Wed, Feb. 25, 5:45 PM
- The three largest U.S. tobacco companies - Altria (NYSE:MO), Reynolds American (NYSE:RAI) and Lorillard (NYSE:LO) - agree to pay a combined $100M to settle hundreds of pending federal lawsuits in Florida, resolving some but not all of the legal uncertainty that has hung over the industry since a class-action lawsuit was brought by state residents in 1994.
- The settlement is far less than the $500M-plus the industry has had to pay winning plaintiffs in Florida over the past decade, but it leaves unresolved more than 3,000 cases pending in state courts, cases that are bigger and more potentially damaging.
- MO and RAI each will pay $42.5M to resolve ~400 federal cases, and LO will pay $15M.
Wed, Feb. 25, 9:56 AM| Comment!
Tue, Feb. 10, 9:27 AM
- Reynolds American (NYSE:RAI) reports cigarette volume fell 4.9% to 14.9B in Q4 vs. the -2.0% industry average.
- Cigarette market share -30 bps to 26.4%.
- Premium mix +80 bps to 58.4%.
- SG&A expenses +91% Y/Y to $703M (Vuse investment).
- Guidance from the company was in-line expectations going into the company's merger with Lorillard.
- RAI +1.5% premarket.
Tue, Feb. 10, 7:13 AM
Mon, Feb. 9, 5:30 PM
Wed, Jan. 28, 9:44 AM
- Shareholders with Reynolds American (RAI +1.5%) have approved an issuance of shares in connection with the company's acquisition of Lorillard (LO +0.8%).
- The merger is still subject to regulatory approval.
- The company expects a closing in the first half of 2015.
- Reynolds American merger update (.pdf)
Mon, Jan. 26, 2:26 AM
- Reynolds (NYSE:RAI) Chief Executive Susan Cameron is confident shareholders will approve the Reynolds American and Lorillard (NYSE:LO) deal this Wednesday, which will combines the two to create a more formidable rival against Marlboro (NYSE:MO).
- Shareholders of Imperial Tobacco (OTCQX:ITYBY) (the third party which is expected to buy several brands of Reynolds American as part of the deal) are also expected to approve the transaction because it turns Imperial into the No. 3 player in the U.S.
- However, the real test for the merger and the related divestiture of brands will come later this quarter, when the FTC weighs in on deal.
- Previously: The FTC asks Reynolds American and Lorillard for more info on merger (Aug. 29 2014)
Thu, Jan. 22, 4:08 AM
- Following in the footsteps of Australia, which two years ago enacted a law forcing cigarettes to be sold in plain olive green packaging, the British government will try to pass a law before May forcing tobacco firms to sell cigarettes in plain packs.
- Around 3.4% fewer cigarettes were sold in Australia in 2013, compared with 2012.
- The tobacco industry has fiercely resisted the new law, arguing that plain packs infringe on the intellectual property rights covering brands.
- TRelated stocks: LO, PM, MO, VGR, RAI, OTCQX:ITYBY, BTI
Wed, Jan. 14, 8:10 AM
- The tobacco industry will see a big tailwind this year as payments for buyouts of tobacco growers end.
- Where the extra funds will go is still unknown until Q4 reports start to roll in. Further investment in e-cig development or volume/pricing actions are possibilities.
- Morgan Stanley sees an earnings boost of up to 5% due to the development, but is cautious on the "effectively priced" sector.
- Major tobacco stocks: LO, PM, MO, VGR, RAI, OTCQX:ITYBY, BTI.
Dec. 15, 2014, 7:44 AM| 1 Comment
Dec. 11, 2014, 10:38 AM
- RBC Capital Markets picks Reynolds American (RAI) as its top tobacco stock for 2015.
- Though some regulatory hurdles remain to be cleared with the Lorillard (LO +0.8%) merger, the investment firm thinks the combined company will provide immediate value for shareholders.
- The last word from Reynolds was that it expected the merger to close in the first half of 2015.
Dec. 4, 2014, 5:17 PM
- Reynolds American (NYSE:RAI) announces Andrew Gilchrist has been promoted to the CFO position.
- The exec will replace Thomas Adams on March 15, 2015.
- In addition, the company says it added Ricardo Oberlander to its board.
- Oberlander is also a board member of a British American Tobacco subsidiary in Brazil.
Nov. 25, 2014, 3:54 AM
- China is considering a broad ban on smoking, including tobacco advertising, smoking in public places, prohibiting vending machine sales of cigarettes and cutting smoking scenes in film and TV.
- Up more than 10% from the year before, the country’s tobacco industry generated nearly 956B yuan ($155.6B) in taxes and profits in 2013.
- China is home to more than 300M smokers.
- Tobacco stocks: LO, PM, MO, VGR, RAI, OTCQX:ITYBY, BTI
Nov. 21, 2014, 7:48 AM| 1 Comment
Nov. 17, 2014, 4:01 PM| 1 Comment
Nov. 13, 2014, 2:56 PM
- Teenagers are sampling electronic cigarettes at a higher rate, according to a study by the CDC.
- The number of high school student who tried an e-cig over the last 30 days was 4.5% vs. 2.8% a year ago.
- 12% of all high school students say they have tried the product.
- The CDC notes the impact of e-cigs use on public health remains uncertain.
- Related stocks: MO, BTI, LO, PM, OTCQB:ECIG, OTCQB:VAPE, OTCPK:HPNN, OTCQB:MCIG, OTCQB:NTRR, OTCPK:VAPR, RAI, OTCQB:AHII.
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