Tuesday, March 15, 2016

Jim Cramer on Tobacco Stocks

Jim Cramer the host of CNBC's Mad Money had a segment on tobacco stocks yesterday evening.

Interesting since I bought shares of VGR yesterday on the pullback which seemed to happen for no reason. I still think the dividend is ok despite the fact the company has a high payout ratio.  The company has borrowing facilities to help cover in a cash crunch, and the continued growth in its real estate should help the next 1-3 years. The tobacco operations are very stable and will be a pillar of funding the dividend.

I have been watching PM myself and would like to add it around $90 again. Cramer stated it would likely pull back to $93 so maybe I need to reset my expectations, but you never know.

Altria has been a solid winner for us. The stock just keeps chugging along time and time again. I'm looking for any move below $60 to add again.

I agree with the consensus on RAI. I want to add to the stock too but I just can't trust the chart myself either. I've been waiting for it to get below $50 again.


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