HomeMost Popular Altria Group: Cannabis Could Grant Them A Life...

Altria Group: Cannabis Could Grant Them A Life Cycle Extension Altria Group Poised for Cannabis-Fueled Liftoff

Actionable Trade Ideas

always free

Philip Morris Changes Name To Altria

Why Altria Group Could Be a Game-Changer

So, picture this: my buddyโ€™s about to cash in his chips and sail off into the sunset. He asked me for some hot tips on companies that pack a punch with their dividends. It wasnโ€™t long before I had Altria Group, Inc. (NYSE:MO) on the tip of my tongue. These cats are swimming in cash and have been buying back shares like thereโ€™s no tomorrow. That move fueled a dividend increase, and if they keep riding that wave, itโ€™s only gonna get better.

But hold up! The real deal is this: Altria is standing at the starting line, just waiting for the green light to scoop up some cannabis companies as soon as the bigwigs in Washington give the green light. Now, whispering in the shadows, thereโ€™s news of Uncle Joe and the DEA cooking up plans to ease the regulations on cannabis. Once thatโ€™s official, Altria could be riding high on the cannabis wave like a pro surfer in no time.

Then thereโ€™s the SAFE Banking Act, which could pave the way for Altria to jump headfirst into the cannabis game without fretting over getting kicked off any major exchanges. You follow me? Theyโ€™re on the brink of extending their business life cycle by staking a claim in a whole new industry, right within their wheelhouse.

You see the smokes rising? After sizing them up, Iโ€™d slap a โ€œBuyโ€ rating on Altria faster than you can say โ€œcash money.โ€

Hitting The Ground Running: Company Background

Altria Group, Inc. is no spring chicken โ€“ theyโ€™ve been running the tobacco show since 1822, spreading their smokes all over the globe. Brands like Marlboro, Black & Mild, and Skoal? Yeah, those are all Altriaโ€™s babies. They call Richmond, Virginia, home base.

The thing is, the tobacco industry has been coughing up a lung, and smoking rates have been plummeting. But while everyone else was gasping for air, Altria tightened their belts and hustled into new markets, keeping that cash flowing.

Lighting Up The Path: Cannabis Expansion

Spotting the writing on the wall, Altria decided it was time to branch out and roll into the cannabis game. They threw down a cool $1.8B USD to snatch up Cronos Group Inc. in Canada. But they ainโ€™t the only ones โ€“ their tobacco pals are also gearing up to storm the cannabis scene with their war chests full of dough. This ainโ€™t no joke; itโ€™s gonna be a showdown between the tobacco giants and the cannabis industry.

Staying Power: Long-Term Trends

If youโ€™re placing your bets, take a good look at the numbers: the global tobacco industry is puffing along with a CAGR of 2.55% to 3.75%, but in the other corner, the U.S. cannabis industry is burning with a CAGR of 14.2%, and Canadaโ€™s not far behind with a 13.26% CAGR. Heck, even Germany is gearing up to crack open the recreational cannabis market. The forecast? A whopping 31.5% CAGR for good olโ€™ CBD on the global stage.

Game Plan: Guidance

Word on the street โ€“ Altriaโ€™s expansion into smokeless tobacco is picking up steam, and their NJOY ACE is the only e-vapor product given the green light by the FDA. Theyโ€™ve got their eyes set on doubling their presence in stores, aiming for that 70,000-store mark by the end of the quarter. But theyโ€™re not just blowing smoke โ€“ theyโ€™re dead serious about the FDA stepping up and setting some clear rules about e-vapor products.

On top of all that, their nicotine pouches had a 5% growth spurt in the last six months, gobbling up a tasty 32% share of the oral market. Itโ€™s like hitting the jackpot โ€“ shipments for their on! product shot up 37%, and the price tagโ€™s been beefed up by 33% โ€“ talk about striking gold.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.