Bought Some Altria (MO)
I have been looking to put some cash to work and Monday provided a decent buying opportunity in Altria (MO). I still believe shares are worth $92 if the company spins off Kraft. The speculated deal would be that for each share of Altria you would get 0.70 share of Kraft. The price of Altria would drop, but a 5% dividend yield would keep the stock around the $68 level.
Math
Kraft: 0.7 * Kraft Price Per Share ($34.51 Per Share= 17*2007E) = $24
PMUSA & PMI: = $68 (Maintain a 5% yield $3.44 Dividend)
Altria Dividend might have to be lowered since it will no longer receive a dividend from Kraft.
My conservative value: $24+$68=$92
Note: I am long Altria (MO)
Math
Kraft: 0.7 * Kraft Price Per Share ($34.51 Per Share= 17*2007E) = $24
PMUSA & PMI: = $68 (Maintain a 5% yield $3.44 Dividend)
Altria Dividend might have to be lowered since it will no longer receive a dividend from Kraft.
My conservative value: $24+$68=$92
Note: I am long Altria (MO)
0 Comments:
Post a Comment
<< Home