It is unusual to see a tobacco company that is struggling to keep up with demand. Indeed, one of the biggest threats facing the tobacco industry right now is falling sales. However, demand for Universal Corp's (NYSE: UVV) tobacco is actually greater than the company has the ability to be able to supply.
Universal is a tobacco leaf producer, the company, through its subsidies grows and sells more »
The cigarette industry is controversial in terms of the impact it has on the health of the general public. Everybody is aware of the harmful effects of cigarettes, but do we know why? Activism by public health groups has gained exponential growth in the recent years and now we have doctors, television personalities, and other opinion makers educating about the harmful effects of cigarettes.
What does this mean for well-known more »
Before the announcement of second-quarter results, Philip Morris International (NYSE: PM) always had the edge over former parent company Altria (NYSE: MO). However, Philip Morris' poor second quarter highlights how the company is struggling to grow worldwide with many different factors pulling the company down, such as the strong US dollar, excise taxes rising faster than sales and competition.
Altria, on the other hand, is still growing thanks to the more »
Historically, defensive and high yield cigarette companies, such as Altria (NYSE: MO), Philip Morris International (NYSE: PM), Lorillard, and Reynolds American are currently looking slightly overbought as their yields and valuations reach five year highs. Indeed, despite the sell-off in the rest of the high yield sector, these companies have continued to outperform. That said, there is one company that is yet to catch up; tobacco grower and distributor Universal more »
With tough legislation and changes in domestic trends, many U.S. tobacco companies are struggling Investing in the best global tobacco companies provides the safest and most profitable way to protect your portfolio against a pullback in our bull market, should the need arise.
The tobacco industry is characterized by stable revenue growth and impressive cash flows. Most of the companies operating in the industry are mature and generate substantial cash flows. As a result, a large chunk of these cash flows is distributed among shareholders. The tobacco industry has some of the best dividend payers in the market, and investors choose these stocks due to the stability of dividends. These stocks provide stable more »
Benjamin Graham is the godfather of value investing and was Warren Buffett's mentor. Unfortunately, as he is regularly cited as the reason for Buffett's success, many people try to mimic his investing style, which is set out in his book The Intelligent Investor.
But with so many trying to copy his techniques, many have misread facts, often looking for quick fixes to beat the market and get ahead more »
Medical Marijuana (OTC: MJNA.PK) is the hot penny stock the moment but it is just a passing fad? In this article we show that even if the stars align as the bulls hope for with continued legalization of marijuana, the story may not end so positively for investors in this speculative marijuana play. If Marijuana were legalized the big tobacco companies could swoop in and easily take over this more »
Investing in dividend stocks is a great way to build long-term wealth. When most investors think of dividend stocks, they usually look to large-cap blue chips like Johnson and Johnson. However, companies that have paid and raised dividends for long periods of time can also be found among the small-cap universe of publicly-traded stocks. These four companies have paid and increased dividends for at least 15 years in a row more »
Governments around the world are getting tougher and tougher on tobacco companies. Investors should demand low valuations for these industry headwinds. Oddly, many of the industry stocks trade at high price multiples:
Alliance One International
British American Tobacco
0.81 more »
Tobacco stocks have historically showcased several key characteristics that have made them attractive additions to any portfolio. The goods are created from a renewable resource, they cost pennies to make and sell for many multiples of their input costs, and garner an unmatched level of consumer loyalty. As such, players within the industry have generally enjoyed ever-increasing top lines as the worldwide population has grown, and a meaningful level of more »
“I’ll tell you why I like the cigarette business. It costs a penny to make, it sells for a dollar, it is addictive, and there’s a fantastic brand loyalty.”
Although controversial from a health standpoint, there can be no doubt that the manufacturing of tobacco and cigarette products, for reasons value investing guru Buffett outlines, can make for excellent business opportunities. Most of the attention this more »