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Reynolds American May Find It Overpaid for Conwood Growth ($$) 

Chew on this: Reynolds is paying 14 times Conwood's operating profit last year. With Reynolds on a multiple of seven times, that's a huge premium to its own valuation. Moreover, even if one generously factors in 10% annual sales growth over the next three years and synergies equal to 10% of Conwood's net sales, the return on investment looks barely above 6%. That's a big price to pay for lassoing a hedge.

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