Seeking Alpha

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

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.
Comments (10)
  • buyitcheap
    , contributor
    Comments (1848) | Send Message
    I hope he and everyone that follows him sells. I can buy at lower prices.
    4 May 2012, 01:08 PM Reply Like
  • zbignue
    , contributor
    Comments (280) | Send Message
    Is this a positive or negative thing for present holders of "sin" stocks ?
    4 May 2012, 01:16 PM Reply Like
  • ThetaDecay
    , contributor
    Comments (107) | Send Message
    Depends on your time horizon.
    4 May 2012, 01:20 PM Reply Like
  • montanamark
    , contributor
    Comments (1434) | Send Message
    yield chasers have already pushed up MO - maybe too much
    4 May 2012, 01:33 PM Reply Like
  • worldnet1
    , contributor
    Comments (65) | Send Message
    Gimme the gains and dividends now. I'll worry about headwinds later
    4 May 2012, 03:21 PM Reply Like
  • bill merrill
    , contributor
    Comment (1) | Send Message
    if I had the answer to this one----just think how much I'd have!!!!
    4 May 2012, 03:30 PM Reply Like
  • boborjin
    , contributor
    Comment (1) | Send Message
    Nice ride so far!
    4 May 2012, 06:31 PM Reply Like
  • TaiPan
    , contributor
    Comments (478) | Send Message
    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
  • fleigel
    , contributor
    Comments (2) | Send Message
    I seriously doubt that the tobacco stocks will go up in smoke.
    6 May 2012, 09:26 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8150) | Send Message
    Their is class-action lawsuit risk.


    Also, tobacco collapsed along with everything else in 2008.
    27 May 2012, 08:45 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio: