Description

Worldwide, Old economy stocks in general and tobacco stocks are depressed.
The biggest, best managed tobacco player tobacco player is Philip Morris
Companies, Inc. (MO). Because of bancrupcy fears because of a Engle trial in Florida the stock is damn cheap now (PE=6; Div.Yld=9%).

Basically MO has three huge cash generators generation in total
15 billion USD per year in operating cash flow:

1) Domestic (USA) tobacco - 5 billion
2) International tobacco - 5 billion
3) Food (Kraft) and beer (miller) - 5 billion

The domestic operating company (Philip Morris) is being sued. If it
looses everything because of the trial, there are still 10 billion
dollars operating cashflow left.

The non-tobacco assets (Kraft and miller) are worth about $40-$60
per share when compared to food- and beer- only stocks.

Furtermore insiders are buying like mad (especially Mexican
tobacco baron and MO director Slim Carlos $90 million) - insider buying
started ad $25.

Furthermore, is MO buying back shares worth $3 billion per year -
this has an enourmous effect at these depressed prices.

Catalyst

Court decision in trial or supreme court decision or new legislation (as is being introduced in Florida right now).