Dude if you have extra cash, buy another 1k shares at 39. That should bring your cost basis down to 43.50. I started my position in PM at 49 and 46. NOw my average basis is 43s because I watched this closely and bought on huge dips. And don't worry so much...PM's p/e is around 12 with growth rate of 17-20%. It's a good deal. On top of that we get 5% dividends and also the share buyback program which should reduce the float at least 10% which means our EPS would only keep going up. And I don't know if you been to Asia before but Marlboro Lights is THE cigarette to smoke in the industrialized and developing nations there. So imagine when china starts adopting marlboros...I may be frustrated with the price action on this POS but I'm certainly not worried. I would load up the boat on this baby if there's a big dip. It's a great company and within two years we'll be a lot higher than current levels that's for sure!!
I'm just messing with you klongterm. You are a funny guy and bring some humor to my day when PM has a lousy day :) Listen I see PM trading between 39 to 45 for a while. That's why I'm going to start trading half my holdings in PM. Sell at 45 and buy back at 39-40. Keep the rest until it hits 54 again god knows when. If PM's calls were worth anything I would sell the 50 covered calls but it's worth jack
Bottom line is that PM is undervalued. No one ever sees it untill it moves back up to where it deserves to be trading. My guess is that a lot of money is being positioned in to high beta stocks for a bigger gain beginnng next year. Good luck. You cant lose with PM at this level.
I am a long holder of PM and the recent weakness has been puzzling to me as well. My only thought is that there are several large traders using PM as a proxy for weakness or strength of the U. S. Dollar on any given day.
Fundamentals do not seem to matter these days even though PM has strong ones.