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Reynolds American, Inc. (RAI)

- NYSE
  • Fri, May 22, 7:11 PM
    • Philip Morris International (NYSE:PM) and British American Tobacco (NYSEMKT:BTI) are suing the British government over new rules starting next May that would require cigarettes to be sold in plain packages.
    • The tobacco industry is alarmed over a growing international move toward laws mandating that colorfully branded cigarette boxes be replaced with drab, uniform packages displaying prominent health warnings.
    • Separately, a U.S. appeals court today issued a split ruling on what kinds of statements tobacco companies must make in product warnings after a judge found them in violation of federal law nearly a decade ago.
    • Defendants included Altria (NYSE:MO), Reynolds American (NYSE:RAI) and Lorillard (NYSE:LO), which have battled with the Justice Department and public health advocates over the exact wording of the warning statements; today's ruling could further delay the date when any such warnings appear in public.
    | 18 Comments
  • Thu, May 21, 4:34 PM
    • Reynolds American (NYSE:RAI) and Lorillard (NYSE:LO) are expected to receive antitrust clearance for their planned merger as soon as next week, with few changes in the companies' settlement, WSJ reports.
    • RAI and LO have a financial interest in obtaining antitrust clearance and closing their deal by June 1: If they consummate the merger by then, they can save ~$240M LO would owe its shareholders in dividend payments if it remains a separate company after that date.
    • To address antitrust concerns, the companies already agreed to sell $7.1B in cigarette brands, including Winston, Salem and Kool, along with other assets to U.K.-based Imperial Tobacco.
    | 13 Comments
  • Thu, May 21, 9:30 AM
    • Alongside Goldman's list of 50 stocks appearing most as top holdings at hedge funds is its list of the 50 top shorts.
    • New additions this quarter: Baxter Intl (NYSE:BAX), UPS, Marriott (NASDAQ:MAR), NextEra (NYSE:NEE), Ford (NYSE:F), National Oilwell Varco (NYSE:NOV), McDonald's (NYSE:MCD), M&T Bank (NYSE:MTB), CenturyLink (NYSE:CTL), Amgen (NASDAQ:AMGN), Pioneer Natural (NYSE:PXD), Duke Energy (NYSE:DUK), Seagate (NASDAQ:STX), AbbVie (NYSE:ABBV), Cisco (NASDAQ:CSCO).
    • The full list (in order of $ value of short interest): AT&T (NYSE:T), Disney (NYSE:DIS), IBM, Verizon (NYSE:VZ), Intel (NASDAQ:INTC), Kinder Morgan (NYSE:KMI), Exxon (NYSE:XOM), Pfizer (NYSE:PFE), J&J (NYSE:JNJ), Deere (NYSE:DE), Caterpillar (NYSE:CAT), Exelon (NYSE:EXC), GE, Boeing (NYSE:BA), Halliburton (NYSE:HAL), Fox (NASDAQ:FOXA), Comcast (NASDAQ:CMCSA), UTX, Regeneron (NASDAQ:REGN), Merck (NYSE:MRK), salesforce.com (NYSE:CRM), AbbVie (ABBV), Conoco (NYSE:COP), Wal-Mart (NYSE:WMT), Eli Lilly (NYSE:LLY), Celgene (NASDAQ:CELG), Schlumberger (NYSE:SLB), AutoZone (NYSE:AZO), Wells Fargo (NYSE:WFC), Emerson (NYSE:EMR), McDonald's (MCD), Reynolds (NYSE:RAI), Target (NYSE:TGT), Accenture (NYSE:ACN), Coca-Cola (NYSE:KO).
    | 70 Comments
  • Thu, May 7, 6:04 PM
    | 2 Comments
  • Fri, Apr. 17, 8:27 AM
    • E-cigarettes are catching on with teenagers, according to a new data read.
    • While usage of traditional cigarettes by high school students has declined, e-cigarette demand has increased significantly.
    • 13% of all high school students used e-cigs last year to top the rate they used traditional cigarettes for the first time.
    • The FDA is still working out how it will treat the e-cigarette category.
    • Related stocks: MO, BTI, LO, PM, OTCQB:ECIG, OTCQB:VAPE, OTCPK:HPNN, OTCQB:MCIG, OTCQB:NTRR, OTCPK:VAPR, RAI, OTC:AHII, OTCQX:ITYBY.
    | 6 Comments
  • Fri, Apr. 17, 7:30 AM
    • Reynolds American (NYSE:RAI) reports cigarette volume fell 2.4% to 13.9B in Q1 vs. +0.5% industry average.
    • Cigarette market share -50 bps to 26.1%.
    • Premium mix +30 bps to 58.7%.
    • SG&A expenses +23.73% Y/Y to $511M.
    • Operating margin rate increased 280 bps to 37.2%.
    • FY2015 Guidance: Adjusted EPS: $3.65 to $3.80.
    • RAI +1.70% premarket.
    | Comment!
  • Fri, Apr. 17, 7:01 AM
    • Reynolds American (NYSE:RAI): Q1 EPS of $0.86 beats by $0.06.
    • Revenue of $2.06B (+6.2% Y/Y) beats by $80M.
    • Press Release
    | Comment!
