Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Worswick who wrote (1608)	5/18/1998 9:43:00 AM
From: Pierre Aydin	Read Replies (1) \| Respond to of 6439

Anybody who compares MO to OXHP should have his head checked out. Pierre

To: Worswick who wrote (1608)	5/18/1998 11:48:00 AM
From: don kramer	Read Replies (2) \| Respond to of 6439

?What is it worth? ok, pay attention ... Let's keep it as simple as possible. From 1997 annual report. Income aka earnings from food + beer + financials + InTERNATIONaL tobacco = 8,500,000,000 U.S. Dollars [approximately] total indcome (earnings) = 11,600,000,000 U.S. Dollars in other words , without domestic tobacco income 73% of total OR Domestic tobacco is only 27% of MO's income. Now, your homework, is to compare the current p/e ratio of MO, with other similar world known consumer products, companies. i.e. General Mills, Nestle, Coca Cola, etc... etc... etc... look at there income from operations, and take out some item, such that you can closely compare apples to apples, etc..etc.. etc... you know the exercise. In my estimate, without Domestic Tobacco, MO might have a p/e of 28 - 30 so...current...earnings are estimated at, oh for 1999, say 3.35 , now reduce these earnings to the 75 % level assuming that the Senate and House and the Presindent, have convinced themselves, that all will be great as soon as the tobacco domestic business closes its doors. Now 75% of 3.35 estimate is about 2.50. Lets reduce 2.50, because, of other unforseen possibilities, plague, earthquake, all discovered to be caused by domestic tobacco. etc... so, estimated new earnings for 1999 2.40 estimated p/e = 25 to 28 so,.... estimated price of MO (without domestic tobacco) (2.40) x ( 25 to 28 ) == about +60.00 END OF LESSON. ANY QUESTIONS. GOOD, I AM BUYING, DK

To: Worswick who wrote (1608)	5/19/1998 4:51:00 AM
From: Thomas Haegin	Respond to of 6439

The hopeless optimist in me says that commonsense will prevail and that nobody will slaughter the goose that produces golden eggs... I fell the Kraft Food business is doing well, whereas in Beer, MO does not earn good returns on capital invested. I hope they can improve this business, otherwise I don't see why you want to be in it at all. MO's financial unit is growing rather quickly, albeit from a minuscule base from 1996 to 1997. I don't know yet whether there is a strategy behind it or just "luck". There is very little mention in the Annual Report. But I'll have an eye on the financial unit. Nothing being lost in being a spectator on MO for know. Greetings, Thomas