Universal Corp. just might be an interesting stock play.
I concur, interesting potential long-term play.
A brief look into the fundamentals: top line has been pretty flat last few years. Understandably so, but with a successful entry into the liq-nic market, this could change. Especially given the growth rate of the global
ecig mkt. Current P/E is below avg S&P avg.
In the meantime, dividend yield based on friday's close price is 3.5%. And they've been consistently increasing div every year since 06.
Quite thinly traded, so expect some volatilty.
From PRNewswire:
This new business will produce high quality, United States Pharmacopeia (USP) grade liquid nicotine in the United States using fully traceable and compliant tobaccos. .AmeriNic, Inc.
expects to begin production of liquid nicotine before the end of the calendar year.
George C. Freeman, III , Chairman, President and Chief Executive Officer of Universal Corporation , stated, "We continually evaluate opportunities to meet the evolving needs of our customers and our industry. .The electronic cigarette industry is developing rapidly, and as a leader in leaf tobacco sourcing and agronomic research, we are pleased to bring our expertise to this dynamic market.. We believe that the best source of liquid nicotine is tobacco and that AmeriNic, Inc. has the capability needed to build a supply chain to provide the highest quality product at a competitive price. AmeriNic, Inc. looks forward to being a reliable, high-quality supplier for this new and emerging market. This transaction is not expected to have a material impact on cash flows or operating results for the current fiscal year.".
