It seems like this company's PE is significantly higher than similar companies like PM, MO,BAT,RAIDoes anyone have ny ideas why?Are they expected to double their profit within the next 12-24 months?
The company is a dividend play - $1.60 per year in cash dividend, plus 5% more shares every year.A better way to value this company is to look at evaluate its ability to pay that dividend, which is driven primarily by:(1) The operating income/cash flow of its conventional cigarette business - this is key to its ability to continue to pay out dividend while increasing share base 5% per year(2)The value of its hidden real estate holdings - this will provide the additional cash
"The company is a dividend play - $1.60 per year in cash dividend, plus 5% more shares every year."Very true.That was the reason I bought VGR.According to smartmoney.com VGR's Growth Estimates for the Current Year is 36.80% .Looks like VGR may want to be ready ,to sell even more cheap smokes during these times.I'm holding ,and reinvesting my dividends.Well best of luck to all.
Looks like growth.NRGY also has a high P/E but has a lot of growth.Compare up to 5 stocks side by side here.http://www.smartmoney.com/dynamiccompare/?story=compare&grpNum=1&table=shareinfo,financialstrength,growthestimate&refstory=snapshot&origTicker=VGR