Altria Needs to "Grow" New Income Streams...All dollars quoted are in US dollars.
Altria’s 52-week high share price was US $74.39 in December 2017.
On October 16, 2018, Altria was trading in the $60.77 range rising to $65.37 on November 8th, 2018, enjoying a bump in share price from the Globe article discussing a possible equity deal with Aphria.
From November 8th to November 23rd(9.5 trading days) Altria’s stock price dropped to $53.72, a drop of $11.65. The stock is currently down $20.67 from its 52 week high. Not what you call stellar results for creating value for its shareholders during the last 12 months.
Altria generates the majority of their revenue from smokable products. It’s common knowledge that in North America cigarettes and cigars have been undergoing a decline reflected by reduced smoking rates.
I have no personal knowledge of any negotiations between Altria and Aphria. And I’m not going to speculate if there is a deal to be had. What I do know is that Altria needs to grow new income streams with innovative products if they wish to create future value for its shareholders. And if I know this so does Vic. Sometimes the best deals are the deals you don't make.
If I were managing Altria, I would want to cut the best deal I could, with the best available company, in what is becoming the fastest expanding sector in North America.
Altria it's your move. Check.