Financial news site The Street reported in April on 5 sin stocks that investors should look at. In their article they cover a variety of sin stocks, along with compelling reasons for investors to take a closer look at each one. Since this article is now a few months old, it is worth reviewing to make sure all of the facts are still the same.
And from what I’ve seen of Jim Cramer on his TV show, it probably wouldn’t hurt the dude if he knocked back some booze and chilled a bit.
Here are some highlights from the article:
- Tobacco sin stock Philip Morris (PM) has a significant portfolio of cigarette brands, including a large percentage of overseas markets, which The Street explains is good because it protects the company from some of the costly impacts of litigation in the US.
- Two alcohol sin stocks: Molson Coors Brewing (TAP) and Diageo (DEO). At the time of the article, Molson Coors had just acquired a company that gave Molson Coors exposure to a large beer drinking market; and Diageo has an interesting strategy to tap into new markets without using its traditionally high-selling brands.
- Conflict sin stock General Dynamics (GD) sells most of its products to the US government. According to The Street, this gives the company the advantage of long-term commitments to build and maintain equipment for the US.
- Gambling sin stock Wynn Resorts (WYNN) is an interesting choice for investors primarily because of where its main revenue-earning properties are.
- The article also mentions the Vice Index (VICEX) as well, although it isn’t included in the ‘5 sin stocks’ mentioned in the title of the article.
Read the article at The Street: 5 Sin Stocks for 2012