The Sizemore Investment Letter

I’ve been a big believer in vice investing—and particularly tobacco stock investing—for a long time.  I turned bearish on tobacco stocks late last year, but this was based purely on price.  In my view, tobacco stocks had simply gotten too expensive relative to other dividend-paying options—and I would reiterate that view today. But if ol’ [...]

Has Big Tobacco stumbled into a new growth market in electronic cigarettes? Well, sort of.  Use of e-cigarettes—which produced a smokeless water vapor infused with nicotine—is expected to more than double in 2013, which might ordinarily be good news for the major tobacco giants. Altria (NYSE:$MO), Reynolds American (NYSE:$RAI) and Lorillard (NYSE:$LO) are all active [...]

Earlier this year, I commented that semiconductor titan Intel (Nasdaq:$INTC) was my favorite tobacco stock. I said this tongue-in-cheek, of course.  I am aware that Intel designs and manufactures microprocessors, not cigarettes.  But my point was simply that slow-growth (or even no-growth) investments, such as tobacco stocks, can be wildly profitable under the right conditions: [...]

Almost exactly two years ago, I wrote a short piece on Hugh Hefner’s leveraged buyout of Playboy Enterprises and commented that the company was transitioning away from its adult media businesses and into licensing and brand management.  Essentially, founder Hugh Hefner wanted to turn his company into something like a Dolce and Gabbana, but with an [...]

The post The Playboy Leveraged Buyout, Two Years Later appeared first on Sizemore Insights.

Almost exactly two years ago, I wrote a short piece on Hugh Hefner’s leveraged buyout of Playboy Enterprises and commented that the company was transitioning away from its adult media businesses and into licensing and brand management.  Essentially, founder Hugh Hefner wanted to turn his company into something like a Dolce and Gabbana, but with an [...]

The post The Playboy Leveraged Buyout, Two Years Later appeared first on Sizemore Insights.

Southerners are a proud, prickly lot who, not that long ago, used to demand satisfaction for slights real or imagined with pistols at dawn. The executives at Beam Inc, (NYSE:$BEAM) might want to watch out because their decision to water down their premium Maker’s Mark has offended the sensibilities of Bourbon lovers in the South [...]

The post Watering Down the Whiskey: Bullish or Bearish for Beam? appeared first on Sizemore Insights.

Charles Sizemore was quoted in Karen Talley’s MarketWatch article: Gun Stocks May be Losing Their Firepower: There are reasons other than gun control to stay away from firearm stocks, some money managers say. “Today, gun stocks are definitely cheap, and they might make a fine short-term trade,” said Charles Sizemore, principal of Sizemore Capital. “But [...]

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Constellation Brands (NYSE:$STZ), the world’s largest publically-trading winery, took an absolute beating yesterday when the U.S. Department of Justice torpedoed the Grupo Modelo (OTC:$GPMCF) – Anheuser-Busch InBev (NYSE:$BUD) merger on anti-competitive grounds. Given the wide variety of alcoholic beverage choices, the government’s move seems a little absurd.  Yes, roughly 80% of all beer drunk in [...]

The post Whiskey and Beer Still Better Long-Term Bets than Wine appeared first on Sizemore Insights.

For the past year, it’s been a swinging-from-the-chandeliers party in booze stocks.  High-end alcohol distillers have kept investors buzzed in an otherwise sobering stretch. Diageo (NYSE: $DEO), the biggest and best diversified of the lot, is up 37% over the past 52 weeks.  But Pernod-Ricard (Pink:$PDRDY) and Beam, Inc. (NYSE:$BEAM) are both up more than [...]

The post A Hangover in Booze Stocks? appeared first on Sizemore Insights.

Yes, you read that correctly.  My favorite “tobacco stock” is Intel Corp (Nasdaq:$INTC). Lest you think I’ve lost my mind, I am aware that Intel does not sell or market cigarettes or other tobacco products. Intel is the world’s premier designer and manufacturer of computer processors. But while Intel is not a tobacco company, it [...]

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