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
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