Altria Group Inc., #MO [NYSE]
Consumer goods, Production of cigarettes, USA

Financial performance of the company:

Index – S&P 500;
Beta – 0.51;
Capitalization – 121.98 В;
Return on asset – 19.10%;
Income - 5.24 B;
Average volume– 6.36 М;
P/E - 23.33;
ATR – 1.08.


Analytical review:

  • The company ranks the tenth on capitalization in the sector of “Consumer goods” among the issuers traded in the American stock market.
  • At the end of January the company reported for Q4 of the fiscal year 2015. According to press-release in the reporting period company’s net profit rose by 3.3% (from 5.07 billion USD tо 5.24 billion USD). In the reporting period EPS (earnings per share) exceeded 4% from 2.56 USD to 2.67 USD.
  • At the press-conference company’s management has announced that despite strong pressure from the USD revenues in the fiscal year rose by 3.7%, from 24.52 billion USD to 25.43 billion USD;.
  • Over 60% of the company’s shares belong to institutional investors. The largest shares belong to Vanguard Group (5.94%) и Capital Research Global Investors (4.42%).
  • The company launched a program to cut costs. During the year the tobacco company plans to reduce staff by 5%, this measure will help to reduce expenses by 300 million per year. Компания анонсировала программу по сокращению затрат. В течение года табачный гигант планирует сократить рабочий персонал на 5%, что позволит уменьшить расходы на 300 млн. USD в год.
  • Most of the large investment funds and banks (UBS, Stifel, Barclays) predict the rise in the price of stocks up to 70 USD.

Summary:

  • Company’s report for Q4 of the fiscal year 2015 shows that management of the company is headed in the right direction. Despite strong pressure from the USD the company’s net profit has grown, as well as the volume of sales. Most part of the company’s shares belongs to constitutional investors. Large investors expect the rise in the company’s shares.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of Altria Group Inc.

Long-term trading:
at the moment the issuer has broken and consolidated above resistance level of 61.60 USD. We recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed at the level of 59.80 USD. Take profit can be placed in parts at the levels of 63.50 USD, 66.00 USD and 68.00 USD with the use of trailing stop.


Analytical review of the stocks of Altria Group Inc.

Medium-term trading: on the chart with the timeframe 15M the issuer is traded in the range of 61.35-62.40 USD. After breaking out and testing of this range and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 63.50 USD, 64.50 USD and 66.00 USD with the use of trailing stop.


Analytical review of the stocks of Altria Group Inc.




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