Philip Morris International (NYSE:PM)

CAPS Rating: 4 out of 5

The company manufactures and sells cigarettes and other tobacco products in markets outside of the United States.


Player Avatar HatchingPlans (31.50) Submitted: 4/28/2008 4:41:35 PM : Underperform Start Price: $38.83 PM Score: -60.17

Agriculture is shifting towards corn for ethanol, not only raising food prices but putting a pinch in other kinds of growers. I think tobacco will be hit with fewer growers and lower supplies, causing higher expenses for PM as well as higher prices for consumers. Plus, I don't like the moral ground these guys are on. In the long run, this always seems to boomerang back around and smack a company upside the head.

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Member Avatar HatchingPlans (31.50) Submitted: 6/5/2008 6:12:04 PM
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Oh yeah... Don't forget smoking bans happening in cities all over the US... Smoking is fading out of style... A lot of really hot girls strictly don't date smokers under any circumstance anymore, for a lot of different reasons... So basically, I know a lot of people who are busting their tails to quit. I'm one of them. I think cigarette companies are going to be fighting an uphill battle.

Member Avatar boredgenius (73.34) Submitted: 6/7/2008 7:25:34 PM
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not sure if you know this, but PM sells outside USA.

Member Avatar HatchingPlans (31.50) Submitted: 6/8/2008 12:41:33 PM
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yeah, i'm aware of that... but is that enough of a reason to invest in them? at least if they were a fine product like cuban cigars or mexican beer we'd have something the world needs... but phillip morris cigarettes are crap...

Member Avatar Ross86 (< 20) Submitted: 6/28/2008 12:05:47 PM
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There's many ways to make a company's stock go up than just increasing top line revenue.

Member Avatar mpingel00 (42.21) Submitted: 6/30/2008 1:21:19 PM
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Well, if the moral grounds your talking are just selling tobacco, it sure hasn't hurt Altria in the long run. Tobacco = gross. Tobacco stocks = $$$. If you're concerned about smoking trends, look at the smokeless tobacco companies like UST. But smoking trends internationally are far different than here in the United States.

Member Avatar FleaBagger (28.14) Submitted: 1/20/2009 9:49:52 PM
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I like how Hatching's arguments are incoherent, but his rating is 99.85. (Chain-yanking, anyone?)

Member Avatar ikkyu2 (99.14) Submitted: 1/26/2009 12:17:07 PM
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Plus, I don't like the moral ground these guys are on. In the long run, this always seems to boomerang back around and smack a company upside the head.Yeah, no kidding. Just consider MO, PM's parent company. Best performing stock of all time, ever, in the entire world, by a margin of thousands of percent...wait, what?

Member Avatar hondo928 (99.46) Submitted: 4/23/2009 3:10:52 PM
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Shorting PM is stupid. First off morals are for church and heaven. And it's easier for a camel to fit through the eye of a needle than a rich man to go to heaven. So buy the damn Camel....Ok no because they are owned but RJ Reynolds but as many of you point out smoking is gross. I think I've had 3 cigarettes in my life and one pinch. But Camels Snus and PM's Taboka are alternatives that I suspect will have a huge impact and are an excellent way of competing against dip and smoke. While they may cannabalize some profits I suspect they will allow smokers to get their buzz all the time. I say buy PM and don't worry about cancer from smoke. Here's my blog on PM and a more moral Pepsi

Member Avatar BimSkaLaBim (< 20) Submitted: 4/29/2009 3:27:28 PM
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Agriculture is not shifting everywhere - and you neglect to point out (or, didn't know) that ethanol is still very expensive to produce as an alternative fuel source. Fewer growers and higher prices? Maybe in the US, but what about abroad? And this is PMI - Philip Morris International...think that tobacco can come from elsewhere? Yes it can...which means continued dividends and profits.Look at where a carton of cigs was in `98...a year when MO fell to where the yield was 10%! They've gone up and up and I don't see consumers stopping their demand. Simple as that...there's some price out there that's too much for a pack, but that hasn't been hit (and I kick myself for not holding on to MO shares 10 years back, because that bucket of cash would be awfully nice right now).The Morality Argument is just...well...Wrong, wrong, wrong - if not, then please explain why this co. has been so profitable. To smoke or not has nothing to do with morality - there's enough information out there to know that it's not good for you, and what you choose to do with it is your choice. can build a good argument that this company didn't operate on a moral high ground before we became more aware of the risks that may be present, but let's have a discussion of how many other companies don't necessarily operate on a "moral high ground" that aren't in tobacco that we're perfectly happy to invest with...

Member Avatar socialtool (74.12) Submitted: 4/30/2009 1:23:47 PM
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I'm pretty sure you meant Belgian, Irish, Scottish, or German beer....

Member Avatar socialtool (74.12) Submitted: 4/30/2009 1:24:26 PM
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Hmm... that didn't cascade like I thought it would..... Never mind...

Member Avatar AccountantMike (94.48) Submitted: 5/5/2010 12:34:20 AM
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Mexican beer?

Member Avatar CraigMiles (< 20) Submitted: 3/2/2011 2:24:25 PM
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At ~$63 I don't believe PM offers any significant value for new shareholders to buy in. And the dividend isn't going to protect against any future downside like more Middle Eastern turmoil or hyperinflation.
(Price is what you pay, value is what you get. -Warren Buffet-)

Member Avatar DooDeeHead (< 20) Submitted: 9/28/2011 12:39:29 AM
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You forget that there are a lot of hot girls who do smoke, and a lot who don't care that much if a guy smokes. You forget that all sorts of people have considered smoking as a disgusting for decades. Nothing new here - PM is a great buy with a great dividend. I'm a former smoker and I know that this is one product where the majority of users will keep purchasing repeatedly for years to come. If nicotine isn't enough to hook a consumer for years on end, then nothing will, including the craze of Iphones, Ipads, etc.

Member Avatar satinstitch (< 20) Submitted: 4/10/2013 9:29:42 AM
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PM sells outside the USA, Europe has a lot of smokers, and just from observation it seems that smoking is on the rise again. In times of strife people fall back on their vices for comfort.

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