Vector Group Ltd (VGR)

[Tuff-Stuff]

<5 Major Buys From Billionaire Carl Icahn
November 21, 2011 | includes: ARII, EP, FDML, OSK, VGR

Vector Group Limited

Vector, the cigarette manufacturer, has a market cap of $1.39 billion and is currently trading at around $17.50, with a price to earnings ratio of 17.24. Its 52 week trading range has been between $15.37 and $19.28. It reported third quarter 2011 earnings of $289.00 million, a decrease from second quarter earnings of $291.18 million. Third quarter net income was $17.55 million a substantial decrease from second quarter net income of $30.30 million. It has quarterly revenue growth of 1.90%, no return on equity and pays a dividend with a yield of 9.20%.

One of Vector’s closest competitors is Lorillard Incorporated (LO), which has a market cap of $14.78 billion and is trading at around $109.50. It has a price to earnings ratio of 14.75, quarterly revenue growth of 3.70%, no return on equity and pays a dividend with a yield of 4.70%. Based on this data it is marginally outperforming Vector, although Vector pays a dividend with a far more attractive yield.

Carl Icahn holds 14,799,855 shares of Vector, buying the entire holding in the second quarter 2011. The average purchase price per share was $17.34. Based upon the last trading price of $17.55, he has made a return of 1.21%.

Vector’s cash position has improved, with the balance sheet showing $329.89 million in cash for the third quarter, an increase from $321.47 million in the second quarter. The net tangible assets have declined with -$174.18 million in the third quarter 2011 from -$157.58 million in the second quarter. Vector’s quarterly revenue growth of 1.90%, versus an industry average of 6.00%, and no return on equity versus an industry average of 57.10%, indicates that it is underperforming many of its competitors.

full @ http://seekingalpha.com/article/309355-5-major-buys-from-billionaire-carl-icahn?source=yahoo