Pyxus International Inc (PYYX)

[SSEA]

I think if MO wanted to own these assets in some kind of vertical strategy that they probably had that opportunity when the Company was in the bankruptcy process. I think the reason they don't want it is because to run this business at scale, you have to serve a diversified customer base and MO doesn't want to be in the position of having to serve it's competition as customers in any part of the business and vice-versa.

I think the very simple situation is that this company is necessary. The big guys don't want to deal with farmers in asia any more than they want to speak to a house subcommittee on the dangers of e-cigarettes....

That means that PYYX is pretty solid with respect to customer relationships/support/receivables/etc. It's yet another reason the breakdown ratio of the enterprise valuation makes no sense of any kind whatsoever.