Why would a 3rd company be so good?

You have two tobacco companies in one in order to hedge against weakness domestically or
over-seas. Let's say by some strange turn, CA passes some "you can't smoke in public" law.
MO would take a huge hit. People would still smoke, but in the mind of the public, how
could such a law be good for a tobacco company? Foreign money worth more than US money
gives the company a boost in profits. If for some reason foreign cigarette sales goes
down, you still have strong US sales. Also, foreign countries are much more smoke friendly
as a general rule.

I own it too, but I guess people are upset that they didn't split the company into three
parts instead of two (domestic and international tobacco). The PEG is also above 2 too
right now but I think it should be better off split up into two companies I think too.

If MO does not drop below $60, given the value of KFT, there is potential gain. So I
guess the answer is in the value of Phillip Morris alone, when all is said and
done....thanx James

Am not sure where my reply went....this system can be a bit confusing to use at times.

Consider what will happen to MO's stock upon spinoff, and there is your answer.

Am I missing something here? Shareholders of record on March 16 will receive .7 shares of
KFT, currently valued at about $34 per share. So....why would we not be buying MO now?
Something I do not understand here???