Posts for Ticker ‘VGR’

Defensive Stocks Offering No Haven (WMT, PEP, KO, TAP, KFT, CAG, CPB, HRL, MCD, MO, VGR, RAI, PG, CL, MRK, JNJ, NVO)

Burning Money PicWasn’t it just last week that we were up eight days in a row on the DJIA?  And now we have a sell-the-news reaction to the recent growth numbers.  Maybe it is because we ran too far too fast and because we started pricing in robust growth rather than muted growth.  But generally when equities have stayed hot and then start to sell off in profit taking or in case things got too heated, you at least see a migration into some of the defensive stocks.  That is not the case.  In our normal 16 Defensive Go-To Stocks, only ONE was up.  If you throw in Wal-Mart Stores Inc. (NYSE: WMT) as the ultimate defensive stock like we usually do, then you have only TWO of 17 trading up on the day….

PEPSICO INC (NYSE: PEP) $56.1805.. Down $0.4895; -0.86%
COCA COLA CO (NYSE: KO) $48.58.. Down $0.19; -0.39%
MOLSON COORS CO. (NYSE: TAP) $47.01.. Down $0.37; -0.78%
KRAFT FOODS INC. (NYSE: KFT) $28.08..  Down $0.27; -0.95%
CONAGRA FOOD INC. (NYSE: CAG) $20.13.. Down $0.40; -1.95%
CAMPBELL SOUP CO. (NYSE: CPB) $30.86.. Down $0.50; -1.59%
HORMEL FOODS CORP. (NYSE: HRL) $37.00..    Up 0.05; +0.14%
MCDONALDS CORP. (NYSE: MCD) $55.72.. Down $0.51; -0.92%
ALTRIA GROUP INC. (NYSE: MO) $18.13.. Down $0.16; -0.83%
VECTOR GROUP LTD. (NYSE: VGR) $15.71.. Down $0.07; -0.44%
REYNOLDS AMERICAN (NYSE: RAI) $45.17.. Down $0.54; -1.18%
PROCTER GAMBLE CO. (NYSE: PG) $53.05.. Down $1.06; -1.96%
COLGATE PALMOLIVE (NYSE: CL) $71.82.. Down $0.89; -1.21%
MERCK CO INC. (NYSE: MRK) $31.79.. Down $0.64; -1.97%
JOHNSON & JOHNSON (NYSE: JNJ) $59.88.. Down $0.56; -0.92%
NOVO NORDISK (NYSE: NVO) $60.024.. Down $0.986; -1.62%

Oddly enough, Wal-Mart is the ONLY one of the DJIA 30 components trading higher this afternoon.

JON C. OGG
SEPTEMBER 1, 2009

Posted on: September 1, 2009 – 2:31 pm in Defensive Stocks, Trading Alert, , , , , , , , , , , , , , , , ,

SPAC IPO Filing: Open Acquisition Corp. (OXE, VGR)

Open Acquisition Corp. is a SPAC, a special purpose acquisition company, that has filed to come public via an IPO.  With $125 million proceeds targeted at $10.00 per unit, each unit will consist of one share of stock and one warrant with a $7.50 strike price.  The total proposed maximum aggregate amount in securities is listed as $264,687,600.00.  Deutsche Bank is listed as the lead underwriter.  Once the securities begin separate trading, the common stock and warrants will be traded under the symbols “OXE” and “OXE.W” on the American Stock Exchange.

The filing does not specify a particular business focus, however, it is organized with the purpose to own no less than a controlling share in a “merger, capital stock exchange, stock or asset acquisition, or other similar business combination.”  Furthermore, it does specify which businesses that it will NOT engage in: real estate brokerage, insurance brokerage and employee benefits, retail investment advisory and asset management services, quick service restaurants, nor in tobacco.

