Tobacco.org

Magic Formula Stock Review: Vector Group (VGR) 

Vector Group is structured as a holding company, but the company's business is selling discount cigarette brands in the United States. Their two largest brands are Grand Prix (29% of volume) and Liggett Select (23%), and the company also sells Pyramid, Eve, and USA. Vector Group also owns a 50% stake in Douglas Elliman, a realtor in the New York metropolitan area, but real estate is such a small contributor to operating earnings that it can basically be ignored for the purposes of analysis here.

There are few bullish arguments on the stock . . .

So that's the case for the stock... now let's get to the negatives, which dwarf the positives, keep Vector Group far out of the MagicDiligence Top Buys portfolio, and in fact should keep MFI investors out of the stock. First and foremost is the government's shadow war on smoking.

Jump to full article »