2016 Newport 100s cigarettes hot sale is good, high quality of Newport or Marlboro cigarettes wholesale, cheap Newport & Marlboro cigarettes online sale
A Review Of Philip Morris' Prospects The article below will build on my recent post on Philip Morris (NYSE:PM) which can be seen here. PM continues to be hobbled by forex issues that are largely out of their hands. With the upcoming dividend announcement expected shortly, I felt a review is warranted. It is all about Foreign Exchange PM by virtue of its operations across the globe generates its revenue in local currencies which it converts back into dollars when reporting its quarterly results. Naturally, the action introduces some volatility into the mix. PM is suffering from weak comparisons due to forex concerns which this year is expected to impact earnings to the tune of roughly $1.15 per share. To say the least, the stronger dollar over the course of 2015 is an unwelcomed event for PM shareholders. If we examine below the actual numbers and include the forex hit, a far different picture emerges. Earnings growth remains a relatively robust 9 11% range. As we can see from the chart below, the shares were being hit hard earlier this year before the second quarter results were posted only to spring higher off the back of a superb numbers including volume growth. The key naturally is how will the third quarter numbers shape up? The following quote attributed to Chief Financial Officer Jacek Olczak offers some reassuring insight: In conclusion, our third quarter is off to a positive start, and this all goes well for the balance of the year. Robust fundamentals have driven favorable cigarette volume and share performance. We are performing well very well across all of our key geographies and are generally seeing cigarette industry volume trends in line with or slightly better than our expectations. iQOS is performing at or above our expectations and we are very encouraged by the results of our clinical studies thus far. PM data by YCharts iQOS Product PM is actively testing its Reduced Risk Products product iQOS in various markets across the globe. The goal here is to offer a different avenue in which smokers can continue their habit. The iQOS system as shown here. Works on the razor/razor blade model where a consumer would purchase the device once (razor) while continuously buying the cartridges (dubbed Marlboro Heatsticks) for use in the device. Based on the results generated over the past two quarters coupled with the encouraging words concerning the third quarter I have increased the EBITDA multiple to 12. The multiple is in line with recent history and its sibling Altria (NYSE:MO). My fear of a market down due to currency woes did not materialize as expected. My fair value for the equity stands at $81.78, not far from the security's current quote. The Dividend With the tobacco names, the main appeal is the dividend. Many depend on the dividend that in my view is quite safe. If I were to choose an entity to invest in solely for income, PM would top the list. PM currently pays a dividend of $1 per share for a yield greater than 5%. PM is loath to take on additional debt to issue a larger dividend that limits the amount it can comfortably pay out. This is the central area where income seekers are impacted by the forex hit this year. My take is management will send a strong signal of their commitment to the dividend by raising it 5 cents per quarter. PM payout ratio will be quite high yet when the currency issue resolves itself, management will gain additional room. A word on PM metrics I have seen numerous comments concerning PM's debt load. I would like to take a moment to address this issue further. PM carries debt on the balance sheet of approximately $26 billion. Using last year's EBITDA number of $13 billion, PM is levered 2x EBITDA. Leverage based on EBITDA is well within reason, keep in mind the tobacco industry is not capital intensive so the excess cash generated can be used to reward shareholders. Capex has risen over the past few years as PM aggressively spent to test the new iQOS system. We are nearing the end of the bulk of the capital spend as the management team begins to roll the product out worldwide. Conclusion PM continues to offer one of the better yields currently available in the market. I am quite pleased with the market share gains and earnings performance over the past two quarters. The upcoming dividend announcement will be quite telling, a decent boost will improve sentiment in regards to the security. I would like to thank you for reading and look forward to your comments.