Rothmans Inc (ROC.TO) Buy, Sell or Hold

Rothmans Inc (ROC.TO)

0.00

-0.00 (0.00%)

1 watching

BUY

Someone is always suing them for one reason or another and this will always be a risk. It will take 5/10 years before they have to settle anything so use as a short-term holding only. High yield.

BUY

His model price is $27.62 which is a 23% positive differential.

HOLD

Has suffered similarily to a lot of companies that don't have great growth profiles. There's always litigation risks. However, valuations are good.

BUY

In terms of strict quantitative fundamentals has good profit growth, high level of profitability, a good yielding stock.

BUY

There is no better legitimate business in the world than tobacco. The most profitable and your customers are addicted. This company has a policy of basically paying out all of its earnings. The legal hurdles in Canada have moved up a little which has hurt the stock but is an opportunity to buy.

WEAK BUY

As a yield play, this is a great name. There is no more profitable (legitimate) business than tobacco. Pays out all of its earnings in dividends. 5.25% yield. In the near term you have some litigation risks.

WAIT

Stocks fell on Supreme Court ruling that would allow provinces to sue. This gives a tremendous buying opportunity, but not yet and may have to wait for some little while. Governments do not want to see the cigarette industry dead as it is a phenominal cash cow. There'll be a lot of noise, but expects there will be no change in overall earnings.

DON'T BUY

Today's tobacco companies are like yesteray's asbestos companies. More and more they are going to come under attack for making up some of the health costs that are associated with. Wouldn't own this one as he doesn't believe you should go looking for trouble. It's becoming not only a litigation matter, but also a political matter.

BUY

Pays a nice dividend and grows its earnings. LOts of free cash flow. A good long term hold.

BUY

The only tobacco company that he knows that did not diversify. Any excess cash is paid out to the shareholders. Besides their regular dividend, every couple of years they pay out a special high dividend. Tobacco litigation in Canada in miniscule compared to the US.

BUY

Had a run up when everybody was looking for defensive cash generating names. Don't expect to see another move like that. A good stable cash generating stock.

BUY

Has been doing very well lately because it has managed to get a niche in the tobacco business. At the major brand level it was butting its head against Imperial Tobacco (ITY-N). Have been a big player in the off-brand (lower priced) cigarettes and have gained big market share.

BUY

Prefers the US company Altria (MO-N). Great cash flow and likes to pay out special dividends now and then. It's not a growth business. You buy for the dividend. Reasonable for an income investor.

DON'T BUY

Model price is $23.26. Stock price is about 6% below the model price.

DON'T BUY

Not a fan of tobacco stocks and wouldn't own them under any circumstances. Has some legal problems.

Showing 31 to 45 of 117 entries

Most Recent Experts

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

Joe Terranova

Virtus Investment Partners

Stephen Weiss, Founder, Short Hills Capital Partners

Short Hills Capital Partners

Bryn Talkington

Requisite Capital Management

Shannon Saccocia, CIO, Boston Private

Boston Private

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Rothmans Inc (ROC.TO)