The company was founded in 1919 and is based in Richmond, Virginia. Altria Group, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in the United States and internationally. The company, through Philip Morris USA, offers cigarettes. Altria Group, through John Middleton, manufactures machine-made large cigars. It sells its tobacco products to wholesalers, large retail organizations that include chain stores, and the armed services, as well as distributors, retailers, and state-owned enterprises.
Today the stock is trading for 15.16 dollars. If we have got that r is 7% than our stock price will be 15.36 which is greater then the price it is trading today on the other side, we have got that r is 10% and the stock price would be 14.95 which is lower so we would definetly sell our stock for 15.36.
1 year ago the stock was about 80 dollars and it fall down to 20 probably because of economic crisis. Because there is a lot of smokers who buy they cigarettes every day for example Austria where 36% of people smokes i would buy this stock and be patient. When crisis stop then the stock price would go up deinftly, however one negative thing is that in a lot of europen countries and in the world it is forbidden to smoke on public places, and because of this economic crisis people are scared of loosing their jobs and they are looking to save money wherever they can. Almost all countries are trying through adds and marketing to lower the percentage of smokers, but if someone is smoking for 40 years he is going to smoke his all life. There will always be smokers thats how it is for the last 100 years.
1 year ago