How can Altria stock go up 71000% since 1981 when U.S cigarette consumption dropped 44%?
- Thread starter helpme_please
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Can somebody explain me where the 71,000% comes from?
- price 1/1/1981 was $2.13
- price at 5/1/2017 (when the article was written) was $70.92. So 70.92/2.13 equals not at all 71,000% as the result is 33.295...
- price today is $54.18. So 54.18/2.13 equals not at all 71,000% too as the result is 25.436...
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I think that would be a radical departure in business strategy for them that doesn't make any sense. And not the marijuana part, the buying land part. Altria is primarily a marketing and distribution company, not a tobacco growing company. I'm pretty sure they don't grow any crop of any kind, and as a result don't have any competencies in that area. In addition, it's hugely capital intensive with all kinds of risks they don't currently face. Why throw away a business model that's worked so well to do something that again, any business school first year student would tell you is an amateur move from a strategy perspective?
No doubt they'll get into marijuana, but I'd be surprised if Altria owned farms are growing it.
It might be hard to imagine that there is a whole world outisde the United States...with people...and they have money...and they smoke cigarettes...
Also doesn't MO own a winery? Also a % holder of SABMiller... Didnt they make a fortune when they sold off Kraft Foods?
Little research goes a long way....
Also doesn't MO own a winery? Also a % holder of SABMiller... Didnt they make a fortune when they sold off Kraft Foods?
Little research goes a long way....
I agree 100%, why get into cultivation when you can have contractors do that work. As I said that was just the rumor floating around the Emerald Triangle.
Although....
I don't think Monsanto cultivates a lot of food for market but they control a lot of land for research and seed production.
North Carolina is not Northern California.
I would think it would be in Altria's interest to get in on strain research, seed development, curing/drying/trimming, mechanization techniques for outdoor cultivation that can be past on to their contractors and introduced at Universities in order to have a consistent product when the time comes. (basically achieved with the Cronos investment)
Maybe they see it as an extension of their current boutique winery business model and not in opposition to their profits, a 'higher' end premium product line so to speak. Cannabis tours have already begun in CA so maybe they see something to be had in the connoisseur market - Nat Sherman.
Not sure what the North American cannabis industry's yearly revenue is but it has to be affecting Altria's bottom line enough for them to make some changes in their current business model and invest in a business that is still illegal on the Federal level in the US.
And then, maybe I've just smoked too much weed in my life and see things differently.
Although....
I don't think Monsanto cultivates a lot of food for market but they control a lot of land for research and seed production.
North Carolina is not Northern California.
I would think it would be in Altria's interest to get in on strain research, seed development, curing/drying/trimming, mechanization techniques for outdoor cultivation that can be past on to their contractors and introduced at Universities in order to have a consistent product when the time comes. (basically achieved with the Cronos investment)
Maybe they see it as an extension of their current boutique winery business model and not in opposition to their profits, a 'higher' end premium product line so to speak. Cannabis tours have already begun in CA so maybe they see something to be had in the connoisseur market - Nat Sherman.
Not sure what the North American cannabis industry's yearly revenue is but it has to be affecting Altria's bottom line enough for them to make some changes in their current business model and invest in a business that is still illegal on the Federal level in the US.
And then, maybe I've just smoked too much weed in my life and see things differently.
The R&D part totally makes sense, good point.I agree 100%, why get into cultivation when you can have contractors do that work. As I said that was just the rumor floating around the Emerald Triangle.
Although....
I don't think Monsanto cultivates a lot of food for market but they control a lot of land for research and seed production.
North Carolina is not Northern California.
I would think it would be in Altria's interest to get in on strain research, seed development, curing/drying/trimming, mechanization techniques for outdoor cultivation that can be past on to their contractors and introduced at Universities in order to have a consistent product when the time comes. (basically achieved with the Cronos investment)
Maybe they see it as an extension of their current boutique winery business model and not in opposition to their profits, a 'higher' end premium product line so to speak. Cannabis tours have already begun in CA so maybe they see something to be had in the connoisseur market - Nat Sherman.
Not sure what the North American cannabis industry's yearly revenue is but it has to be affecting Altria's bottom line enough for them to make some changes in their current business model and invest in a business that is still illegal on the Federal level in the US.
And then, maybe I've just smoked too much weed in my life and see things differently.
Phillip Morris is mentioned in the book "Good To Great" as one of the great companies. They did very well from the 80's through the 2000's. They had all the right ingredients to succeed and show that you can make a lot of money in a declining market (if you are great).
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Did you figure 6% dividend?? Frankly your math looks better than his headline.I use 52 weeks than 52 years , or years counting from '81; i use fundamentals as a helpful screen. But i never pretend i was or am as good as Carl Ichan on fundamentals.
Therefore if it was up 77,777%; but with a 52 week chart like that , i would not buy it.Strange it had a good up run from sell in may day.• 2 for 1 split in 04/86, 4 for 1 split in 10/89, 3 for 1 split in 04/97
• 04/07: spin-off of Mondelez, roughly 25% of the company value
• 03/08: spin off of Philip Morris International, roughly 70% of the company value
Price for 12/31/80 was 43.25, adjusted for splits and spin-offs is roughly 0.41.
Price change is therefore ~ 12,700%
Add a steadily growing dividend (well, not in 2008) that was yielding, till ten years ago, well north of 10% and you get a total return of - as per today's close - more than 73,000%
• 04/07: spin-off of Mondelez, roughly 25% of the company value
• 03/08: spin off of Philip Morris International, roughly 70% of the company value
Price for 12/31/80 was 43.25, adjusted for splits and spin-offs is roughly 0.41.
Price change is therefore ~ 12,700%
Add a steadily growing dividend (well, not in 2008) that was yielding, till ten years ago, well north of 10% and you get a total return of - as per today's close - more than 73,000%
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