  • Thu, Apr. 16, 5:30 PM
  • Fri, Apr. 10, 10:22 AM
    • Lorillard (LO +2%) and Reynolds American (RAI +2.4%) break higher on renewed chatter the FTC will decide against a lawsuit to halt the merger between the companies.
    • Earlier today, Reynolds American announced it will host its earnings conference call on April 17 at which time more details on the merger and synergy estimates could be disclosed.
    • Lorilalrd trades at an all-time high, while Reynolds American is only a dollar and change from a 52-week top.
    | 5 Comments
  • Thu, Apr. 2, 5:50 PM
    • The WSJ reports the FTC is "considering possible settlement terms" that would allow Reynolds (NYSE:RAI) to go through with its $25B acquisition of Lorillard (NYSE:LO).
    • Some FTC staffers have reportedly raised objections to a deal, which would combine the country's #2 and #3 cigarette makers (trailing Altria). But "other key figures within the commission believe the better approach would be to approve the merger with a binding legal settlement that includes divestitures."
    • As it is, Reynolds/Lorillard have agreed to sell a slew of assets to Imperial Tobacco for $7.1B. The WSJ states it "isn't clear" if the FTC might want concessions beyond the Imperial deal.
    • Shares of both companies rallied in regular trading ahead of the report, amidst a meeting with the FTC: Reynolds rose 4.4%, and Lorillard rose 2.8%.
    | Comment!
  • Thu, Apr. 2, 1:10 PM
    • Shares of Reynolds American (RAI +3.7%) and Lorillard (LO +3%) trade higher with the company still meeting with the FTC.
    • Analysts now expect the deal to be approved by regulators after some reports earlier this week leaned in the opposite direction.
    | 2 Comments
  • Mon, Mar. 30, 2:31 AM
    • Following months of regulatory examination, Reynolds American (NYSE:RAI) and Lorillard (NYSE:LO) are expected to meet this week with members of the Federal Trade Commission ahead of a final decision by the agency on whether to allow the companies to merge.
    • When the two U.S. cigarette makers announced their $25B deal last July, they sought to address potential regulatory concerns about competition by selling $7.1B in brands and other assets to Imperial Tobacco (OTCQX:ITYBY).
    | 1 Comment
  • Mon, Mar. 23, 11:40 AM
    • Big Tobacco is pushing for tighter regulations on e-cigarettes in a move some say is a clever strategy to keep out smaller players, according to Reuters.
    • The push from established industry players include calls to regulate vape shops.
    • Larger tobacco companies will benefit with their own e-cig brands if independent shops have increased barriers to entry and large retail chains are forced to display the product category behind counters.
    • E-cigarette sales in the U.S. decelerated to 5% growth in Q4.
    • Related stocks: MO, BTI, LO, PM, OTCQB:ECIG, OTCQB:VAPE, OTCPK:HPNN, OTCQB:MCIG, OTCQB:NTRR, OTCPK:VAPR, RAI, OTC:AHII, OTCQX:ITYBY.
    | 15 Comments
  • Mon, Mar. 23, 8:09 AM
    • Cash is still king in the tobacco industry.
    • Despite a wave of worry over global plain-packaging laws on cigarettes, shares of tobacco companies continue to offer solid returns for shareholders due in part to vibrant free cash flow.
    • Pricing has also held up in the sector even with volume in decline.
    • In some regions taxes as a percentage of price has decreased which is a boost to profit margins in the sector.
    • Another factor in the industry is the "massive" barriers erected by regulators that have ended up to act a wide moat for some global companies.
    • Tobacco stocks: LO, PM, MO, VGR, RAI, OTCQX:ITYBY, BTI, OTCPK:BTAFF, OTC:BATMF, OTCPK:JAPAF, OTCPK:JAPAY.
    | 7 Comments
  • Tue, Mar. 17, 10:25 AM
    • Cowen Research notes the increase in the 10-year Treasury yield has been a factor with U.S. tobacco stocks.
    • Low interest rates have been an ongoing positive factor for the dividend-lush tobacco sector.
    • On watch: Reynolds American (RAI -0.9%), Lorillard (LO -0.5%), Altrai (MO -0.7%), Vector Group (VGR +0.6%).
    | 16 Comments
  • Fri, Mar. 13, 5:55 PM
    • Antitrust enforcers are asking detailed questions about business plans and leadership of a third company that plays a key role in Reynolds American’s (NYSE:RAI) proposed acquisition of Lorillard (NYSE:LO), WSJ reports.
    • RAI and LO have sought to head off antitrust concerns by selling $7.1B in cigarette brands and other assets to U.K.-based Imperial Tobacco (OTCQX:ITYBY, OTCPK:ITYBF); the intent was to give Imperial a significant U.S. presence that could replace market competition previously provided by LO.
    • The FTC’s review of the merger, now in its latter stages, is said to be examining whether Imperial can become a significant player in the U.S. market if the merger is approved.
    | 9 Comments
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Company Description
Reynolds American Inc, through its subsidiaries, manufactures cigarettes and other tobacco products in the United States. The products brand include CAMEL, PALL MALL, WINSTON, among others.
Industry: Cigarettes
Country: United States