The downgrade caused for PM to move sharply lower from the highs ($47.70) and close lower despite the higher indexes. Bad timing / luck since the US$ heading lower should have helped PM move above $48... It was headed there until our friends from UBS killed the rally.
I wouldn't be to anxious about that rating. This is not the first time that analyst Thomas Kruemmel, UBS AG (thomas. email@example.com)is signing such a hazardous analysis.
He believes exceptionally good growth, unlikely to be maintained. He has probably the better cristall ball than I have.
My meaning about that is buy on dips and keep. PM is a long term story, the best insurance through the storm of the markets !
THIS STATEMENT APPEARS ON THE UBS RESEARCH PAGE FOR "PM".
UBS Wealth Management Research: For Individuals
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Sector : Food, Beverage & Tobacco
Country : United States
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Discontinuation of coverage
(Jun 17, 2009)
Philip Morris International : Currency volatility takes its toll; Hold
(Mar 19, 2009)
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§ As part of the Global Research Settlement, UBS and a number of other firms agreed to provide access to Independent Research on certain covered companies to customers in the US for a period of five years, ending July 27, 2009. As of this date, UBS will no longer provide access to Independent Research. However, you will still be able to access reports from UBS Wealth Management Research and UBS Investment Research (from UBS Investment Bank) from your Financial Advisor or from Online Services by selecting the "Research/For Individuals or For Institutions" tabs respectively.
Such a wise statement from a young guy. Long term with reinvested dividends PM is a solid, get rich slowly investment. Small caps, biotechs, commodities will all move faster one way or another but if one wants to just sit back and watch their investment gain value by the months and years PM is the way to go. Patience does not seem to be a virtue these days and getting rich is not easy. If it were we would not be writing these posts and hoping for the next home run. Nor would we be listening to the “experts”. Have you ever asked yourself, if the experts were so correct on their calls in the markets why are they not getting rich in the markets instead of pedaling their drivel….Have I got a deal for you!
Come back to this post in five years.
If you want to get rich quick buy mining or infrastructure companies...there is a place for that in a portfolio. You can get poor quick also though.
If you want to get rich over the long haul buy high yield safe steady growth stocks like PM, PG, MCD, ADP, KFT, etc. Minimal upside in the short term...more importantly minimal downside also.
Philip Morris International (PM 46.60, -0.22, -0.47%) was downgraded to neutral from buy at UBS, which said the cigarette maker is trading at a significant valuation premium to its peers.
LONDON (MarketWatch) -- Philip Morris International (PM 46.60, -0.22, -0.47%) (FR:PM 33.47, +0.01, +0.03%) was cut to neutral from buy at UBS, though the broker lifted the cigarette maker's price target to $47 from $45.50. "The stock has risen 40%+ since its March low point and is now trading on a significant valuation premium to its international and domestic peers," the brokerage said