The Goldman Sachs price target for MO was $24 as of 09/30/2010. MO closed at $26.xx on 11/04/2010 and 11/05/2010 -- $2 above the price target which is 5 quarters of dividends. Cramer sold his MO at $25.xx and is waiting to buy it back with a $22 handle. This is actually a good trading strategy, hold onto a stock until it beats the target price and then wait for it to start going down to sell it.
He mentioned on the show that he was thinking about selling, mentioned on the show that he had sold some and then mentioned that he was out and waiting for a $22 handle to buy back in. If you subscribe to his Action Alerts Plus service, he would tell you right before he was going to sell and at what price.
I kept my MO because I am hard pressed to find 6% yielders, I thought that Goldman and others would raise their targets and the MO story is intact. If it does trade down to $22.xx I will probably buy more.
BUT, I have learned my lesson and will look to sell out-of-the-money calls on MO the next time MO trades above its target.
The Goldman Sachs target price as of 12/31/2010 for MO is now $26. This matches the $26 average target price by analysts that Market Watch follows. $2 upside on a $24 stocks is an 8.33% return. Add in a 6.31% dividend and you get a total return of 14.6%. This beats the 10% or so yield on VGR assuming they maintain the dividend.