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UofT to dump tobacco investments  

The University of Toronto is the latest university to alter its investment portfolio, citing ethical concerns. With yesterday's announcement to divest millions in tobacco stocks, U of T became the first educational institution in Canada to boycott the tobacco industry.

A student activist who successfully campaigned to have U of T sell off its tobacco investments says other Canadian schools should follow suit and end the "unethical practice."

"We hope that other institutions will get a clear message that investing in tobacco companies is an unethical practice and it's something that should not be done," Tyler Ward, president of Education Bringing Youth Tobacco Truths(E-BUTT).

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Ahead of the Bell: Altria downgraded due to 2009 risks  

A JPMorgan analyst thinks taxes and government regulation could hurt Altria's profit in 2009, and he downgraded the cigarette maker's shares.

Erik Bloomquist cut his rating to "Neutral" from "Overweight" and removed the stock from a list of recommended securities. While he expects Altria to reach the high end of its profit estimate this year, he said an increase in the federal cigarette tax and greater Food and Drug Administration regulations are likely.

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Lighten Up on the Tobacco Sector ($$) 

TOBACCO STOCKS HAVE TRADED roughly in line with the market (both down 8%) -- a disappointment to us and many investors. We believe tobacco stocks have been weighed down by accelerating volume declines, a potential federal excise tax increase in 2009, state excise tax increases and a potential Democratic president.

On a total return basis, tobacco has done slightly better due to the sector's 5% average dividend yield versus 2% for the Standard & Poor's 500. Needless to say, the sector is not performing the way we had expected.

We have trimmed our 2008 earnings-per-share estimates

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UST Shares Slide on Goldman Downgrade 

Analyst Judy E. Hong lowered her rating to "Neutral" from "Buy" and took the stock off the Americas Buy List. She said in a note to investors the shares have "limited upside potential" compared to tobacco competitors Altria Group Inc. and the newly spun-off Philip Morris International Inc.

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Philip Morris divisional SVP buys shares 

The senior vice president of human resources at cigarette maker Philip Morris (NYSE:MO) International Inc. bought 36,000 shares of stock, according to a Securities and Exchange Commission filing Tuesday.

In a Form 4 filed with the SEC, Daniele Regorda reported she bought the shares for $48.78 to 49.87 apiece on Friday, the day Philip Morris was spun off from its former parent, Altria Group.

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Altria Drops Most Since 2006 After Morgan Stanley Downgrade 

Altria Group Inc., the largest U.S. tobacco company, fell the most in 18 months after Morgan Stanley lowered its rating on the stock on concerns management won't aggressively buy back shares and cut costs after spinning off its international division last week.

A plan by Altria, the maker of top-selling Marlboro, to buy back $7.5 billion in stock over the next two years fell $2.5 billion below Morgan Stanley analyst David Adelman's expectation. Adelman said in a note to investors today that he downgraded Altria to ``equal-weight'' from ``overweight''

Chief Executive Officer Michael Szymanczyk probably won't increase the pace of buybacks or cut more costs, and the company isn't likely to spin off its 28.6 percent stake in brewer SABMiller Plc to generate cash, the analyst said.

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Market Blog - Feeling good about Philip 

Defensive tobacco stocks look passé on a day when investors are scooping up high-growth stocks that will benefit from a bull market and renewed economic growth. But that doesn't mean Philip Morris International Inc. will stay tossed aside for long.

Jonathan Fell, an analyst at Deutsche Bank, initiated coverage on the stock with a "buy" recommendation and a 12-month target price of $57 (U.S.). The company, the result of a recent spin off from Altria Group Inc., which separated the company's domestic and international operations, traded at $50.02 in New York on Tuesday, down 56 cents or 1.1 per cent.

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Sector Snap: Tobacco Makers Gain 

Analysts from Lehman Brothers and Stifel Nicolaus initiated coverage of Philip Morris International with "Buy" ratings, saying the cigarette maker will be insulated from the threat of U.S. lawsuits and slowing sales.

