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All right, here's the rundown on the new Altria (MO*), the value play...

It's stuck with the domestic U.S. market, where sales volumes are going lower, on higher taxes...  Last year, U.S. shipments declined by 5%.  It's stuck with higher regulations...  It's still got some litigation risk...  but boy, does it sell a lot of cigarettes...  and it's been able to take market share in an environment where most forms of cigarette advertising are blessedly illegal...

MO*'s share is a record 41%... a total testament to the company's unbelievable dominance.  It's the top cigarette brand.  It's slapping around that Joe Camel... in every state... and it is bigger than the next 10 brands combined.

This isn't a company with a lot of growth ahead of it, but it should have consistency... 

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I expect MO*'s strategy will be to cut costs, as it's lagged the industry in profit growth.  Its earnings before interest and taxes have grown at 4%... the industry at 9%... and that's in spite of its size and brand dominance.  The company is expected to cut costs by $700 million.  There should be some real upside here, if they can close the profit gap, and I'm betting they will.

MO* could also sell its stake in SAB Miller, and that would be a huge chunk of cash, but you know what?...  That would be pro-shareholder... but I don't want them to do that...  I want them to keep the stake in SAB Miller, and I'll tell you why... because, when you combine Miller with Molson, which is also Molson Coors Brewing Company (TAP), I think you could then try to advertise your way into dethroning the king... The King of Beers (i.e., Anheuser-Busch (BUD)... that's right, King Bud could be dead... long live King Miller!

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MO* - which hasn't been able to buy back stock for a host of reasons - may soon become the biggest buyer of its own stock out there...  maybe bigger than any company save Exxon Mobil (XOM)... as it used to be in the old days...  What a great buyback they had...

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The story for Philip Morris International (PM) looks easier, frankly.   They're selling cigarettes around the world... places like China, India, Bangladesh, Vietnam...  They represent 2.3 trillion packs of cigarettes...  These are all countries where PM has little to no presence, so the room for growth is tremendous.

And, even though PM will have zero operations in the U.S., it's still going to be included in the S&P 500.  That's a gift.  That's why, by the way, the stock's been going up all week, even in what turned out to be a crummy tape today...

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Before you make up your mind, how about some numbers...

MO* should give you a monster dividend... 5.2%.  I think it's going to go to 6.5%.  Value guys would kill for that...  Earnings...  8-10% growth.   UBS thinks that MO* can beat 13%.  I think they're pie-in-the-sky high...

Now keep in mind though that MO*'s growth (in earnings) is coming mainly from cost-cutting.  It's not going to be selling any more cigarettes... 

Through 2010, MO* may be buying back as much as 18% of the company.  This is good story... very defensive, very shareholder-friendly, very value-oriented.

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PM is going to have growth 10-12% a year... and I bet that's a conservative estimate, as its growth should increase as it moves into countries where it hasn't yet established the cancer delivery system...

PM should still have a pretty large and respectable 3.6% dividend yield, and I expect its buyback to be strong too.  It should buy back about 13% of its shares.

These companies are just cash machines!  They're ATMs with a little cancer thrown in!

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All right, look, I think both companies have roughly similar valuations, so the question is about you... it's not about the stocks...

Are you a value investor looking for income?  Buy MO*.

Are you looking for growth?  Buy PM. 

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The Bottom Line!:      For me, I run my charitable trust... where I just gave away about $470,000... and, as a diversified fund, that likes them both, I expect to keep both Altria (MO*) and Philip Morris International (PM) until, together, they reach a price of $100.  And then I'll come on the show and I'll tell you I've changed my price target, or I have sold all my stock, and we will have made a great amount of money.