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Global Tobacco Index: Smokin' Performance on M&A and Defensive Buying

Global Tobacco Index: Smokin' Performance

Top 5 Companies by 1-Year Stock Gain
Top 5 Companies by Market Cap

The tobacco industry is smokin' the overall market and benchmark funds over the past year thanks to news today that Altria (MO) is looking to buy smokeless tobacco company UST for about $10 billion and defensive buying by investors as economic uncertainties drag down the overall market the past few days. Another notable mover is Star Scientific (STSI), which

The chimps in the MSM are saying "Altria's (MO) profits fall". Well, if you spun off 75% or your business, yeah, they would. But the 25% that is left did better this year than last ,and that is all that matters.

Here is what the headlines out there today failed to tell you:

PM USA estimates that total cigarette industry volume declined approximately 4% in the first quarter. For the full-year 2008, PM USA estimates a total cigarette industry volume decline of approximately 3%.

Regardless of how you feel about Big Tobacco, you have to admit that Altria is so successful because it runs a business built on a fundamentally consumer-driven -- and highly addictive -- product. Plenty of other great companies display similar characteristics -- Coca-Cola (NYSE: KO ) ring a bell? We definitely want a business that appeals to consumers' most basic interests.

Recap of CNBC's Fast Money, Tuesday April 29. Click on a stock ticker for more analysis.
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ConcoPhillips (COP), Potash (POT), Wal-Mart (WMT)

Jeff Macke discussed oil’s 2% slide downward and thinks gold is a better short than oil, which hasn’t yet topped. Karen Finerman thinks the dollar has yet to hit bottom, and says the Fed should not cut rates.. Pete Najarian said investors are leaving oil, metals and agriculture behind after they have had amazing runs. He discussed POT’s and COP’s numbers and thinks investors should be willing to take some off the top, but with oil at $110,

Filed under: Forecasts, Apple Inc (AAPL), Dell (DELL), General Electric (GE), Wal-Mart (WMT), Home Depot (HD), Altria Group (MO), Commodities, Stocks to Buy, Burlington Northern Santa Fe (BNI)

Let's take a look at the FDA Tobacco Bill and see what effect it may have on the industry.

The bill would affect tobacco products manufactured and sold primarily by R.J. Reynolds Tobacco (RAI), Loews Corp.'s Lorillard Tobacco (LTR), Vector Group Ltd.'s Liggett Group (VGR), British American Tobacco [BAT] and Altria (MO) in the US. The bill will enable the FDA to prevent the introduction of new cigarette brands.

Folks selling off thinking we no longer need to play defensive with stocks.  Great buy on pullbacks, and any renewed news on monoline fear will drive it back up.   

With the stock split up, the international brand carries huge potential for gains.  It's a great opportunity to enjoy a split where the parts are greater than the sum of its price.

Leading cigarette making company. Defense play in a slow market. High growth prospects. 3.8% dividend. I think MO is the best buy in this business cycle.

well...i tell you its a great company.. I have worked for them over 27 yrs.. i have increased my porfolio x 4 in the last 12 yrs .. in other words ,i have increased the value. x4 .in  the last  12yrs. but have also lost have of my investment.. by trying to time the market..I am still on top .though..... my only regret, is That I didn't stick to my original plan of investing, whether the stock was up or down.. ,I only see upside in the comming months ...with little risk.!!  Iam buying as much as can be allowed at this time .. Thanks Robert