Tobacco Stocks Struggles against Tighter Norms
The ShinesRooms.com Provides Stock Research onBritish American Tobacco plc and Star Scientific Inc.
New York City, New York -- Tobacco companies, like any other company, are susceptible to economic downturn. However, the impact is rather subdued due to the nature of their products. Apart from economic concerns, the industry is heavily regulated as well. Many countries have come up with tighter norms for cigarette packaging and statutory warnings to be displayed on the packets. British American Tobacco Plc (BTI) is expanding into high potential, emerging markets. On the other hand, Star Scientific Inc. (STSI) seems to be on the precarious ground.
Access our free reports onBritish American Tobacco plc and Star Scientific Inc..Traders can also connect to our Wall Street Trading Floor where our research desk and market pros are standing between 8:50 am to 4:15 pm ET at
British American Tobacco Plc has iconic brands like Pall Mall and Lucky Strike in its portfolio. The company is well positioned in the market to command premium pricing for its products, leading to better margins. British American Tobacco Plc reported 3 percent increase in its ‘Global Drive Brands’ sales volume. Its earnings per share are also expected to increase by 9 percent on year-over-year basis. Our free research report onBritish American Tobacco plccan be downloaded upon registration at
http://www.ShinesRooms.com/BTI022013.pdf
British American is diversifying itself beyond developed markets. The company is expanding in regions like Asia and Central America. The expansion is key to its survival as emerging markets generate the biggest chunk of cigarette demand globally. The company is also looking at new product developments. It is already in the electronic cigarette market. It consolidated its position by acquiring CN Creative Limited late last year. CN Creative develops electronic cigarette technology. Due to rising health concerns, electronic cigarettes have a bright future ahead. The latest acquisition will help British American in gaining meaningful chunk of the emerging market.
This tobacco stock is up 3 percent so far this year. The company has good prospects but at the very same time faces challenges as well. Impending tax increases in the EU are likely to hurt the company’s margins. Tobacco demand is also expected to remain soft on account of growing awareness and emergence of electronic cigarettes. At the very same time, British American Tobacco also offers 4 percent dividend yield and is an attractive income stock. The tobacco company also has solid operating margin, providing a safeguard for its dividend and stock price growth.
Star Scientific is amid a controversy nowadays. The company was accused of doctoring the outcome of its anatabine research and Human Thyroid Health Study. However, Star Scientific has denied all the allegations. The stock has been plummeting down since then. It lost 30 percent of its value so far this year. However, earlier this year, it received positive news about its Anatabloc medication.Star Scientific Inc.free research is available today at
http://www.ShinesRooms.com/STSI022013.pdf
Star Scientific has two main products in its portfolio, Anatabloc and CigRx. CigRx has good potential to grow as the health awareness among smokers increases. The product is a dietary supplement and helps to quit smoking. The main challenge about Star Scientific is its financial standing. With its recent dismal stock performance, the company has very little hope for any positive catalyst to arrive on the scene to push the price up. Meanwhile, it is struggling to clear its name from Johns Hopkins controversy.
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