~Todd Sullivan of Value Plays~

Shareholders as of March 19 will receive 1 share of Phillip Morris International for each Altria share they hold on march 28, the spin date.

Guidance:

Altria (MO):
* 2008 full-year diluted earnings per share from continuing operations are projected to grow approximately 9% to 11% from an adjusted base of $1.50, excluding PMI.
* Long term total annual shareholder return of over 12% when combined with the dividend
* EPS growth in the range of 8% to 10%....

Phillip Morris International (PM):

* Full-year diluted EPS from continuing operations are projected to grow 12% to 14% from a 2007 pro-forma adjusted base of $2.78.
* Long term revenue growth, net of excise taxes, of 4% to 6%; shipment volume growth of 1% to 2%; operating income growth of 6% to 8%; earnings per share growth in the range of 10% to 12%
* Dividend policy anticipates a pay-out ratio of 65%. The initial annual dividend rate has been set at $1.85 per share....

Here is the real kicker. Altria's cost to produce 1000 cigarettes is $16.40. Talk about profit margin? This is 16% to 21% lower than the competition.