Under legal attack, starting off with British Columbia but kind of spreading out across the country. Likes to wait until the lawsuits are well on their way and almost through and then buy.
The tobacco sector is acting particularly well. Very stable cash flows. There are always litigation risks. Should continue well even in a slowing economy.
Looked at it a couple of years ago, but what was bothering him where the private-label brands eating into their main brand, so margins have been compressed. A massive free cash flow business. Fantastic dividend.
If they got pounded down really hard, and got under $20 it might be a trade. For the longer haul the demographics are against it. Huge cash flows and have been buying back their stocks.
A great dividend story. Buying back shares. Fantastic cash flow growth. If you're nervous about the market, this is a great company to own. Their private label brands were hurting their premium brands and margins were suffering. They turned that around and cut their costs and increased dividends.
Tobacco is a vile product, is the best business in the world to be in. No business earns returns that tobacco does. Basically a cash machine. 5% yield. Every few years issues a special dividend. This is one you can Buy and Hold.
The best thing with this is that you get the chance of special dividends. It's a cash flow machine and you get a nice fat yield now with a chance of a special dividend every 2 or 3 years.
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