The above chart I created at 2 p.m. during the market tops occurring on Friday.
Actually, PM is a way to play against the declining value of the USD.
Facts:
1. The company books nearly 100% of its sales in international markets
2. PM owns 16% non U.S. market share, seven of the top 15 international brands, and margins over 40%.
3. They have no shame and target the youth in developing countries with a vast variety of addictive products.
This trades at 13 times earnings, and has raised prices even as taxes raise.
Smoking in emerging markets is a natural, and PM even buys their emerging market competitors up.
And of course it bribes us to keep the stock (this is called a dividend) with a 4.6% current yield.
It’s time for SIN.
Buy PM at market, and continue to buy on any dips. Set a 25% trailing stop loss. Buy this in our speculative portfolio.
We do not recommend options on this stock.
