Alert: Adding to Positions in Altria and GE, by Brian Nelson, CFA
Though we continue to be cautious on the overall future direction of the markets, we still believe that there are some very attractive ideas out there. Altria (MO) has been one of the best performers in the Best Ideas portfolio (see page 8), and we are excited every time the tobacco (and alcohol) giant pays its hefty quarterly dividend. There’s been some interesting news with respect to industry consolidation that you should know about, and we think it will serve as a fantastic catalyst for the company’s shares to leap past $40 (please see page 3).
We’re also adding to portfolio holding General Electric (GE). The industrial giant plans to spin off one of its riskier financial units in coming months (please see page 15), and we like what it means for the company’s overall risk profile. Few firms in the industrials sector are operating better than GE at this juncture. We expect to increase the positions in both by 25% on Monday morning.
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INSIDE THIS ISSUE
1 Alert: Adding to Positions in GE and Altria – on Monday
1 Is Now the Time to Buy Gold?
3 Big Tobacco, Brewers Want to Continue Consolidation; Altria to Benefit (tickers: BUD, LO, MO, RAI)
4 Baidu Reports Fourth-Quarter Results (ticker: BIDU)
5 Surveying Recent M&A Action (see article for tickers)
7 DirecTV Posts Better-Than-Expected Fourth-Quarter Results (ticker: DTV)
8 Our Best Ideas Portfolio (see article for tickers)
9 BHP Billiton, Rio Tinto Expanding Cash Flow, Paying Down Debt (ticker: BHP, RIO)
10 First Solar Disappoints (ticker: FSLR)
11 Home Depot Posts Solid Fourth Quarter Results (ticker: HD)
13 JC Penney and Best Buy Report Better-Than-Feared Performance (tickers: BBY, JCP)
15 General Electric Is in the Bargain Bin (tickers: GE)
16 E-commerce Remains in Secular Expansion (tickers: AMZN, EBAY)
18 The Watch List
20 Featured Reports: T, MGEE, APU
23 Our Stock-Selection Methodology