“Philip Morris International remains a buy, despite these difficult markets,” says Tom Slee in GordonPape’s Internet Wealth Builder. Here he reviews the global tobacco firm

track tom’s picks at:

http://trackthepros.com/stocks/category/552

“Spun off from the Altria Group earlier this year, Philip Morris International is off to a flying start.

“The company posted strong second-quarter earnings. After a special charge for its Rothmans acquisition, earnings came in at 81c a share, up from 69c a share the year before.

“The company had been reporting as a clearly defined division of Altria so it’s possible to make comparisons and plot progress.

“Gross revenues rose 17.6% to $15.6 billion with double-digit growth in all business segments, helped to some extent by currency benefits. Sales were particularly strong in Egypt, Russia, and Argentina.

“At the same time, the company is engaged in an extensive cost reduction program. It’s a positive picture and PM

...

“Philip Morris International remains a buy, despite these difficult markets,” says Tom Slee in GordonPape’s Internet Wealth Builder. Here he reviews the global tobacco firm

track tom’s picks at:

http://trackthepros.com/stocks/category/552

“Spun off from the Altria Group earlier this year, Philip Morris International is off to a flying start.

“The company posted strong second-quarter earnings. After a special charge for its Rothmans acquisition, earnings came in at 81c a share, up from 69c a share the year before.

“The company had been reporting as a clearly defined division of Altria so it’s possible to make comparisons and plot progress.

“Gross revenues rose 17.6% to $15.6 billion with double-digit growth in all business segments, helped to some extent by currency benefits. Sales were particularly strong in Egypt, Russia, and Argentina.

“At the same time, the company is engaged in an extensive cost reduction program. It’s a positive picture and PM

...

“Philip Morris International remains a buy, despite these difficult markets,” says Tom Slee in GordonPape’s Internet Wealth Builder. Here he reviews the global tobacco firm

track tom’s picks at:

http://trackthepros.com/stocks/category/552

“Spun off from the Altria Group earlier this year, Philip Morris International is off to a flying start.

“The company posted strong second-quarter earnings. After a special charge for its Rothmans acquisition, earnings came in at 81c a share, up from 69c a share the year before.

“The company had been reporting as a clearly defined division of Altria so it’s possible to make comparisons and plot progress.

“Gross revenues rose 17.6% to $15.6 billion with double-digit growth in all business segments, helped to some extent by currency benefits. Sales were particularly strong in Egypt, Russia, and Argentina.

“At the same time, the company is engaged in an extensive cost reduction program. It’s a positive picture and PM

...

Paulson & Company made the following KEY Q2 trades in its $6 billion hedge fund, which can be tracked at:

 

http://trackthepros.com/stocks/category/273

 

New Positions

Bank of America

Cheniere Energy

Philip Morris International

 

Sold

Alcoa

Altria

BCE

PDL BioPharma

 

Reduced Positions

Yahoo

Hercules Offshore

      

Helping itself to a much larger share of the faster growing "smokeless tobacco" market in the U.S. and overseas, Marlboro-maker Altria Group (MO) has announced it will be purchasing UST (UST) for $10.3 billion.  The buzz has indeed already begun to take hold: MO shares are up 2.2% thus far today, and UST is up 1.3%.

There has been minimal analyst estimate revision activity for either Big Tobacco firm in the past month.  The acquisition looks to provide synergies and profit growth, especially after Altria spun-off its profitable overseas counterpart, Philip Morris International (PM) this past spring.

Zacks senior consumer goods industry analyst Steven Ralston, CFA covers both companies, but has kept his Hold recommendations in tact ahead of September quarter earnings.  About Altria, he had this comment: "Several large punitive damage awards have been upheld by appellate courts, especially the $50 million judgment paid out in the Boeken

...

International tobacco is the way to go for investors who want to keep their money safe in this volatile economy, says Charles Norton, co-portfolio manager of Vice Fund.

Track his picks at:

http://trackthepros.com/categories.php?category_id=605

“We’re focused on sectors that have the potential to do very well regardless of economic conditions,” said Norton. The international tobacco industry represents one of many sectors.

“[The tobacco sector is] internationally a great business — not at all the same type of environment that we are seeing in the U.S.,” he said.

Recommendations:

Philip Morris International

PHILIP MORRIS INTL INC PM 54.21 -0.40 -0.73% NYSE

“They have broad geographic exposure — fantastic first-rate management

...

Altria (MO) has this way of giving you what you want and then panting for even more.

On Aug. 25th I posted “The litigation environment surrounding tobacco has not been this good in almost 20 years. Altria (MO) will take advantage of this to announce the PMI spin at the upcoming board meeting Aug. 29th.”

Altria obliged and gave me the spin I wanted to stopped short of announcing the huge dividend increases and share buybacks I also wanted. They did announce an almost 9% dividend increase to 75 cents a share and made no mention of share repurchases.