Vector Could Go Up in Smoke

Vector Group (VGR) manufactures and distributes tobacco products in the U.S. under a variety of brands. The company has underperformed competitor Altria Group (MO) by 10.3% year over year and by 5.8% over the past six months. Vector has a forward dividend yield of 9% and a current short interest of 9%, while the dividend yield for Altria is 5.7%, with only 1.1% of its float short.

While the performance of Vector has lagged that of Altria, it is still up 13% year over year, but the chart is beginning to show signs of technical exhaustion. For the last 18 months the stock has been moving higher in a narrowing range, forming a rising wedge pattern. Price range and the 50- and 200-day moving averages have compressed, causing the lines of support and resistance to tighten, which could be signaling an imminent and volatile break. It is likely, after the extended consolidation phase, any subsequent move will be sharp and deep....335 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.