Stock Smackdown: Cramer vs. CAPS

• Report this Comment On June 09, 2009, at 11:33 AM, pondee619 wrote:

  "a 10% hike in taxes resulted in a 4% decline in the number of smokers"

  BUT, what is the effect upon Altria? That 10% hike was not to their revenue but to the governments. Unless they can raise THEIR price that 4% cut in smokers will cost them money. Even if they can pass the whole tax increase to the users, Altria still losses the 4%. Are enough kids and/or non-americans taking up the habit/addiction to off set the loss due to increased taxes and restraint or use?

• Report this Comment On June 09, 2009, at 8:45 PM, truthisntstupid wrote:

  OK. People keep looking at ATRIA through rose-colored glasses. Keep it up. It WILL cost you money, unless the government backs off. And I actually hope the government does back off. I would love to have that dividend myself. But if Uncle Sam doen't back off....

  My girlfriend and I EACH smoked for about 35 years apiece. I'll give you one guess why we finally quit in Jan. Same reason many of the others will. So...let's get this straight... the biggest demographic that smokes is poor people? And poor people, they can somehow pay $7, $8, $9 a pack? Hey, you all! Be one of the few people that get it!

  This is no longer an investment...it has become a gamble and not even a good one as long as this continues.

  Need another company that pays dividends on the same dates to replace MO? GlaxoSmithKline...and guess what...GSK is the maker of COMMIT lozenges...pays a pretty good dividend and is an INCOME INVESTOR recommendation. I don't own GSK but I sure have thought about it...my girlfriend still isn't sure she can do without tose COMMIT lozenges, oh well they're cheaper than cigarettes and she's slowed down on them some since Jan....

• Report this Comment On June 09, 2009, at 8:56 PM, ActionAlertsPlus wrote:

  I have tracked AAP for the past year. So Cramer is just one more CAPs player. His record is right here.

• Report this Comment On June 09, 2009, at 9:06 PM, NOTvuffett wrote:

  hey truth, I know you are investing for dividends. I haven't really researched it but have you looked at VOD (Vodafone)?

• Report this Comment On June 10, 2009, at 9:28 AM, VirginiaView wrote:

  Although the tax increase was onnerous, and put a huge tax increase on the part of the population which can least afford it - and ironically, are the same people who probabaly put Obama in office, Altria has been able to pass on the tax - and then some, and people are going to continue to pay it. Think about, in NYC cigarettes were $9.25 a pack BEFORE the tax increase, now they are $10.00 a pack - seriously, this is not a significant enough increase to get people to stop. Now, in Virginia, where I am, yes the increase as a percentage was greatrer going from $2.75 ish to $3.40 ish, but again, for people addicted to this product, they will pay it... Now, all of this being said, I unfortunatly say forget about Altria and go with PM, as you avoid the US government and outrageously litigious society in the US - as a kicker, you get actually cigarette growth, no litigation, and less taxation - its a real shame when the rest of the world has LESS intrusion into its citizens lives, than does the US....

• Report this Comment On June 10, 2009, at 4:44 PM, truthisntstupid wrote:

  NOTVuffet

  I just glanced at it. VOD pays an 8.5% semi-annual dividend every Aug and Feb, was recently downgraded from hold to sell by S&P, and doesn't currently offer a DSPP, which is the only way I invest. Direct stock purchase plans offer low or no fees and I live a good drive from the nearest broker. According to DIVIDENDINVESTOR.COM they had a net loss of something like $30B although their cash flow was about $20B. Payout ratio was quoted @ 166%. Debt/equity 49%. These are just figures from DIVIDENDINVESTOR.COM. I won't spend any more time on it since the dividend is semi-annual, there's no DSPP, and it's dividend is kind of irregular.

• Report this Comment On June 10, 2009, at 5:55 PM, truthisntstupid wrote:

  A few figures from the free content of SCOTTRADE:

  MO

  Sales growth, last 5 years .....- (that's MINUS) 25%

  Debt/equity.............................4.92 (say what? Isnt that a little higher than some of you might remember since you last checked?

  EPS growth, last 5 years..........a little over 2 (two) %

  You are very smart to choose PM instead.

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