In identifying a target, the management will evaluate aspects such as the following: earnings and growth potential; experience and skill of management and availability of additional personnel; capital requirements; competitive position; financial condition and results of operation; stage of development of the products, processes or services; breadth of services offered; degree of current or potential market acceptance of the products, processes or services; regulatory environment of the industry; and costs associated with effecting the business combination.

Open Acquisition Corp. chairman is Howard M. Lorber and President/CEO is Michael S. Liebowitz. Lorber is the current President and CEO of Vector Group (NYSE: VGR), a holding company focused on tobacco and real estate businesses. He is also the chairman and CEO of fast food chain Nathan’s Famous, Inc. Liebowitz is the former president and CEO of Harbor Group, Ltd., a property and casualty brokerage firm. He is the current president and CEO of Insreview, Inc, an insurance consultant for investment banks, capital market and mezzanine lenders, and real estate opportunity funds.

Rachel Lopez
January 30, 2008

Posted on: January 30, 2008 – 10:58 am in IPOs, ,

Defensive Stocks Show Rotation Out of Tech (PEP, KO, BUD, TAP, KFT, CAG, CPB, HRL, MCD, MO, VGR, RAI, PG, CL, MRK, JNJ, NVO)

The markets haven’t fallen apart after yesterday’s 360 point dive on the DJIA, but we are still trading a tad lower today.  Now that Cisco Systems is showing you can’t just automatically hide out in all big technology stocks, it appears that investors who want to keep equity exposure are flocking to the DEFENSIVE STOCK names.  You can see below on our ticker list of defensive stocks that only Campbell Soup (NYSE:CPB) is not up today out of our 17 go-to defensive stocks.

DJI            13,249.05    -50.97    (-0.38%)   
S&P500    1,473.49     -2.13       (-0.14%)
NASDAQ   2,718.11    -30.65     (-1.12%)

PEP    $60.77    +$0.81 (1.35%)   
BUD    $50.29    +$0.23 (0.46%)   
TAP    $54.25    +$0.36 (0.67%)   
KFT    $33.37    +$0.04 (0.12%)   
CAG    $23.03    +$0.02 (0.09%)   
CPB    $35.50    -$0.08 (0.22%)   
HRL    $35.16    +$0.09 (0.26%)   
MCD    $59.21    +$0.83 (1.42%)   
MO      $72.75    +$0.77 (1.07%)   
VGR    $21.89    +$0.30 (1.39%)   
RAI     $63.71    +$0.64 (1.01%)   
PG     $70.07    +$0.65 (0.94%)   
CL     $75.33    +$0.01 (0.01%)   
MRK   $54.59    +$0.39 (0.72%)   
JNJ    $64.20    +$0.29 (0.45%)   
NVO  $123.41   +$1.72 (1.41%)   

Out of the top 10 holdings in the NASDAQ 100 QQQ (NASDAQ:QQQQ), only Microsoft (NASDAQ:MSFT) and Qualcomm (NASDAQ:QCOM) are trading up.  Unlike prior cautionary days, technology is giving back at least some of the gains today after the Cisco news last night.  It’s hard to tell a trend reversal if it is only the first or second day, but you can at least see where the money is going today (and it isn’t flocking back into financials yet).

Jon C. Ogg
November 8, 2007

Posted on: November 8, 2007 – 12:08 pm in Defensive Stocks, , , , , , , , , , , , , , , , ,

Defensive Stocks Show No Panic Rotation (PEP, KO, BUD, TAP, KFT, CAG, CPB, HRL, MCD, MO, VGR, RAI, PG, CL, MRK, JNJ, NVO)

With the markets down so much today on the financial stock fallout after the Citi downgrade/concern and with oil stocks listing lower after the Exxon miss, we wanted to show a brief comparison of DEFENSIVE STOCKS versus the market today.  If the market does start to get shaky, many of these defensive stock names are where traders will look to hide their equity money.  That may be even more-so the case now that the fiscal year-end window dressing trade for mutual funds has played out.

If you look below the top defensive stocks, which are all trading lower today, are by and large not down as much as the broad market but they aren’t showing any massive defensive interest either.  Of the 30 DJIA components, only 3 are positive today and they are all technology related. 

