MO

MO, while you might not agree with parts of their business, (cigarettes such as the Marlboro brand,) has been one of the best, and I mean best stocks of the last 15 years. All of the reasons not to buy it were apparent.....think -shrinking advertising both print and media, bans in most bars, most places of work etc, on top of numerous class action lawsuits that have over the last few years been settled or thrown out.

When I first bought this stock, which I think was in the early part of the last decade, it had a 6 multiple. It simply looked cheap, even with all of its obvious problems. I have owned this stock longer than any stock I have ever followed. Yesterday I did something I thought I might never do and that is I sold half of my MO. I can't get that old trading axiom out of my head, one that you learn early on and that serves you well generally...."buy the rumor, sell the fact."

The fact is that the mkt has been looking for the lawsuits to get put to rest so MO can split itself up and set Kraft free and have the Cigarette business stand alone. This week they announced that and the stock has done nothing since. Yes, there are reasons to continue to be bullish, and I am not saying I won't buy some if and when it dips further, but for now I feel good about having taken profit now that the news is out and the plan set forth. Time will tell if I was right....we will see.