09-30-2014, 04:59 PM
Added a small opening position in PM today. I had to replace my LO with at least a partial tobacco holding. I wasn't interested in RAI or BAT as I think, with attitudes changing around the world, I wanted to stick with the market leader(s). LO owned the menthol market and had significant penetration into the e-cig market but merging with RAI would've diluted those attributes. MO was too highly priced right now. S&P is projecting high single digits EPS growth over the next several years, P/E is around 16 with a 4.8% yield. I believe currency fluctuations will vex them at times but, with leading brands, PM will weather it for at least the next decade or two.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan