Altria Group (MO - Analyst Report) is the leading domestic tobacco company, which generates significant cash flow and the stock has a high dividend yield. In an effort to expand into adjacent categories, Altria acquired UST, the world's leading moist smokeless tobacco manufacturer.
However, the company is engaged in numerous tobacco liability suits. Several large punitive damage awards have been upheld, most recently the $79.5 million judgment in the Williams case in 2009.
In addition, the 150+% federal excise tax increase should dramatically reduce cigarette volume. A Sell rating is recommended.
Altria Group (MO) : FULL ANALYST REPORT
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| Market Summary | Feb 10, 2010 04:21 am ET |

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