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Reynolds American, Inc. (RAI)

  • Oct. 10, 2014, 2:05 PM
    • There's more consumer staples names to add to the list of out-performers on the day with investors peeling off some tech and momentum favorites.
    • The partial list below represents stocks up at least 1% on the day with a dividend yield of over 2%.
    • Back in favor: AVP, KO, MO, RAI, BUD, PF, BGS, DPS, CPB, LO, DF.
  • Oct. 6, 2014, 8:15 AM
    • The International Tax and Investment Center plans to lobby politicians attending a World Health Organization meeting to consider an agreement on tobacco taxes, according to Financial Times.
    • The group, which is sponsored by major tobacco companies, says it wants a "balanced approach" to excise taxation issues.
    • The WHO global summit on tobacco takes place in Moscow later this month.
    • Related stocks: RAI, LO, MO, PM, BTI, OTCQX:ITYBY, OTCPK:ITYBF.
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  • Sep. 26, 2014, 9:50 AM
    • Lorillard (LO) trades more than 10% below the acquisition price that Reynolds American (RAI -0.2%) has offered up for the company in what some analysts think makes for an enticing short-term bet for investors.
    • "The market is mispricing the probability that the deal closes," says Morningstar analyst Philip Gorham.
    • The Lorillard trade isn't without some risk, shares could tumble as much 20% if a deal gets scuttled.
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  • Sep. 15, 2014, 1:59 PM
    • Electronic cigarettes companies have their eyes on Hollywood with product placement spots in movies seen as a way to boost recognition for e-cig brands.
    • Traditional tobacco sellers have been shut out by regulators from paid placement ads for over 20 years.
    • Vapor Corp. (VPCO -7.2%) might be a step ahead of its peers. The firm has Relativity Media CEO Ryan Kavanaugh on its board and already pays for a "viral" campaign with Relativity.
  • Sep. 4, 2014, 10:37 AM
    • Reynolds American (RAI +0.3%) plans to take its Zonnic nicotine gum national after testing the product in Iowa and Nebraska.
    • Zonnic will sell at a lower price than many nicotine replacement products.
    • Sales of nicotine-replacement products in the U.S. came in at just a shade under $1B last year.
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  • Sep. 4, 2014, 2:49 AM
    • After a German court last month ordered a Lorillard (NYSE:LO) subsidiary to stop selling its blu e-cigarettes as a result of another claim from Zippo, Lorillard has decided to take the lighter manufacturer to a U.K. High Court.
    • Zippo declares that it has been using the Blu brand name for its butane torch lighters since 2007, although Lorillard says the threats are unfounded and is now seeking damages for Zippo's conduct.
    • Blu e-cigarettes are currently being sold to Imperial Tobacco (OTCQX:ITYBY) as part of Lorillard's $27.4B merger with Reynolds American (NYSE:RAI).
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  • Sep. 2, 2014, 2:18 AM
    • Imperial Tobacco (OTCQX:ITYBY) has closed approximately $13B of loans to finance its acquisition of several brands and assets of Reynolds American (NYSE:RAI).
    • The financing covers the $7.1B acquisition of cigarette brands, Winston, Maverick, Kool, Salem and blu, which Reynolds wished to unload to clear the way for its merger with Lorillard (NYSE:LO).
    • As part of the purchase, Imperial will also take over Lorillard's national sales force, offices and production facilities.
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  • Aug. 29, 2014, 8:10 AM
    • Reynolds American (NYSE:RAI) and Lorillard (NYSE:LO) disclose that they received an additional request from the FTC in connection with the pending merger between the two tobacco giants.
    • The companies still expect the merger and the related divestiture of brands to Imperial Tobacco (OTCQX:ITYBY) to close in the first half of 2015.
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  • Aug. 26, 2014, 12:23 PM
  • Aug. 25, 2014, 12:15 PM
  • Aug. 8, 2014, 1:35 PM
  • Aug. 6, 2014, 10:00 AM
    • Tobacco stocks are higher today in what analysts are calling a defensive move by investors.
    • There's also been some stronger pricing trends on the lower-end of the cigarette market that has helped to boost the outlook on the group.
    • Gainers: Philip Morris (PM +2.2%), Reynolds American (RAI +1.6%), Vector Group (VGR +1.4%), and Altrai (MO +1.9%).
  • Jul. 29, 2014, 8:52 AM
    • Reynolds American (NYSE:RAI) reports cigarette shipments fell 8.3% Y/Y in Q2 - mark which was worse than the industry average of a 5.5% volume drop.
    • Though the Camel and Pall Mall brands made market share gains, overall Reynolds lost 10 bps of share to 26.5%.
    • The Vuse roll-out began during the quarter and by the end of the period over 21K retail outlets sold the e-cig product.
    • The company tightened its guidance to a range of $3.35-$3.45 vs. $3.30-$3.45 prior.
    • RAI -0.7% premarket
  • Jul. 29, 2014, 7:51 AM
    • Reynolds American (NYSE:RAI): Q2 EPS of $0.89 beats by $0.02.
    • Revenue of $2.16B (-0.9% Y/Y) misses by $30M.
    • Press Release
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  • Jul. 21, 2014, 4:12 AM
    • The R.J. Reynolds (NYSE:RAI) lawsuit awarding $23.6B in punitive damages to the widow of a longtime smoker who died of lung cancer is likely to be rejected on appeal or the award reduced substantially, Reuters reports.
    • The payment likely falls outside the boundaries for punitive damages that the U.S. Supreme Court has laid down in a series of cases.
    • Constitutional guarantees of due process do not usually allow punitive damages to exorbitantly exceed compensatory damages of the same case. The general guideline is a ratio of 10:1.
  • Jul. 20, 2014, 9:52 AM
    • Reynolds American's (NYSE:RAI) subsidiary, R.J. Reynolds, has been slammed with $23.6B in punitive damages and $16.8M in compensatory damages from a lawsuit filed by the widow of a longtime smoker who died of lung cancer.
    • The lawsuit was filed six years ago after a Florida Supreme Court ruling stated that smokers and their families need only prove that addiction and smoking caused their illnesses or deaths to be eligible for damage payments.
    • The record ruling was re-approved last year, making it easier for sick smokers and their survivors to sue tobacco companies, and triggered thousands of new court cases.
    • R.J. Reynolds VP and assistant general counsel J. Jeffery Raborn intends to fight the verdict, calling it grossly excessive and unconstitutional. "This verdict goes far beyond the realm of reasonableness and fairness, and is completely inconsistent with the evidence presented," says Raborn. "We plan to file post-trial motions with the trial court promptly, and are confident that the court will follow the law and not allow this runaway verdict to stand."
RAI vs. ETF Alternatives
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