Buy Opportunity: Philip Morris International

Motley Fool analyst Anand Chokkavelu highlights a possible buying opportunity in tobacco giant Philip Morris International (NYSE: PM  ) .

U.S. investors normally only have two choices when picking up international exposure in individual stocks: ADRs (foreign companies listed on U.S. exchanges) or U.S.-based companies that do a bunch of business in foreign countries, like Coca-Cola. Coca-Cola does well over half its business outside the United States.

If you don't mind investing in tobacco, Marlboro-maker Philip Morris International offers us a rare third option. Thanks to the 2008 break-up of Altria (NYSE: MO  ) (U.S. operations) and Philip Morris International (everywhere else), we have a U.S.-based company that does all its business internationally. You get the oversight and corporate governance of a U.S. company and the diversifying growth opportunity of a foreign stock.

And it's starting to look darn tempting at today's prices.

He explains further in this video:

More from Fool TV:

Anand Chokkavelu owns shares of Altria and Philip Morris International, which is a Global Gains selection. Coca-Cola is an Income Investor and and Inside Value selection. You can follow Anand on Twitter. The Motley Fool has a disclosure policy.


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  • Report this Comment On June 02, 2010, at 5:09 PM, jigar34 wrote:

    Another good option is BTI (British American Tobacco). Yield is just as high as PM's and international penetration as well.

  • Report this Comment On June 03, 2010, at 2:09 AM, tomd728 wrote:

    Any threat to dividend with cash issue to cover

    taxes etc ?

    Thanks,

    Tom

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Related Tickers

7/22/2014 4:01 PM
PM $85.38 Down -0.19 -0.22%
Philip Morris Inte… CAPS Rating: ****
MO $41.93 Down -0.08 -0.19%
Altria Group, Inc. CAPS Rating: ****

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