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Tobacco names trade lower, as voters in California decide on a potential $1-a-pack tax on...

Tobacco names trade lower, as voters in California decide on a potential $1-a-pack tax on cigarettes (Previous: I, II). Though a new tax would hit firms in much different ways, the high-profile battle is considered a trend-setting event in the overall war against Big Tobacco that affects all players. The industry spent $47M to try and defeat the bill, while supporters raised $12M - including $500K from NYC Mayor Michael Bloomberg. MO -0.6%, RAI -1.0%, LO -0.7%, PM -0.3%.
Comments (11)
  • PM should be shielded a little bit better than other names due to their worldwide exposure. Perhaps that is why it's share price has fallen the least.
    5 Jun 2012, 12:37 PM Reply Like
  • PM doesnt sell cigarettes in the US at all
    5 Jun 2012, 12:45 PM Reply Like
  • I was aware of that, hence my comment.
    5 Jun 2012, 12:48 PM Reply Like
  • An article in Google from one of the LA papers (Times) stated that only a SMALL portion if the 133 million derived will go to cancer research. The fund is controlled by a committee of 6 and I'll let you take it from there. California is so in debt, they might be better off using the money for garbage disposal including the committee which is more bureaucratic payroll.
    5 Jun 2012, 12:47 PM Reply Like
  • I live in CA and I voted against this measure on my absent-t ballot. I do not think a legal company such as MO, PM, LO etc should be targeted for higher taxes just because it is unhealthy for the body. Too much government intervention in our lives. Why not raise the tax on whiskey, beer, colas, etc. They are not healthy either, I hope CA votes this down big.
    5 Jun 2012, 01:41 PM Reply Like
  • California is the land of laws, it is ridiculous how narrow of a line you have to walk in that state. I would like to see an amendment that anytime congress of the u.s or any state for that matter passes a law they have to remove a law. Our code of laws is over 200,000 pages and growing!!!!!!!
    5 Jun 2012, 01:59 PM Reply Like
  • Does anyone know when the measure will pass/fail. I know they are voting on it today, but I am curious if we could see a pop in these names after hours if the pill doesn't pass and vise versa . Or if we would not see this movement until tomorrow. A 0.5% decline on avg for these names seems like the decision is not priced in yet.
    5 Jun 2012, 02:05 PM Reply Like
  • What happened to ALL those monies collected from the Master National Tobacco Settlement in 1998. I'm sure all that money was spent on curtailing smoking and smoking health. This is another political boondaggle. If smoking is that bad then make it illegal, oh I forgot they want the revenue...
    5 Jun 2012, 02:25 PM Reply Like
  • Remember, God gave man the ability to choose.We were given the choice to choose between Heaven and Hell(the biggie):Then the same ability to choose not to Smoke and Drink: Don't say we did not know it would harm and even kill. From childhood up we all have been taught Smoking and Drinking would eventually kill us. I have seen this first hand in my family; but I can assure you we never blamed the tobacco company. Only the greedy politicians in Federal, State and local wants to tax the hard working people who take charge of their lives.
    5 Jun 2012, 07:30 PM Reply Like
  • Just and old 84 year old Soldier who will just fade away Been there done that and the leaches and greedy people will keep wanting every one else to pay.
    5 Jun 2012, 07:37 PM Reply Like
  • If PM drops just a little more(75-78) I will back up the truck. Clifford-to you I raise my glass,light my pipe and thank you for your service to our country.
    5 Jun 2012, 10:17 PM Reply Like
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