Cigarette consumption has been declining at a 4% rate in the U.S. market, with recent health regulations, litigation towards tobacco companies and increased medical awareness exacerbating this trend even more. With the Food and Drug Administration now in charge of regulating tobacco consumerism and imposing taxation, which has seen 113 increases since the year 2000, industry players are struggling to maintain their earnings growth.
However, Altria Group Inc. (MO) doesn’t seem to be part of the struggles. In fact, while the company’s revenue has been almost flat year-over-year, it has managed to continue growing into a worthwhile investment. Thus, investment gurus like Sarah Ketterer (Trades, Portfolio) and Ray Dalio (Trades, Portfolio) have bought Altria’s shares last quarter, hoping to gain solid profits looking forward. Continue Reading »