Altria Group (MO) – Bear of the Day
Source: http://www.zacks.com/commentary/11654/Altria+Group+%28MO%29+-+Bear+of+the+DayPosted on Wednesday, July 29th, 2009 | In Market Commentary, Stocks to Watch
Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -
Altria Group (MO) is the leading domestic tobacco company, which generates significant cash flow and the stock has a high dividend yield. In an effort to expand into adjacent categories, Altria acquired
UST, the world’s leading moist smokeless tobacco manufacturer.
However, the company is engaged in numerous tobacco liability suits. Several large punitive damage awards have been upheld, most
recently the $79.5 million judgment in the Williams case in 2009.
In addition, the 150+% federal excise tax increase should dramatically reduce cigarette volume. A Sell rating is recommended.Zacks Investment Research
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