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Tobacco stocks are a different breed than other consumer stocks, argues Ronald Thomas as he...

  • Friday, May 4, 2012, 1:05 PM ET
    Tobacco stocks are a different breed than other consumer stocks, argues Ronald Thomas as he raises concerns on the current valuations in the sector that are widely-perceived as low. He maintains that the addictiveness of cigarettes and uniqueness of the industry means demand trends can take longer to play out - warning the perceived safety of names such as RAI, MO, and LO could mask long-term headwinds.
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This news story has 10 comments:

  •  
    I hope he and everyone that follows him sells. ...so I can buy at lower prices.
    4 May 2012, 01:08 PM Reply Like
  •  
    Is this a positive or negative thing for present holders of "sin" stocks ?
    4 May 2012, 01:16 PM Reply Like
  •  
    Depends on your time horizon.
    4 May 2012, 01:20 PM Reply Like
  •  
    yield chasers have already pushed up MO - maybe too much
    4 May 2012, 01:33 PM Reply Like
  •  
    Gimme the gains and dividends now. I'll worry about headwinds later
    4 May 2012, 03:21 PM Reply Like
  •  
    if I had the answer to this one----just think how much I'd have!!!!
    4 May 2012, 03:30 PM Reply Like
  •  
    Nice ride so far!
    4 May 2012, 06:31 PM Reply Like
  •  
    As Kenneth Galbraith said, "in the long run we'll all be dead." Give me the dividends and (so far) capital gains now, and I'll sell when the party ends.

    If the author is right, the stock is not going to collapse suddenly; more likely taper off then start a slow decline.

    If he's wrong, we have a great stock.
    4 May 2012, 09:59 PM Reply Like
  •  
    I seriously doubt that the tobacco stocks will go up in smoke.
    6 May 2012, 09:26 AM Reply Like
  •  
    Their is class-action lawsuit risk.

    Also, tobacco collapsed along with everything else in 2008.
    27 May 2012, 08:45 AM Reply Like
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