|Bid||36.12 x 800|
|Ask||36.32 x 800|
|Day's Range||36.27 - 36.53|
|52 Week Range||30.67 - 55.77|
|Beta (3Y Monthly)||0.87|
|PE Ratio (TTM)||1.64|
|Forward Dividend & Yield||2.70 (7.78%)|
|1y Target Est||46.96|
Contrary to conventional wisdom, you don't need a hefty trust fund or deep pockets like mutual funds and other institutional players to start investing.
British American Tobacco said in a news release Wednesday that it expects global industry volume to be down by around 3.5 percent in 2019. Despite a guide for lower volume shipments, British American said it remains on track for constant currency revenue growth in the mid-to-upper half of its long-term guidance of 3-5 percent.
Shares in British American Tobacco slid on Wednesday as the producer of Dunhill and Lucky Strike reported it had lost cigarette market share for the first time in years alongside disappointing sales growth in its alternative cigarette products. The FTSE 100 company reported that its share of the cigarette market by volume was down 10 basis points in the year to date, while its guidance for first-half revenue growth from its “new category” products was less than 30 per cent, disappointing analysts. “With so much focus on performance in [reduced risk products], and BAT being a cigarette share taker consistently for years, we think the stock could be down today,” he said.
The warning highlighted the challenges dogging the tobacco industry as smokers, particularly in the United States, turn to less harmful alternatives such as e-cigarettes and vaping products. The maker of Lucky Strike and Dunhill cigarettes said it expects global industry volumes to fall around 3.5% this year, compared with its earlier estimate of a 3% drop. BAT said it would invest further in what it calls its "New Category" business and announced plans to consolidate the portfolio, which makes tobacco heating product glo and Vype e-cigarettes as well as snuff and nicotine pouches.
The maker of Lucky Strike and Dunhill cigarettes forecast global industry volumes to fall around 3.5% this year, with the U.S. expected to decline 4%-5%. Demand for cigarettes has been slowing, particularly in the United States, as smokers turn to alternatives such as e-cigarettes and vaping products, prompting companies to rapidly expand their non-cigarette products. BAT said it would invest further in what it calls its "New Category" business and announced plans to consolidate the portfolio, which makes tobacco heating product glo and Vype e-cigarettes as well as snuff and nicotine pouches.
Under FDA regulation of e-cigarettes that began in 2016, e-cigarettes, known by the agency as electronic nicotine delivery systems, or ENDS, that were already on the market had to apply for FDA approval to remain available after August 2021.
Since Friday, Altria Group Inc. (MO), Philip Morris International Inc. (PM), and British American Tobacco PLC (BTI) have all fallen 5.1%, 5.9%, and 5.7% respectively as of market close on Wednesday, May 29. And opened Thursday with very little change.
Why Tobacco Stocks Fell on May 28Nielsen reportOn May 28, CNBC reported that data collected by Nielsen indicated a decline of 6.9% in cigarette sales by value and an 11.2% decline by volume during the four weeks ended on May 18. The decrease in
Tobacco stocks slid Tuesday after new Nielsen data showed cigarette sales volumes declined 11.2% in the past month, according to Nielsen.
Brazil is suing Philip Morris International and British American Tobacco over the financial toll of smoking. The Brazilian attorney general's office is seeking reimbursement for costs over the past five years, as well as future costs, of treating patients with 26 tobacco-related diseases. Public health groups praised Brazil's lawsuit.
Brazil is suing the world's largest cigarette makers, British American Tobacco Plc and Philip Morris International, in a landmark case aimed at recovering the public health treatment costs of tobacco-related diseases over the last five years. The Brazilian solicitor general's office, known as the AGU, announced the lawsuit late on Tuesday against the two multinational companies and their Brazilian subsidiaries, who produce most of the cigarettes sold in the country. The suit seeks to recover the cost of treating patients for 26 illnesses related to smoking tobacco or coming into contact with cigarette smoke, the AGU said in a statement.
Altria, Juul and British American Tobacco — the largest U.S. cigarette and e-cigarette manufacturers — are supporting raising the smoking age to 21. Regulators are pressuring them to fix what they're calling an epidemic of teen vaping.
Battered by headwinds from changing consumer habits and a heavy-handed FDA, BTI is down. If the fundamentals check out, this could be a value buy for investors.
Stocks with juicy yields can lead to great cash flows for investors. Which of these tobacco giants is the dividend winner?
German shares led gains in Europe on Wednesday as robust earnings from the country's Siemens and Wirecard overshadowed mounting worries over a U.S.-China trade deal. Chinese Vice Premier Liu He will travel to Washington on Thursday for two days of trade talks, in a bid to avoid a sharp increase in tariffs on Chinese goods that U.S. President Donald Trump had threatened to impose over the weekend. "The fact that Chinese Vice-Premier Liu He is still expected to arrive in Washington to keep the talks going is probably the reason why this has not turned into an absolute meltdown," Elwin de Groot, head of macro strategy at Rabobank, said.
