Altria (MO) at $35
“I want to buy Altria at $35”
This is only my opinion, not financial Advice.
Altria is one of the biggest companies on the Stock Market and Tabacco is the oldest industry in the world, and will be for next few years to come.
Therefore all societies have in their culture the use of tabacco, for fun or for medicinal purposes.
Altria Group, Inc. (previously known as Philip Morris Companies, Inc.)
is an American corporation and one of the world’s largest producers and marketers of tobacco, cigarettes and related products.
It operates worldwide and is headquartered in Henrico County, Virginia, just outside the city of Richmond.
Altria is the parent company of Philip Morris USA (producer of Marlboro cigarettes), John Middleton, Inc., U.S. Smokeless Tobacco Company, Inc., Philip Morris Capital Corporation, and Chateau Ste. Michelle Wine Estates.
It is a component of the S&P 500 and was a component of the Dow Jones Industrial Average from 1985 to 2008, dropping due to spin-offs of Kraft Foods Inc. in 2007 and Philip Morris International in 2008.
Investing in (MO)
After a small introduction of what is Altria, let’s talk about investing in Altria.
Buying shares like MO is without a doubt a good investment for to main reasons:
- Grow Value
Dividends are payments that companies pay to the shareholders as result of gratitude for investing in the company. (returning the favour)
Grow Value is when you hope that the value of the shares of the company increase during the next years, so your initial investment grow in value and if you decide to sell your shares you will get a good profit.
At this moment, Altria yield is about 7.5%, this means if you invest $100 you will get $7.5, that is a really good deal.
A good yield for a healthy company is between 5% to 8%.
Weekly chart means that each red or green “candle” is a week time.
As you can see since 2017 Altria is going down in value but doesn’t mean that is not a great investment.
All the shares in some point in time have to go down before going up again.
Is like Formula 1, sometimes the fast car need to stop on the box-pit to change tires and put petrol.
So in the shares market happen the exactly the same, not only in the share market but in all the world economy, in this case we call recession.
In this post I’m not going to teach Technical Analysis, but I’ll point some indicators that help you to understand the future of Altria.
What Is a Moving Average?
A moving average (MA) is a widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random short-term price fluctuations.
It is a trend-following, or lagging, indicator because it is based on past prices.
The two basic and commonly used moving averages are the simple moving average (SMA), which is the simple average of a security over a defined number of time periods, and the exponential moving average (EMA), which gives greater weight to more recent prices.
The most common applications of moving averages are to identify the trend direction and to determine support and resistance levels. While moving averages are useful enough on their own, they also form the basis for other technical indicators such as the moving average convergence divergence (MACD). Please invest in yourself, get a book from Amazon about Technical Analysis Click on HERE
Why I believe that Altria is going "close" to $35 dollars
I believe that in some point in time in the future Altria (MO) is going to be close to the 200 Moving Average.
The red line in the chart above represent the 200 MA and normally the 200 MA is the support, is the last resistance, is the bottom.
Please understand that this is a Monthly Chart, means that each green and red line is a month, so will take a bit to get around my target price of $35.
Be patient, and wait for the price.
Read a good book, go for a run and wait for the price.
Be patient, because good things happen to the ones that know how to wait and control the FOMO.
FOMO = Fear of missing out.
Thanks for checking this post, please comment or ask me any question related to this topic.