DJIA            13,727.52 (-202.49/-1.45%)
S&P500      1,527.59  (-21.79/-1.41%)
NASDAQ    2,829.27  (-29.85/-1.04%)

PEP    $73.19    (-0.53/-0.72%)   
KO      $61.63    (-0.13/-0.21%)   
BUD   $50.95    (-0.33/-0.64%)   
TAP    $55.83    (-1.40/-2.45%)   
KFT    $32.98    (-0.43/-1.29%)   
CAG    $23.50    (-0.23/-0.97%)   
CPB    $36.51    (-0.47/-1.27%)   
HRL    $36.21    (-0.27/-0.74%)   
MCD   $59.29    (-0.46/-0.77%)   
MO      $72.63    (-0.30/-0.41%)   
VGR    $21.62    (-0.26/-1.19%)
RAI      $63.49    (-0.94/-1.46%)   
PG       $69.44    (-0.08/-0.12%)   
CL       $75.03    (-1.24/-1.63%)   
MRK    $57.93    (-0.33/-0.57%)   
JNJ      $64.91    (-0.26/-0.40%)   
NVO    $122.55   (-2.14/-1.72%)

So today may be a bad day and decliners may be greatly higher than advancers, but there is not any major fear going on even if the VIX is back over 21.0 right now. Of course that can change, but that isn’t the case so far.

Jon C. Ogg
November 1, 2007

Posted on: November 1, 2007 – 12:30 pm in Defensive Stocks, , , , , , , , , , , , , , , , ,

Defensive Stock Picks Better Than The Market (September 7, 2007)

We are frequently asked about how certain basket picks perform compared to the overall market.  It has been years since anyone has claimed their stocks should gain regardless of the market because most people have smartened up to that nonsense.  But "Defensive Stocks" do perform better in general on a relative basis in down markets.  That isn’t a guarantee and that isn’t an absolute, but at least they did today.

Out of the 30 DJIA components, only J&J was up on the day.  Out of the 17 defensive stocks we gave earlier this morning, 3 of the 17 closed up.  On average of the 17 defensive stocks, if you invested in each one equally the picks would have ‘only’ been down 0.85% out of the basket.  That is better than the DJIA, S&P 500, and NASDAQ. 

For whatever it is worth, it’s worth noting that ‘relative performance’ doesn’t necessarily pay bills if the market heads too far south.  Here is how the markets fared compared to the defensive stock picks:

                  CLOSE      CHANGE    PERCENT
DJIA         13113.38    -249.97     -1.87%
NASDAQ    2565.7      -48.62       -1.86%
S&P500    1453.55     -25.00       -1.69%

Tick     Close       Change   Percent
PEP     $67.98      $(0.58)    -0.85%
KO       $54.59      $(0.07)    -0.13%
BUD     $49.84      $0.14       0.28%
TAP      $89.24      $0.56        0.63%
KFT      $32.89      $(0.50)    -1.50%
CAG     $25.52      $(0.06)    -0.23%
CPB     $35.54      $(1.14)    -3.11%
HRL     $34.99      $(0.81)    -2.26%
MCD     $49.24      $(0.52)    -1.05%
MO        $67.39      $(0.88)    -1.29%
VGR     $22.98      $(0.09)    -0.39%
RAI       $63.77      $(0.36)    -0.56%
PG        $65.47      $(0.64)    -0.97%
CL        $65.43      $(0.57)    -0.86%
MRK     $49.57      $(0.90)    -1.78%
JNJ      $61.68      $0.02         0.04%
NVO     $113.00    $(0.47)     -0.40%

Jon C. Ogg
September 7, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: September 7, 2007 – 3:32 pm in Defensive Stocks, , , , , , , , , , , , , , , , ,

“Time To Go Defensive, Again?” (PEP, KO, BUD, TAP, KFT, CAG, CPB, HRL, MCD, MO, VGR, RAI, PG, CL, MRK, JNJ, NVO)

If you ever heard the old saying "Be careful what you wish for, you may get it!" it sure seems like we are there.  It also makes you wonder if it is time to go back into Defensive Stocks.  The defensive stock plays are where investors plunk their money when they are less optimistic but still want exposure to stocks.  The DJIA is down over 150 points on the day so far, yet some of these defensive stock plays are barely down. 

