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
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
Though cloud is the future of enterprise computing, a smooth transition of legacy applications and systems is critical for seamless business operations. IT professionals are eager to start leveraging the cost, scale and other benefits of cloud, but with massive investments already in place in existing infrastructure and a number of compliance and resource hurdles, it can be challenging to move to a cloud-based infrastructure.
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with lega...