Consumer: Tobacco 2007

David Adelman

First Team

David Adelman

Morgan Stanley

Second Team

波恩ie Herzog,Citi

Third Team

朱迪在香港,Goldman Sachs

Runner-Up

Christine Farkas,Merrill Lynch

David Adelman of Morgan Stanley makes it five straight years at No. 1 for being “simply head and shoulders above everyone else,” says one money manager. Adelman, 40, has maintained an overweight rating on Carolina Group — New York–based parent of cigarette manufacturer Lorillard — since the company’s initial public offering in 2002. He remains bullish, citing strong cash flow and high profit margins. For the 12 months ended mid-September, the stock was up 41.2 percent. During the same period the sector gained 6.0 percent. Clients credit Bonnie Herzog, in second for a fourth consecutive year, with “deep industry knowledge.” The Citi analyst continues to champion New York–based cigarette manufacturer Altria Group, which she first recommended in April 2002 and reiterated regularly since. Her current bullish stance is based on the belief that value will be unlocked if the company receives regulatory approval for a proposed tax-free spin-off of its Philip Morris International unit, announced in August. Judy Hong of Goldman Sachs advances from runner-up to third. Hong added Altria to her buy list in March after learning that the company was considering spinning off its Philip Morris International unit; she believed such a move would prompt the company to resume its share-buyback program. In August, after the stock had risen 9.0 percent and plans for a spin-off were formally announced, she downgraded to hold on valuation.