MmeEmil
Introduction:
The tobacco industry is one which has long fascinated me and an industry which I’ve been bullish on for quite some time, as a result, I’ll be initiating coverage on a number of tobacco company’s, starting with Altria (NYSE:MO).
Altria offers investors an incredible yield of around 8%, coupled with occasional buybacks and a durable business with little threat to it from new entrants, all things which have made me very bullish on Altria at multiple times when I thought the price was opportune over the last number of years.
That being said, Altria’s cigarette sales volumes are starting to show potential issues for the business going forward that weren’t present in the past. Furthermore, the business has rallied about 25% over the last few months.
Going into this rally and prior to these revenue generation challenges, I was of the view that Altria was likely significantly undervalued. Post these recent events, I do…
