Vector Group also holds various interests in resorts, spas, and hotels; and a 50% interest in a residential brokerage company, as well as engages in the real estate business.
So if the tobacco business plays out in the next few years.The question is ,are we diversified enough and strong enough to make it without the tobacco ?
As for myself, I'm holding for now.
Thanking you for any and all thoughts on this.
I see they picked up quite a few shares in Strategic Hotels in the last month. It turns out they could have received a better deal by waiting, but I think in the long term it was a very smart move. Strategic ownes some of the most prime real estate in the world.
"Why would the tobacco "play out" over the next few years?"
Cost is going up ,people will smoke less or stop smoking.I think many will stop smoking .But before that happens many will be buying our off brands.
I'm still holding but hope VGR gets stronger in our other parts of business.
tobacco stocks will get hurt. They would be smart to really bump up their non tobacco businesses so that there would be only minor exposure. There is a chance that cigarette smoking could be completely banned.
there is no way cigarettes will ever be completely banned. the gov't both national and local derive way too much income from the industry. the amount of illegal activity that would take place around a total bann would make bootlegging look like child's play.
there is also no way they will derive income to challenge what they make from cigarettes
no, the tobacco is what pays for the other investments. Why would the tobacco "play out" over the next few years? I would worry much more about the real estate, particularly in high tax NY than the tobacco. I would guess if they dumped the real estate, they would be a profitable company.
Forget about the other interests of VGR. Without the discount tobacco business, there is nothing.
FDA: As I've said numerous times, we need FDA regulation for any chance of preps product success. The house is passed, and Uncle Ted said about 2 weeks ago he will get this through the Senate asap. Obama said he will sign it. After this, we'll see what happens.
BTW....earnings Friday or Monday so sit tight and collect the divi's.