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State AGs gang up on e-cigarette industry

Comments (14)
  • John Rhodes
    , contributor
    Comments (830) | Send Message
     
    Ultimately, this is great news for Big Tobacco. You have to invert to see why but it's perfectly true to me. This is very likely to increase restrictions, regulations, and gov't activity. Small, niche players will be hard pressed to understand and absorb this kind of scrutiny and pain, even with impressive growth and incredible profit margins. Big Tobacco will be able to navigate through the red tape and they'll be able to gobble up good companies at great prices because it's highly likely that this will be a catalyst for consolidation in this sub-niche.
    8 Aug, 02:15 PM Reply Like
  • Darren McCammon
    , contributor
    Comments (1270) | Send Message
     
    I'll go you one further. This is probably motivated by Big Tobacco lobbies. Like you said it stifles competition from smaller upstarts. Further, notice there's no qualification on whether the Ecig actually contains nicotine or not. They are going to try to pass legislation which groups non-nicotine Ecigs with the same restrictions as nicotine containing ones thereby helping to maintain their customers addictions. So the benefits are twofold for Big Tobacco stifle competition from smaller nicotine delivery rivals and paint non-nicotine alternatives with the same broad brush.
    8 Aug, 03:31 PM Reply Like
  • john812
    , contributor
    Comments (30) | Send Message
     
    E cigs are helping people quit smoking. The big tobacco are behind this.
    8 Aug, 04:32 PM Reply Like
  • Harry Polizzi
    , contributor
    Comments (376) | Send Message
     
    "The big tobacco are behind this."

     

    I disagree. This is, once again, the doings of the Health Nazis who can't stand to see people make their own decisions. They are aided and abetted by AG politicians who never saw a personal life control they didn't like.

     

    Next thing you'll hear from these two sets of Yahoos is: "Its for the children."

     

    Ayuh
    8 Aug, 04:53 PM Reply Like
  • Scenic Dr
    , contributor
    Comments (113) | Send Message
     
    Tobacco companies may or may not be behind this, but please...those AG's want to make sure they keep getting tax revenue from Big Tobacco. I mean come on...there are less than 10 years left on the Master Settlement Agreement. They have to do SOMETHING to replace that income or what will the poor states do????
    8 Aug, 06:46 PM Reply Like
  • Jerbear
    , contributor
    Comments (639) | Send Message
     
    Two things are certain.

     

    If the government is involved it will take an extraordinary amount of time and they will execute it poorly if at all.
    8 Aug, 08:59 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1077) | Send Message
     
    "This just in: State AGs rob ex-smokers of potentially life saving e-cigs. One ex-smoker went on record with Live At Action News 5, saying:

     

    " '...I feel like the people who are supposed to be protecting my family are forcing me to get cancer so someone can get rich. I don't want to die of lung cancer. I don't want my children to die of cancer. Why did they do this to my family? WHY?"

     

    "AGs X, Y and Z were not available for comment at this time. However, sources suggest that any potential career in politics is likely DOA due to widespread allegations of..."
    8 Aug, 10:53 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (2403) | Send Message
     
    Just keep paying the dividends, gentlemen.
    9 Aug, 01:54 PM Reply Like
  • crunchy2k
    , contributor
    Comment (1) | Send Message
     
    E-cigarettes are safe and appearing safer with each new study. And why not? All of the individual ingredients are FDA approved for long term inhalation including nicotine. And not all e-cigarettes contain nicotine. The child angle doesn't fly and there is evidence that it is just wrong. This is really about the Master Tobacco Settlement (NYSE:MTS) of 1998.

     

    The AGs of 48 states were involved in the 1998 MTS. The settlement was estimated to be $206 billion to be paid over a twenty-five year period and based on the number of cigarettes sold per year. The Heart, Lung, Cancer, et al. Associations were included in the settlement money. E-cigarettes are a growing market and cigarette sales have declined more than double of what was expected. Estimated budgets are going up in vapor.

     

    Many states sold tobacco bonds on the estimated revenue from the MTS.With the declining cigarette sales, these bonds are most likely going to default. Moodys has downgraded tobacco bonds to B2 level. New Jersey put out $4.8 million last year to keep their tobacco bonds from defaulting. The AGs are just trying to minimize what is going to be a multi-Billion Dollar mess for many states in very few years. They think by controlling e-cig sales they can minimize their states financial exposure.
    9 Aug, 08:30 PM Reply Like
  • Scenic Dr
    , contributor
    Comments (113) | Send Message
     
    Crunchy...you hit the nail straight on the head!
    9 Aug, 10:28 PM Reply Like
  • jobehro
    , contributor
    Comments (215) | Send Message
     
    Reading and analyzing the above it may be prudent to hold off buying shares for now while seeing where this policy making issue takes E-cigs from here on. Don't you all agree?
    14 Aug, 09:02 PM Reply Like
  • john812
    , contributor
    Comments (30) | Send Message
     
    I would sell your big tobacco.
    15 Aug, 10:44 AM Reply Like
  • 87ji
    , contributor
    Comments (34) | Send Message
     
    To me this is the perrfect example of creating barries to enter the industry and ultimatly this small e cig companyes are gona be bought by the big USA/UK ones, end of story.
    20 Aug, 10:02 AM Reply Like
  • jobehro
    , contributor
    Comments (215) | Send Message
     
    The plan is so obvious. Bring E-CIG Co.s as low as you can and buy them up for peanuts.
    That's how they got big (mergers and buy-outs).
    21 Aug, 10:41 PM Reply Like
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