Stockchase Opinions

Bruce Campbell (1) Rothmans Inc ROC-T DON'T BUY Dec 21, 2006

Had a lot of excess cash, paid out a special dividend and it is now taking awhile to build out. Basically a snooze fest until they announce something giving a bit of a yield. No growth.
$21.250

Stock price when the opinion was issued

tobacco
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The tobacco sector is acting particularly well. Very stable cash flows. There are always litigation risks. Should continue well even in a slowing economy.
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Excellent yield. Good defensive play. No growth.
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This is one that nobody is talking about. A great-looking chart and it's trying to break out.
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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.
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He made a moral decision not to buy cigarette stocks.
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Has been making a base. If it manages to get past 23, that would be very good.
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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.
BUY
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.
BUY
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.
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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.