InvestIdeas

Been eyeing this company for a long time. Finally vested by selling a put on its shares.

I believe there is good growth potential for the business in the developing countries, and stable or slowly declining growth in the developed ones.

Will be giving away the proceeds though

From wiki:
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Philip Morris International (PMI) (NYSE: PM) is an international tobacco company, with products sold in over 160 countries.

Its main brands are Marlboro, Longbeach, L&M, Philip Morris, Bond Street, Chesterfield, Parliament, Lark, A-Mild, Morven Gold, Muratti, DJI Sam Soe, Multifilter and Virginia Slims.
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THE "BASICS" STRATEGY HOLDS UP DURING THE PANIC

Despite the August market crash and the euro crisis, it's business as usual for one of our "sell the basics" leaders.

Regular readers know that when it comes to investing in high-growth emerging markets like Brazil, India, and China, we tend to avoid hot gadgets and Internet stocks.

We recommend "the basics" approach of owning dominant global companies that sell things like soda, beer, and cigarettes to these markets.

"Boring" products like these enjoy steady, unrelenting demand… There's scant risk new technology will make having a beer after work obsolete. Plus, well-run companies in these industries generate huge cash flows and big dividends.

One of our favorite "basics" leaders is Philip Morris International (PM). A longtime recommendation of our colleague Dan Ferris, PM is the international offshoot of U.S. cigarette powerhouse Altria, which makes it the largest international vendor of cigarettes in the world… and a direct play on the world's growing middle class, much of which is in Asia.

Dan's readers are earning a dividend yield of approximately 6% on their original purchase price.

As you can see from today's chart, Philip Morris sold off a bit during the market crash. Shares fell from $70 to $65. But this 7% drop is small compared to the 15%-35% declines many stocks suffered.

Selling the basics isn't exciting… but it's working… even during the panic.

www.dailywealth.com

Another paper trade, what do you think? Vertical call spread.

Spread_Description Bid Ask
Dec 11 75 / 77.5 C 0.46 0.52
Dec 11 75 C 0.68 0.72
Dec 11 77.5 C 0.2 0.22

Max return 202
Max risk 48

Stock price advance by 6.01% would increase premium by 420%.

how confident are you that price will settle hiigher than 75 by dec expiration?

ANOTHER BIG BASICS LEADER HITS A NEW HIGH

McDonald's isn't the only "basics" stock leading the market… Another DailyWealth favorite is at the head of pack as well.

In yesterday's note, we highlighted how well the "basics" approach to long-term investment is working right now. While riskier companies like banks, homebuilders, and high-tech companies were clobbered during the August panic, "boring," basic, dividend-paying stocks held steady. And in the case of McDonald's, shares have reached a new 52-week high.

Regular readers are familiar with another ultimate "basics" stock we often mention… cigarette maker Philip Morris International (PM).

A longtime recommendation of our colleague Dan Ferris, PM is the international offshoot of U.S. cigarette powerhouse Altria, which makes it the largest international vendor of cigarettes in the world… and a direct play on the world's growing middle class. Dan's readers are earning a dividend yield of approximately 6% on their original purchase price.

As you can see from today's chart, PM sold off a bit this fall… but enjoyed tremendous buying support from investors who realize the company pays a reliable and growing dividend. This buying has pushed PM to a new all-time high. Selling the basics may be boring… but it works.

www.dailywealth.com

IT AIN'T PRETTY, BUT IT WORKS !

In our Valentine's Day edition, we check in with a long-term strategy we love here at DailyWealth… selling the basics.

Regular readers know that when it comes to investing in high-growth emerging markets like Brazil, India, and China, we're drawn to "the basics" approach of owning dominant global companies that sell things like soda, beer, and cigarettes to these markets.

"Boring" products like these enjoy steady demand… and there's scant risk that a new technology will make having a beer after work obsolete. Plus, well-run companies in these industries generate huge cash flows and big dividends.

One of our favorite "basics" leaders is Philip Morris International (PM). We've highlighted the stock many times over the years.

A longtime recommendation of our colleague Dan Ferris, PM is the international offshoot of U.S. cigarette powerhouse Altria, which makes it the largest international vendor of cigarettes in the world… and a direct play on the world's growing middle class, much of which is in Asia. Dan's readers are earning a dividend yield of approximately 6% on their original purchase price.

As you can see from today's chart, "selling the basics" is still worth highlighting. Philip Morris has returned investors 42% in the past year… sports one of the "cleanest" uptrends in the market… and just broke out to a new 52-week high.

We state again: Selling the basics ain't sexy… but it works.


Source: Daily Wealth

not vested

Should You Buy Philip Morris Stock? 3 Pros and 3 Cons (PM)

The tobacco industry is stable, but by no means bulletproof

By Matt Thalman

Source: Investor Place

http://investorplace.com/2015/07/philip ... boNn9IirIU

Tobacco giant Philip Morris International climbs 13% over the past four months.

THIS 'BASICS' GIANT MOVES HIGHER

Today's chart shows that one of our favorite investment themes is working... even while the broad market is in the red for the year.

For years, we've shown you the power of investing in businesses that "sell the basics." These are the safe, dominant companies that offer the boring, simple products people don't think twice about buying... like soda, packaged foods, booze, and power tools. Today, we can see this theme at work in the tobacco industry...

A "basics" leader we've highlighted many times is Philip Morris International (PM). One of the largest cigarette companies in the world, Philip Morris' brands include popular names such as Marlboro (the world's No. 1 cigarette brand), Parliament, and Virginia Slims. It has a $142 billion market cap and produces more than 870 billion cigarettes each year.

As you can see below, selling cigarettes has been a good business, even during the market selloff. Shares are up 6% over the past month and now trade at a two-year high, dramatically outperforming the S&P 500. "Selling the basics" outperforms once again..

Source: Daily Wealth

Tobacco giant Philip Morris climbs nearly 30% over the past year.