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marlboro cigarettes dull sale in New York
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Q The outlook for my shares of Altria Group Inc. always concerns me. What is the latest outlook?
A Much depends on the continued popularity of its famous Marlboro cigarettes brand, which accounts for more than two-thirds of the company's operating income. Younger smokers in recent years have been attracted by some of the brands offered by competitors.
It is no secret that the U.S. cigarette industry is in a long-term decline due to health-risk issues. More graphic health warnings on cigarette packs mandated by the U.S. Food and Drug Administration will take effect in October 2012.
Potential litigation and increased taxation are other concerns that could cut into profits.
Despite these ongoing worries, however,cheap newport cigarettes, this remains a powerful company that retains its investment appeal based on its commanding industry position, cash flow,wholesale newport cigarettes, dividends and the unlikelihood that any new tobacco companies will emerge.
Altria shares recently were up about 30 percent this year. Third-quarter earnings were up 28 percent due to higher cigarette prices and increased smokeless tobacco sales.
Altria includes Philip Morris USA; U.S. Smokeless Tobacco Co., which makes the Skoal and Copenhagen brands; and John Middleton Co.,marlboro cigarettes, which makes cigars and pipe tobacco. It also owns 27 percent of SAB Miller, the world's second-largest brewer.
It holds the leading U.S. position in cigarettes and smokeless tobacco and is No. 2 in cigars. It holds about 50 percent of the overall U.S. tobacco market.
The consensus analyst rating of Altria shares is a strong "hold," according to Thomson Reuters. That consists of two "strong buys," two "buys" and eight "holds."
Leader of the company since 2008 has been Chairman and Chief Executive Michael Szymanczyk, who had been CEO of Philip Morris USA.
Earnings are expected to be up 9 percent this year compared with the 14 percent increase expected for the tobacco industry, according to Thomson Reuters. Next year's forecast is for 6 percent growth versus 18 percent for its peers. The five-year annualized return is projected as 6 percent compared with 11 percent expected industrywide.
Q Why did the bottom fall out of Janus Forty fund shares?
A Its portfolio of around 40 quality big-capitalization stocks has encountered problems in recent years,newport cigarettes website, with poor 2008 results overshadowing a 2009 rebound.
Being so concentrated means a few individual stocks can have major positive or negative impact,newport cigarettes website, something investors should keep in mind.
The $6.4 billion Janus Forty S (JARTX) recently was up 8 percent over the last 12 months to rank in the bottom 2 percent of large growth funds. Its three-year annualized decline of 4 percent placed it in the lowest one-fourth of its peers. The five-year annualized return of 5 percent placed it in the top 14 percent of its category.
"I still recommend Janus Forty as a core holding and see reason for shareholders to stick with it," said Kathryn Young, mutual fund analyst with Morningstar Inc. "The three years that portfolio manager Ron Sachs has been on the fund have not been good relative to its peers,Golden Virginia Tobacco, but a lot has to do with the fact that it holds a greater number of giant-cap stocks, and those have struggled."
Sachs emphasizes reasonably priced stocks of companies that have the ability to make money, generate free cash flow and raise prices. He also focuses more on financial stocks than do most of his peers,newport cigarettes, believing consolidation in that industry allowed companies to improve their market shares. While Sachs has no personal investment in Janus Forty, he has more than $1 million invested in the Janus Twenty Fund, which he also manages.
Financial services and hardware each represent about one-fifth of Janus Forty, with other concentrations in telecommunications and consumer goods.
This "no-load" (no sales charge) fund requires a $2,500 minimum initial investment and has an annual expense ratio of 1.2 percent.
(Extracted from http://www.olymall.com)
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