO at $57/share on a sum of operating units basis. 5) THE MARKET CAPITALIZATION OF RJR IS $3.5 BILLION WHILE THE DOMESTIC US TOBACCO OPERATIONS OF PHILIP MORRIS ARE BEING VALUED BY THE MARKET AT A NEGATIVE $8.2 BILLION. On the basis that all of the operating units of Philip Morris were independently listed, excluding domestic tobacco, they may be worth $71.35 per share. If we then apply a 20% discount to our estimated market value for each of these units (similar to the discount that the market is currently applying to Nabisco Group Holdings, NGH) the total value of these units on a per share basis is $57.08, or $16.08 more than MO's current share price.