Reynolds' Cigarettes Are Good For You(r Portfolio)
Chris DeMuth Jr. • 33 Comments
Chris DeMuth Jr. • 33 Comments
Thu, May 5, 11:55 AM
- The FDA announces that it will regulate all tobacco products, including electronic cigarettes and hookah tobacco.
- One of the new rules that will go into effect in 90 days is that retailers will not be allowed to sell e-cigs or hookah products to people under the age of 18.
- FDA press release
- Related stocks: MO, BTI, LO, PM, OTCQB:ECIG, OTCQB:VAPE, OTCPK:HPNN, OTCQB:MCIG, OTCQB:NTRR, OTCPK:VAPR, RAI, OTC:AHII, OTCPK:VTCQ, VPCO.
Thu, May 5, 2:59 AM
- California Governor Jerry Brown has signed a pack of bills that will raise the smoking age from 18 to 21, restrict the use of electronic cigarettes in public places and expand no-smoking areas at public schools.
- The new laws, which take effect June 9, are a big boost to a movement that is turning into the next major challenge for the $100B tobacco industry.
- Lawmakers in 10 other U.S. states are currently considering similar legislation.
- Related stocks: LO, PM, MO, VGR, RAI, OTCQX:ITYBF, OTCPK:JAPAY, BTI, OTCQB:ECIG, OTCQB:VAPE, OTCPK:HPNN, OTCQB:MCIG, OTCQB:NTRR, OTCPK:VAPR, VPCO, OTC:AHII
Tue, Apr. 26, 7:30 AM
- Reynolds American (NYSE:RAI) reports a 34% gain in volume with the addition of the Newport business included. Volume for both the Camel and Pall Mall brands were down during the quarter.
- Total retail market share improved 10 bps to 30.0% with Newport up to 14.0%.
- The company reaffirms prior guidance for 2016 EPS of $2.25 to $2.35. The integration of Newport manufacturing is on track for the middle part of the year.
- Reynolds American earnings release (.pdf)
- Now read The Preferred Way To Buy Reynolds American
Tue, Apr. 26, 7:15 AM
Mon, Apr. 25, 5:30 PM
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Mon, Mar. 21, 3:38 AM
- The U.S. Supreme Court will hear arguments today in a case that will test the limits of the Racketeer Influenced and Corrupt Organizations Act, a case that has serious implications for American corporate liability.
- More than two dozen European countries have sued RJR Nabisco, now R.J. Reynolds (NYSE:RAI) and Nabisco (NASDAQ:MDLZ), over an alleged international money laundering scheme that used drug money to buy tobacco.
- The question for the justices, who are generally skeptical of suits based on activities outside the U.S., is whether RICO applies to conduct abroad.
Tue, Mar. 15, 2:17 PM
- The introduction of new tobacco products isn't taking away from sales of traditional cigarettes as some expected, but appears to be having an "add-on effect" with consumers, according to Bloomberg Intelligence.
- The trend gives tobacco companies more leverage to innovate with cannibalization fears pulled back.
- Though overall smoking rates are in decline, there's some evidence that cheaper gas prices in the U.S. have bolstered demand with regular smokers.
- Big Tobacco vs. the broad market over the last year: Altria (NYSE:MO) +20%, Philip Morris International (NYSE:PM) +24%, Reynolds American (NYSE:RAI) +46%, S&P 500 Index -1.9%.
Fri, Mar. 11, 2:22 AM
- California lawmakers have voted to make the nation's most populous state the second to raise the smoking age from 18 to 21 as part of a sweeping package of measures cracking down on tobacco products and electronic cigarettes.
- "With California having such a huge population, it's going to be very impactful nationwide," said Cathy Callaway, associate director of state and local campaigns for the American Cancer Society.
- Hawaii became the first state to lift the smoking age limit to 21 in January.
- Related stocks: LO, PM, MO, VGR, RAI, OTCQX:ITYBY, OTCPK:JAPAY, BTI, OTCQB:ECIG, OTCQB:VAPE, OTCPK:HPNN, OTCQB:MCIG, OTCQB:NTRR, OTCPK:VAPR, VPCO, OTC:AHII
Thu, Mar. 10, 9:54 AM
- RBC Capital lifts its price targets on two consumer staples heavyweights.
