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MO - I like this micro setup
Altria comprises Philip Morris USA, U.S. Smokeless Tobacco, John Middleton, Ste. Michelle Wine Estates, Nu Mark, and Philip Morris Capital. It holds a 10.5% interest in the world’s largest brewer, AB InBev. Altria holds the leading position in cigarettes and smokeless tobacco in the United States and the number-two spot in machine-made cigars. The company’s Marlboro brand is the leading cigarette brand in the U.S.
I like this deep corrective looking decline in $MO structured a Triple Three corrective structure. It follows a really strong rally that looks impulsive. From here we may get another rally in wave A of 3 with a target over $60.
MO - 45 min updated at 1-20 PM on 8-6-2019
Financial Strength
Exceptionally strong financial position of $MO is manifested by Net Margin of 25%. It’s management team shows a brilliant results in re-investing profit with Return on Capital exceeding 500%. The debt load is manageable and equals to 2.8 EBITDA. The cherry on top is 6.9% dividend yield!
The stock has been declining bThey dumped the stock because of fear that the company would lose the market to e-cigarette.
But the Chief Executive Howard Willard said that Altria is “best positioned among tobacco peers” because of its rights to the IQOS device and investments in Juul and On!, a nicotine patch. I am a buyer here.
Operating Margin
39
Net
Margin
25
Return on Capital
536
Price-to-Free-Cash-Flow
13
Debt-to-Ebitda
2.8
Dividend Yield
6.9
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