Today and this week is the perfect storm for what the stock market was hoping for to deliver a rate cut:

  • Job creations negative for the first time in four years
  • Alan Greenspan says this is similar to 1987 and 1998
  • Weak as could be auto sales
  • Weak home sales
  • Credit woes and delinquencies spilling over
  • mixed retail picture 

These are the ones you eat, drink, and smoke,and they tend to be around medicines and personal products. Here are the basics for defensive stock plays:

  • You have to drink. Coca-Cola (NYSE:KO) and Pepsi (NYSE:PEP) are usually a coin toss over performance versus relative value in the beverage plays.  Anheuser Busch (NYSE:BUD) is supposed to win because people drink more beer when they are miserable; or if you don’t mind crossing the northern border a tad you can always look at Molson Coors Brewing Company (NYSE:TAP). 
  • You have to eat.  Kraft (NYSE:KFT) maybe too tied to activists, Buffett, Phillip Morris, or whatever, but it’s monster play in the sector.  ConAgra (NYSE:CAG), a food giant that is fairly valued.  You can always look at Campbell Soup (NYSE:CPB) or even Spam-maker Hormel (NYSE:HRL).
  • McDonalds (NYSE:MCD) is deemed the best fast food play off the mid to lower income, as supposedly people will still eat out somewhere.
  • Smokers sometimes do rule.  Altria (NYSE:MO) is supposed to win since history has dictated that people don’t quit smoking when they are stressed out over job security and money.  Cramer had this as one of the TOP 2007 PICKS, but for different reasons.  You can always pick Vector Group (NYSE:VGR), or Reynolds American (NYSE:RAI) as well.
  • In personal products, Proctor & Gamble (NYSE:PG) and Colgate-Polmolive (NYSE:CL) tend to get into your pocketbook unless you stop shaving, washing hands, and brushing your teeth.  The choice of the two usually boils down to relative value and performance.
  • Go-to names in drug and medicine stocks are Merck (NYSE:MRK) and Johnson & Johnson (NYSE:JNJ).  A good runner up is Novo Nordisk (NYSE:NVO), even if it is and ADR lower in market cap and based in Denmark, as they are the major insulin play for diabetes treatments.

These are far from great exciting tech plays, but this is the strategy that traditional investors have used whenever it is time to go defensive.  As a reminder, if the stock market is going to really slide then almost everything falls with it.  Defensive stocks in theory are supposed to fall less and are the ones that traditional investors usually start tip-toeing back into first.

Jon C. Ogg
September 7, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: September 7, 2007 – 9:46 am in Defensive Stocks, , , , , , , , , , , , , , , , ,

Cramer Sticks With Tobacco & Sin Stocks (MO, RAI, VGR, UST, BUD)

Stock Tickers: MO, RAI, VGR, UST, BUD

On tonight’s MAD MONEY on CNBC, Jim Cramer came out very positive on Vector Group Ltd. (VGR-NYSE).  He noted that Carl Icahn is a big backer of the company and noted hat it has a monster yield and has hiked its dividends almost yearly.  In call-ins he also noted Altria (MO-NYSE) and Reynolds (RAI-NYSE) in regular tobacco, and even UST (UST-NYSE) in smokeless tobacco all as undervalued stocks.  As far as another sin name, he also noted Anheuser Busch (BUD-NYSE) positively in a call-in during the segment.

Jon C. Ogg
June 20, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in any of the companies he covers.

Posted on: June 20, 2007 – 5:20 pm in Cramer, Tobacco, , , , ,