- Coca-Cola (KO +0.6%) is assigned a fresh of $51. KO is +4.5% YTD to $44.90. Shares yield 3.11%.
- Reynolds American (RAI +1.4%) earns a PT of $57. RAI is +12.8% YTD to $52.14. Shares yield 3.22%.
- There's been some debate that the run of consumer staples stocks is poised to end, but SA contributor Daryl Montgomery argues the sector is still a safe play on a technical view.
- Earlier this week, Evercore ISI's Rick Ross also came in positive on the sector (CNBC video).
- "You probably can't do much better than owning the staples on this breakout from a multiyear trading range ... against the backdrop of a world where yields are extremely low,"said Ross
- Related stocks: PM, PG, PEP, CL, ADM, KMB, STZ, DPS, SJM, HRL, CHD, TSN, HSY, CPB, [[BF.]], BF.B.
- Related ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC.
Mon, Mar. 7, 9:29 AM
- CNBC reports there are "no talks" between British American Tobacco (NYSEMKT:BTI) and Reynolds American (NYSE:RAI).
- Shares of RAI are now flat in premarket trading after being up 2.4% earlier amid buzz in London over a potential deal.
- Previously: Reynolds American on watch with report of BAT interest (Mar. 07 2016)
Mon, Mar. 7, 8:28 AM
- London newspapers speculated over the weekend that British American Tobacco (NYSEMKT:BTI) may be mulling over a bid to buy out the 58% of Reynolds American (NYSE:RAI) it doesn't own.
- The tobacco giant added Centerview Partners to its advisory team in a move that could tip off a M&A play. Centerview was pivotal in a prior deal between BAT, Reynolds, and Lorillard.
- Shares of Reynolds American are up 1.90% premarket to $52.68. BTI is higher in London trading amid a broad market decline.
Sat, Feb. 27, 10:36 AM
- Investors continue to take refuge in consumer staples stocks in a strategy that tips off defensive positioning and accounts for some positive macroeconomic factors that are underpinning volume growth in the sector.
- Consumer staples stocks trading right at their 52-week high include Campbell Soup (NYSE:CPB), Kimberly-Clark (NYSE:KMB), General Mills (NYSE:GIS), Reynolds American (NYSE:RAI), Altria (NYSE:MO), Philip Morris (NYSE:PM), Church & Dwight (NYSE:CHD), Coca-Cola (NYSE:KO), Tyson Foods (NYSE:TSN), Sanderson Farms (NASDAQ:SAFM), B&G Foods (NYSE:BGS), and Cott Corporation (NYSE:COT).
- Even Procter & Gamble (NYSE:PG) and Wal-Mart (NYSE:WMT), which acted as drags on consumer staples ETFs last year with their heavy weightings, are outperforming the S&P 500 Index this year.
- Some analysts think political year uncertainty and global ZIRP and NIRP question marks could keep demand for staples strong.
- Related ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC
- Analysis: Consumer Staples ETFs Are Looking More Attractive Than Ever (Feb. 16)
- Prediction time: Which consumer staples stock has the most upside in 2016?
Fri, Feb. 19, 9:10 AM
Thu, Feb. 11, 7:35 AM
- Reynolds American (NYSE:RAI) says it has significant momentum as it enters 2016 with strong Q4 earnings.
- Adjusted EPS was up 9.1% from last year as higher pricing and volume gains in key categories played in.
- Volume on R.J. Reynolds domestic brands increased 35% Y/Y to 20B with the addition of Newport. Santa Fe domestic volume was up 18% to 1.2B.
- The company holds 33.8% market share of the retail domestic market.
- Previously: Reynolds American misses by $0.02, beats on revenue (Feb. 11 2016)
Thu, Feb. 11, 7:12 AM
- Reynolds American (NYSE:RAI): Q4 EPS of $0.48 misses by $0.02.
- Revenue of $3.05B (+43.2% Y/Y) beats by $10M.
Wed, Feb. 10, 5:30 PM
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Reynolds American Inc. is a holding company, which manufactures and sells cigarettes in United States. The company operating segments include RJR Tobacco, American Snuff and Santa Fe. The RJR Tobacco segment consists of the primary operations of R. J. Reynolds Tobacco Company. The American Snuff... More
Sector: Consumer Goods
Country: United States
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