Seeking Alpha

Tobacco firms have e-cig startups on their radar

  • Big tobacco (LO, RAI, MO) may snap up some more independent electronic cigarette players after Lorillard set the stage with a $100M investment in SkyCig.
  • The industry considers e-cigarettes an insurance policy against further regulations on traditional tobacco products while the cost of entry isn't that high for a group accustomed to spending billions on buybacks and dividends.
Comments (2)
  • Tobacco companies are starting to buy out these e-cigg and vape pen companies beacuse they are starting to lose a huge market share to this new techology. So as a backup plan if they cannot successfully lobby in Congress to get it banned, they need to enter into this new niche product. This is a good move as it lowers risk overall for the company.
    3 Oct 2013, 06:25 AM Reply Like
  • Agreed, I'd also like MO to start expanding it's nascent wine and beer business. Perhaps also acquire a casino company and we'd have the perfect 'sin' stock. Long MO.
    3 Oct 2013, 06:30 AM Reply Like
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