Philip Morris MO
April 19, 2000 - 12:46pm EST by
2000 2001
Price: 20.75 EPS 0
Shares Out. (in M): 2,310 P/E
Market Cap (in $M): 0 P/FCF
Net Debt (in $M): 11 EBIT 0 0
TEV (in $M): 0 TEV/EBIT

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Worldwide, Old economy stocks in general and tobacco stocks are depressed.
The biggest, best managed tobacco player tobacco player is Philip Morris
Companies, Inc. (MO). Because of bancrupcy fears because of a Engle trial in Florida the stock is damn cheap now (PE=6; Div.Yld=9%).

Basically MO has three huge cash generators generation in total
15 billion USD per year in operating cash flow:

1) Domestic (USA) tobacco - 5 billion
2) International tobacco - 5 billion
3) Food (Kraft) and beer (miller) - 5 billion

The domestic operating company (Philip Morris) is being sued. If it
looses everything because of the trial, there are still 10 billion
dollars operating cashflow left.

The non-tobacco assets (Kraft and miller) are worth about $40-$60
per share when compared to food- and beer- only stocks.

Furtermore insiders are buying like mad (especially Mexican
tobacco baron and MO director Slim Carlos $90 million) - insider buying
started ad $25.

Furthermore, is MO buying back shares worth $3 billion per year -
this has an enourmous effect at these depressed prices.


Court decision in trial or supreme court decision or new legislation (as is being introduced in Florida right now).
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