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.
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