Welcome!

News Feed Item

Technical Analysis: Cigarette Stocks Still a Healthy Portfolio Choice

LONDON, January 16, 2013 /PRNewswire/ --

Companies mentioned in this release have been covered by our technical research team. These technical analyses are available for free at

http://www.stockcall.com/register

While much has been made over government efforts to dissuade the use of tobacco, several companies in the cigarettes industry have still managed to perform well over the last little while. The industry is currently dealing with a number of newly proposed and/or implemented regulatory changes around the globe, but looks well positioned to continue to grow.      

Packaging is one area where governments have been imposing their will of late. Australia now has regulations in place that require all cigarettes to be sold in the same packaging, except for the name and type of cigarette, and also requires that 75% of the front side of packaging be covered with graphic images. How this well affect cigarette sales remains to be seen, but other nations are certainly watching closely. The European Union's Health Commission has declared revisions to its Tobacco Products Directive, which if approved would usher in similar packaging laws. In response, Philip Morris International Inc.'s (1) (NYSE: PM) Vice President, Communications, Julie Soderlund, stated via press release (2) in mid-December 2012:

"PMI is pleased that the Commission has finally issued its proposed Tobacco Products Directive so that it now may be reviewed and debated in an open, transparent, objective and constructive manner by all concerned in the coming months." She said further down the release: "We trust that the hostility of some towards our industry will not blind them to the important economic, legal and societal issues that this proposed Directive raises. We believe that its numerous flaws need to be addressed to ensure that the EU implements a regulatory framework for tobacco products in Europe that is fair, science-based and effective in reducing the harm caused by smoking without imposing unnecessary burden on the economy. Europe deserves nothing less."  

Although smoking has declined in a number of countries, companies, like Altria Group Inc. (NYSE: MO), have still managed to turn in solid numbers due to innovative products and the ability to raise prices without significant backlash, among other things. For its most recent quarter, Altria saw revenue growth of 2.2%, and when adjusted to include one-time items, earnings were up 3.2%. Whilst higher cigarette prices on all its cigarette brands helped boost profit, debt-repurchase charge impacted the overall outcome by 44%. Our technical analysis on Altria is available at

http://www.StockCall.com/MO011613.pdf  

The top players in the cigarette industry, Altria Group, Lorillard Inc.(3) (NYSE: LO) and Reynolds American(4) (NYSE: RAI) have been seeing success with smokeless tobacco products. With traditional cigarette volumes on a decline, companies are adapting and trying to stay profitable. In 2012, Lorillard bought Blu e-cigs for $135 million. This acquisition brought in $14 million in revenue for Lorillard in its third quarter earnings report. The value of being proactive in the smokeless products segment has become key for Reynolds American has it tackles with dwindling cigarettes sales.      

The industry has also been receiving increased investor attention of late, as many industry players offer high dividends and this is a major long-term argument for investors.

Footer:

  1. Philip Morris International Technical Analysis [ http://www.StockCall.com/PM011613.pdf  ]  
  2. Source - Philip Morris International Comments on the European Commission's Proposed Revision of the Tobacco Products Directive (pmi.com - Media Center)
  3. Lorillard Inc. Technical Analysis [ http://www.StockCall.com/LO011613.pdf  ]  
  4. Reynolds American Technical Analysis [ http://www.StockCall.com/RAI011613.pdf  ]  

About StockCall.com

StockCall.com is a financial website where investors can have easy, precise and comprehensive research and opinions on stocks making the headlines. Sign up today to talk to our financial analyst at

http://www.stockcall.com  

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, shared the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
The idea of comparing data in motion (at the sensor level) to data at rest (in a Big Data server warehouse) with predictive analytics in the cloud is very appealing to the industrial IoT sector. The problem Big Data vendors have, however, is access to that data in motion at the sensor location. In his session at @ThingsExpo, Scott Allen, CMO of FreeWave, discussed how as IoT is increasingly adopted by industrial markets, there is going to be an increased demand for sensor data from the outermos...
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes how...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...