MO Altria Group possible A=C plus bear flag Let's discuss it.

BATS:MO   Altria Group, Inc.

Well, first of all, it's important to note that I have an open position in this dividend-paying stock because I want to hold it for the long term.

However, we should not ignore the fact that we will start wave C of a possible ABC correction soon. We can also see a bear flag shape. Both have a price target of ~$14 to $15.

Regarding the fundamentals, some important things:

  • Traditional tobacco companies have to face the fact that their products are becoming more and more expensive, thus many people buy cheaper products.
  • Vapor and liquid alternatives are increasingly popular among the younger generation. Because they are fragrant, tasty and cheaper.
  • Although these companies have made a lot of profit in the past decades, they are now facing another challenge. If they want to stay competitive, they have to develop to catch up with their competitors who produce products based on new technologies.
  • Altria Group is constantly working to achieve this. However, the transformation of the production technology and the necessary permits (e.g. FDA) are essential for its success. It's all money and time.

All in all, I think that stocks of traditional tobacco companies are still a good long-term investment. However, it should be taken into account that they may underperform in the coming months. And they can hit new lows.
That's why I didn't use all my resources that I intended for this stock. Because if we actually reach the ~$15 zone, then I want to significantly increase my position size there.

Please tell me what you think about it. And share your thoughts.

Do not forget. This does not constitute investment advice. Do your own research before entering a position.


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