I’m almost always negative on cigarette companies, and I promise, it isn’t because I think that my opinion harms them in any way or prevents anyone from smoking. I’m negative on them because the world, or the US, in the caser of Altria, is finding that almost any action it takes to suppress smoking save the government an incredible amount of money over the long run, and as the government takes charge over the healthcare of those who cannot otherwise afford it, this will become more and more crucial. Altria is likely to benefit from corporate tax cuts and from share repurchases, both of which will contribute to a less than well-earned rise in EPS over the coming year. Some of said the rise of EPS will be as great as 20%, but don’t be surprised if you find out the EPS bump has already been priced in, while the total failure of the cigarette industry in the not too distant future has not been. By the way, Altria is also loaded with debt. Current ratio: 0.65.
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