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· Business (Tobacco)
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· Liggett
· Vector
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Jump to full article: Seeking Alpha blog network, 2008-07-22
Author: Steve Alexander
Intro: Vector Group (VGR) is structured as a holding company, with two distinct businesses. The first, and by far the majority of revenue is the sale of discount cigarette brands such as Liggett Select, Grand Prix, Pyramid, Eve, and USA. Also, Vector has designed and marketed a nicotine free cigarette called Qwest. The second business is a residential real estate company, Douglas Elliman Realty LLC, which operates in the New York metropolitan area and is the biggest concern of it's type there. Vector Group owns a 50% stake in Douglas Elliman.
From the grades it's obvious that Vector Group is not a favorite of MagicDiligence. There are a few positives to note. . . .
Lastly, the company has a history of restructuring, side businesses, and a confusing set of financial statements. If you cannot understand a business, it's probably not a good investment for you.
With so many other quality companies on the Magic Formula screen, MagicDiligence recommends steering clear of Vector Group.
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