Philip Morris International: A Simple Formula for Success (PM)

"We will leave the debate over the relative morality of the cigarette business to others," says Geoffrey Seiler, adding "Our view is simple: it is a legal product and Philip Morris International PM is one of the best operators in the segment." The editor of BullMarket.com explains, "The Philip Morris value creation model is easy to understand. While organic volumes are still slipping, the tobacco industry continues to have great pricing power. "Thus the simple formula for the company is to raise prices, use its prolific cash flow to buy back shares, make some accretive acquisitions, increase the dividend, and repeat. "This simple shareholder friendly formula boosts earnings and creates a solid growth and income story. Continue reading the article.