Should I keep Altria?

Originally posted 2011-06-30 02:28:40

A few nights ago on Mad Money, Jim Cramer looked at tobacco companies. He went over four: Altria (MO), Phillip Morris (PM),  Lorillard (LO) and Reynolds American (RAI). I have MO. He recommended that people only hold PM.

The federal government wants to put more warning labels on cigarettes, so this will hurt cigarette sales in the USA. Smoking has been on the decline in the USA for decades. Plus it can be an expensive habit. So it will probably decline further.

PM gets its sales from other countries. The other three get all or most of their sales from the USA. MO is getting into products other than cigarettes, but he called it a “good house in a bad neighborhood.” I think I will sell MO. I don’t know if I will get PM, or use the money to buy something else.

MO has gone down a lot over the past few days. The other three went down a bit, but seem to have recovered. Revere the power of The Cramer. I have held MO for about a year.

Disclosure: Own MO, thinking about getting PM

Image from Altria Twitter Profile


Page created on 2011-08-21_10:57:44, last modified on 2022-02-16_9:14:57.

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