This weeks Barrons.com cover story is very interesting because of their timing to pick a ‘top’ in Altria (MO).
The growing travails of the tobacco industry, and especially U.S. giant Altria, which faces a high debt load, declining popularity and growing regulation. The shares look unhealthy.
Smokin’ hot. That would be the shares of Altria Group, the leading cigarette maker in the U.S. The stock rose 20% in 2011′s flat market, and it’s up 50% over the past two years, nearly four times the market’s gain. Less than two weeks ago, the company, which is the parent of Philip Morris USA and its iconic Marlboro brand, hit a 52-week high of $30.40.
It isn’t hard to see the appeal: The stock (ticker: MO) has lived up to its reputation as a defensive investment, with stable cash flow and a dividend yield of 5.5%.
Let’s look at what the monthly chart of MO looks like.
Contrarians would say Barron’s cover story is a bullish magazine cover indicator.