Reynolds American, Inc.NYSE
Reynolds' Cigarettes Are Good For You(r Portfolio)
Chris DeMuth Jr. • 33 Comments
Chris DeMuth Jr. • 33 Comments
Fri, Oct. 21, 12:40 PM
Fri, Oct. 21, 12:00 PM
Fri, Oct. 21, 9:18 AM
Fri, Oct. 21, 7:23 AM
- Reynolds American (NYSE:RAI) confirms it received a non-binding proposal from British American Tobacco (NYSEMKT:BTI) to buy out the ~58% of its common stock not held by the British tobacco giant.
- The company says its board of directors will evaluate the offer from British Tobacco and respond accordingly.
- RAI +19.99% premarket to $56.52 (52-week high).
- Previously: BAT bids $47B to take Reynolds American ownership to 100% (Oct. 21)
- Source: Press Release
Fri, Oct. 21, 2:57 AM
- British American Tobacco (NYSEMKT:BTI) has offered to acquire the 58% in Reynolds American (NYSE:RAI) it doesn't own for $47B in cash and shares.
- BAT's proposal is worth $56.50 a share, or 20% above Reynold's closing price of $47.17 yesterday. BAT will pay $20B in cash and the rest in stock.
- The deal would bring together Newport, Kent and Pall Mall cigarettes under one umbrella to create the U.S. market leader. (PR)
Wed, Oct. 19, 2:16 PM
- Reynolds American (NYSE:RAI) is down 2.84% after missing Q3 estimates.
- During the company's earnings call, management lowered guidance for 2016 industry cigarette volume to -2.5%, from -2.0% prior. They also updated on the new $2.0B repurchase program, saying $75M of the allowance was tapped during the quarter.
- Notable decliners off the weak sector read include Altria Group (MO -1.3%), Philip Morris (PM -0.6%), and Japan Tobacco (OTCPK:JAPAY -0.9%).
- Reynolds earnings call transcript
- Previously: Reynolds American names Crew as new CEO; Cameron to become chairman (Oct. 19)
Wed, Oct. 19, 7:47 AM
- Reynolds American (NYSE:RAI) -2.1% premarket after missing Q3 earnings and revenue expectations, although EPS and revenue both rose from the year-ago period; revenue includes the recent acquisition of Lorillard.
- RAI narrows its guidance for FY 2016, seeing EPS of $2.27-$2.33 vs. prior outlook of $2.26-$2.34, vs. $2.31 analyst consensus estimate.
- RAI also names current President and COO Debra Crew as its new CEO, effective Jan. 1; current President and CEO Susan Cameron will become executive chairman on Jan. 1, and is expected to become non-executive chairman beginning in May 2017.
- Also, Joseph Fragnito, former president of the U.S. beverages and snack nuts business unit of Kraft Heinz, will join R.J. Reynolds Tobacco as president and chief commercial officer on Oct. 24.
Wed, Oct. 19, 7:01 AM
Tue, Oct. 18, 5:30 PM
Wed, Sep. 21, 9:02 AM
- Reynolds American (NYSE:RAI) is initiated by Jefferies with a Buy rating as the tobacco stock is lined up as its favored name in the sector.
- The investment firm runs through the typical Reynolds bull case talking points of cost savings, dividends, and vapor product growth in its note to clients.
- Wall Street scorecard on RAI: 1 Strong Buy, 8 Buys, 3 Holds, 0 Sells.
Fri, Sep. 16, 3:23 AM
- A month after assuming regulatory oversight over e-cigarettes, the FDA has cracked down on online sales by the industry, issuing 24 letters to websites for illegal sales to minors.
- The agency hasn't moved to ban online purchases, as many in the industry expected, but the letters show it's closely monitoring those outlets.
- Websites and stores will have 15 days to reply and explain how they plan to prevent future underage sales.
- Related tickers: MO, BTI, LO, PM, OTCQB:ECIG, OTCQB:VAPE, OTCPK:HPNN, OTCQB:MCIG, OTCQB:NTRR, OTCPK:VAPR, VPCO, RAI, OTC:AHII
Thu, Sep. 15, 9:23 AM
- Reynolds American (NYSE:RAI) announces the election of two new directors to the company's board of directors.
- Former Speaker of the House of Representatives John Boehner and Jean-Marc Levy from the IMD Business School in Lausanne, Switzerland are the two new appointees.
- Boehner is a well-known smoker and is considered a friendly to the tobacco industry.
- Source: Press Release
Tue, Sep. 13, 7:39 AM
- There's another bullish call from Wall Street on the tobacco sector this morning as Citi initiates coverage on both Reynolds American (NYSE:RAI) and Altria (NYSE:MO) with Buy ratings.
- Analyst Adam Spielman expects "robust" cigarette demand in the U.S. and points to the potential for dividend increases.
- Philip Morris International(NYSE:PM) is rated at Neutral by Citi. Shares of Philip Morris have outperformed the other two tobacco stocks on a YTD basis (+15% vs. +11% for MO and +4% for RAI).
- Previously: Philip Morris moves higher after Goldman Sachs turns positive (Sept. 12)
Fri, Sep. 9, 8:09 AM
- Big Tobacco is pouring money into California in an effort to defeat a proposal to increase the state tax on cigarettes to $2.87 per pack.
- Opponents of the tax increase have raised over $35M to double the $17M generated by supporters of the tax.
- Analysts believe the vote in California is crucial with other states likely to watch the outcome very closely and some global implications in play as well.
- Proposition 56 language: "Increases cigarette tax by $2.00 per pack, with equivalent increase on other tobacco products and electronic cigarettes containing nicotine."
- Related tobacco industry stocks: PM, MO, VGR, RAI, OTCQX:ITYBF, BTI, OTCQB:ECIG, OTCQB:VAPE, OTCPK:HPNN, OTCQB:MCIG, OTCQB:NTRR, OTCPK:VAPR, OTC:AHII.
Tue, Sep. 6, 12:03 PM
- Efforts in Europe to convince money managers to skip tobacco stocks have fallen flat, according to Reuters. Only French insurance giant Axa sold off its position in tobacco companies on moral grounds.
- "We are firmly of the view that profits, cash and dividends from tobacco stocks have many years of strong growth ahead," says Woodford Investment Management's Stephen Lamacraft. The fund manager's view seems to be the majority opinion based off of recent investment returns in the sector.
- Related stocks: Phillip Morris International (NYSE:PM), Altria (NYSE:MO), Reynolds American (NYSE:RAI), British American Tobacco (NYSEMKT:BTI), Japan Tobacco (OTCPK:JAPAF, OTCPK:JAPAY), Imperial Brands (OTCQX:IMBBY, OTCQX:ITYBF).
Tue, Jul. 26, 9:08 AM
- Reynolds American (NYSE:RAI) missed Q2 profit estimates after acquisition costs and lower cigarette volume weighed on results.
- Though the addition of Lorillard adding significant scale and market share, synergy benefits couldn't outpace the higher share count.
- Reynolds American sees full-year EPS of $2.26 to $2.34 vs. $2.35 consensus. The company also set a new $2B buyback program.
- Previously: Reynolds American misses by $0.03, misses on revenue (July 26)
- RAI -0.11% premarket to $52.25.