Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cigarette manufacturer Vector Group
With that in mind, let's take a closer look at Vector's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Miami (1873)|
|Market Cap||$1.4 billion|
|Trailing-12-Month Revenue||$580.7 million|
|Management||CEO Howard Lorber
CFO J. Bryant Kirkland III
|Return on Capital (Average, Past 3 Years)||21.5%|
|Cash/Debt||$276.9 million / $540.3 million|
Philip Morris USA
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 10% of the 77 All-Star members who have rated Vector believe the stock will underperform the S&P 500 going forward.
1. Dividend looks unsustainable. 2. They're not "sticking to their knitting" -- see hedge fund and real estate investments. 3. Don't like the cigarette business long-term (Altria notwithstanding). 4. If you're going to be in cigarettes, be in a good brand, and be in China. 5. Huge debt balloon due in 2015, and the rates on it are ridiculous (11%!) 6. Declining revenue, with no concomitant reduction in administrative expense.
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.