Philip Morris Causes Interest

Source from:  Tobacco World 07/03/2012

It is no exaggeration to describe the "cash, Smokin 'Philip Morris, but that plan is even hotter cigarette manufacturer to buy back $ 18 billion in shares. Although this is a huge figure that is more than 10% of the market capitalization of the company, Philip Morris International (ticker: PM) has returned to shareholders about $ 40 billion in total in the form of dividends and share buybacks since March 2008 when it separated its U.S. business Spinout from the Altria Group (MO). The new purchase will be implemented over three years starting from August 1; Philip Morris just completed a three-year $ 12 billion buyout. Shares of Philip Morris rose $ 1.70, or 2%, to $ 86.73 in the otherwise flat day of the Dow. Today, a bullish scenario for the stock required withdrawing the sale of cigarettes in emerging markets, and this may result in share price around $ 105, according to the best, Morgan Stanley, of the three scenarios for Philip Morris. Target price analyst, David Adelman, however, is $ 90, based on the average, the road share the analysis. Although it is only up by 4%, 3.7% of the rich dividend yield and the possibility that it could be done to grow attractive investment for conservative investors down persistently low interest rates. Analysts expect Philip Morris to create a long-term revenue growth of 10% and earnings per share of $ 5.25 in 2012 and $ 5.81 in 2013. Shares traded at 16.5 times earnings this year, and about 15 times score for next year. This is a significant premium to the 12.4 multiple of 500 Index Standard & Poor's, but he can win because of the brand, cash on the balance sheet and an attractive yield. Adelman warned that the increase in excise duties and competition risks for the stock. But Philip Morris is also likely to expect to increase market share and prices in Japan, and the opportunities in China; Edelman is overweight rating on the stock. The Director-General Louis Camilleri said redemption announcement indicates "a firm commitment to generously reward our shareholders over the long term." Camilleri sold shares of Philip Morris in the average price of $ 85.63 in May, shortly after the stock reached a record of about $ 91. But Philip Morris said Barrons.com at a time until Camilleri sold 70,000 shares, he still had a beneficial ownership interest in the amount of 1.6 million shares. (See inside Scoop, "$ 6 million sales of Philip Morris CEO," May 14.) These shares have been good to him and the shareholders. Philip Morris issued shares of the total income of 100% since March 31, 2008 until the end of May, with 33 points, that the return of the basis of profitability. At the same time, Altria has caused total revenue 88% including 43 percentage points from dividends. At the same time, S & P 500 eked out an 8.7% total return due solely to the payment. Shares nearly doubled, as we suggested in June 2010 that investors should not get out of stocks. (See Weekday traders, "Get up Fired over Philip Morris," June 3, 2010.) Philip Morris may raise payments in the third quarter, according to the hand of dividend forecasting Markit, the financial information services company. In the end, redemption grow: they amounted to somewhere between $ 5 billion and $ 5.5 billion per year in recent years and the average new purchase $ 6 billion a year. At the same time, the payout ratio Phillip Morris "- 60% - and prospective profitability of 3.9% is lower than that of its peers. Altria, Reynolds American (RAI) and Lorillard (LO) boast an average payout ratio of 76% (the lowest at 71% of Lorillard) is estimated for 2012 at Markit. Altria Said output is 6.6%, while in the Lorillard is 5.3%, while Reynolds American is 5.9%, according to Markit assessment. Markit said that he expects Reynolds can raise payments in the fourth quarter. He sees that Philip Morris in the third quarter. There should be more color on cash flows, dividends and repurchase of the company's investor meeting next week and earnings report in July. Enditem