Friday, April 9, 2010

Altria Group

Altria Group, Inc., (NYSE: MO) is involved in the manufacture and sale of cigarettes, wine, and other tobacco products in the United States and internationally. The subsidiaries of Altria are; PhillipMorrisUSA, US Smokeless Tobacco Company, John Middleton, Ste. Michelle Wine Estates and Phillip Morris Capital Corporation. It offers cigarettes under the Marlboro, Virginia Slims, and Parliament brands; smokeless tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands. The company was founded in 1919 and is headquartered in Richmond, Virginia.

Key Statistics

Revenue

$ 16.82 Billion

EBITDA

$ 6.63 Billion

Net Income

$ 3.20 Million

Operating Margin

19.06 %

Revenue Growth (Quarterly/yoy)

7.00 %


Reasons to buy

  • Alcohol and Tobacco are shown to be fairly recession proof products as they are viewed by users as necessities
  • High Dividend and Earnings yield - Motley Fool

Reasons to sell

  • Constant risk of litigation in the tobacco industry
  • Rising prices of tobacco products as a result of continued taxation could reduce demand for products and deter new customers

Recommendation: Hold


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