By the way, since you seem to know the tobacco industry well, what are your top picks for retail tobacco?
I like the thesis for PM, with mostly international exposure and lower litigation risks. But when I look at the cash flow, it looks to me like PM is borrowing money for the last year to do stock buybacks it cannot afford to do from operating cash flows. This has the effect of propping up the stock while destroying shareholder equity. I love buybacks done from free cash flow, but I hate the idea that they are going to burden the company with debt to buy back stock. That cannot be a good long term strategy for building shareholder equity. Somewhat cynically, I have to wonder is that management just trying to increase the value of its own incentive stock at the cost of shareholders in the long term?