The split of Altria's cigarette operations into foreign and U.S. units frees Philip Morris International from public-relations concerns and possible lawsuits and allows it to concentrate on expanding its line of cigarette products to markets in developing countries. . . .

Other tobacco companies made gains on Monday.

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Altria Shares Fall After Spin-Off  

Shares of Altria Group Inc. dropped Tuesday after a Morgan Stanley analyst downgraded the stock on its first trading day after spinning off its Philip Morris international business.

Shares fell 98 cents, or 4.4 percent, to $21.22 in afternoon trading.

Analyst David J. Adelman lowered his rating to "Equal Weight" from "Overweight" and said in a note to investors that that the company's prospects for outperformance have diminished.

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Deutsche Bank Starts Philip Morris International (PM) at Buy 

The firm said, "PMI, the world's largest publicly-traded tobacco company, should be an attractive stock to investors looking for steady, cash-rich growth in turbulent times. We expect the stock to generate consistent high single-figure EPS

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The Marlboro Man Is Free to Roam 

Altria (NYSE: MO) completed the long-awaited spinoff of its subsidiary Philip Morris International (NYSE: PM) last Friday, and the Marlboro Man is finally free to roam the globe unfettered by the legal and marketing shackles of the U.S. domestic market.

Benefits for both the slimmer Altria and the new international company will be realized, but I think the international division will flourish on its own thanks to its leadership position in the international cigarette market and the strength and marketing potential of its global brand.

A global giant Philip Morris International, or PMI, is the world's leading tobacco company and the third most profitable international consumer goods company. It generated revenue in excess of $55 billion and operating profit of roughly $8.9 billion in fiscal 2007.

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Philip Morris Intl shares rise in market debut 

Shares of Philip Morris International Inc, the world's largest non-state-owned cigarette maker, rose as much as 5 percent on Monday morning in their first day of trading after the company was spun off from Altria Group Inc.

The shares were up $1.94 to $53.00 and traded as high as $53.70. Altria shares were up 23 cents, or 1 percent, at $22.99.

Investors have long anticipated the Philip Morris International spinoff as a way to get a pure play on the growing overseas tobacco business without being tied to a shrinking U.S. cigarette market. The company trails only state-run China National Tobacco Co in terms of global market share.

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Altria Rises on Philip Morris International Spinoff (Update1) 

Altria Group Inc., the world's largest traded tobacco company, rose less than 1 percent on its final trading day before spinning off its overseas division.

Altria expects to complete the spinoff today, giving investors one share of Philip Morris International for each Altria share they owned March 19. The company will trade under the ticker symbol ``PM,'' starting March 31, while Altria keeps ``MO.''

Altria Chief Executive Officer Louis Camilleri takes charge of Philip Morris International and aims to sell more Marlboro cigarettes in China and India as smoking bans crimp sales in western Europe. In the U.S., Altria wants to increase Marlboro's share of smokers while expanding into snuff and cigars.

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• Standard & Poor's Announces Changes to U.S. Indices 

Philip Morris International Inc. (NYSE: PMwi) will replace S&P 500 constituent Allegheny Technologies Inc. (NYSE: ATI) in the S&P 100, and will replace Circuit City Stores Inc. (NYSE: CC) in the S&P 500, after the close of trading on Friday, March 28. Philip Morris International is being spun off by S&P 100 and S&P 500 constituent Altria Group Inc. (NYSE: MO) in a transaction expected to be completed on or about that date. Allegheny Technologies will remain in the S&P 500.

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Marlboro maker wants spot in S&P 500 index 

PHILIP Morris International Chief Executive-designate Louis Camilleri said he hopes the Standard & Poor's 500 Index will admit his company, Europe's largest cigarette maker.

The company, which will be spun off from parent Altria Group Inc this month, doesn't now meet the index committee's requirement of making revenue in the United States, Camilleri said at a London meeting with investors and analysts yesterday. The committee can waive that rule, and Lausanne, Switzerland-based PMI expects a decision next week, he said.

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