Investors betting on marijuana stocks got some disappointing news out of Canada last week. Statistics Canada reported that Canadian marijuana retail sales declined by 7% in February compared to January.Source: Shutterstock On the surface, that decline may seem troubling, but it's not actually as bad as it seems. There is plenty of demand for Canadian marijuana. Unfortunately, there is not nearly enough supply to meet that demand. As a result, Canadian producers are in high demand, a dynamic that bodes well for marijuana stocks. Consolidation AheadThe drop in Canadian retail sales in February underscores just how critical the marijuana supply issue is. Typically, as demand for a particular product grows naturally, supply grows alongside demand and the market stays balanced. In the case of marijuana, demand has and will not grow at a steady, natural pace. Canadian demand was constrained up until last year by a federal ban on recreational marijuana use. Now that that ban has been lifted, there is a boom in demand. Suppliers can't keep pace.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Vice Stocks to Spice Up Your Portfolio The situation in Canada is a potential preview of the problems the marijuana industry will face if marijuana is ultimately legalized in the U.S. as well. Marijuana producers are frantically trying to beef up their production, but they are facing an uphill battle. In addition to limited capacity, Canadian marijuana stocks have limited access to U.S. capital. Most banks are unwilling to deal with the headache of investing in companies running operations that are still technically illegal in the U.S. at a federal level.In a nutshell, there are dozens of small-time Canadian and U.S. marijuana companies putting their pedals to the medal to ramp up production. Unfortunately, companies with limited resources can only grow so fast organically. As a result, there has been a flurry of marijuana buyouts and partnerships. That trend will likely continue in the coming years.Given the current supply-constrained environment, the biggest buyers could end up dominating the market in the long-term. In addition, the biggest buyout targets could command a hefty premium given the limited supply. Likely Buyer: Canopy GrowthCanopy Growth (NYSE: CGC) has already been aggressively adding to its capacity. In late April, Canopy announced a $3.4 billion conditional buyout of U.S. marijuana producer Acreage Holdings (OTCMKTS:ACRGF). The deal is contingent upon U.S. federal marijuana legalization. Bank of America analyst Christopher Carey says investors can expect plenty more buyout deals ahead for marijuana stocks like Canopy."We think Canopy showed that there are many options for Canadian marijuana companies to create value, and with Canada supply chain constraints likely to sustain near-term, we see potential that more deals are announced, potentially in the US, in the coming months," Carey says.Canopy has $3 billion in cash on hand but only had to commit $300 million up-front for Acreage given the conditional nature of the deal. Canopy has become the leader in Canadian production. It will likely be aggressive in establishing a similar position in the U.S. market. CGC stock investors can expect Canopy to pursue similarly structured deals with other U.S. producers. If Canopy is aggressive, it can have its pick of the top U.S. producers, leaving competitors to pick up the scraps once marijuana is legalized in the U.S. Potential Seller: HexoIn addition to the best potential marijuana buyer, Hexo (NYSE: HEXO) could be the best buyout target. With a market cap of under $1.7 billion, Hexo is certainly large enough to make a difference without being too big to digest. Carey says Hexo is relatively low-risk as far as Canadian marijuana stocks go. HEXO stock should benefit from its five-year contract as the official supplier of the province of Quebec. It is also expanding its own capacity with smaller deals, including the recent $260 million acquisition of Newstrike Brands.There are two key reasons why Hexo stock stands out as the best potential buyout target. First, Carey says HEXO stock is a rare value among marijuana stocks."We think Hexo is the most attractively valued stock in our coverage group based on our valuation framework of EV/sales (near-term delivery) and DCF (long-term value creation)," Carey says.Carey says Hexo trades at a discounted valuation to its larger-cap peers due to its limited capacity for global expansion. However, this limited global growth trajectory is the second reason HEXO stock makes a great buyout target. If Canopy, Aurora Cannabis (NYSE: ACB) or even a U.S. tobacco company like British American Tobacco (NYSE: BTI) decides to make a big splash with a deal, they have the global presence to get the most value out of Hexo's limited operation. * 7 Energy Stocks to Buy to Light Up Your Portfolio Takeaway For Marijuana StocksThe Canadian sales drop highlights just how much of a mess the marijuana market is in these days. Too many suppliers have too little capacity and limited ability to grow organically. As a result, a wave of consolidation among marijuana stocks is inevitable. The long-term winners of this consolidation will be potential buyers like CGC stock and potential sellers like HEXO stock.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Energy Stocks to Buy to Light Up Your Portfolio * 10 Vice Stocks to Spice Up Your Portfolio * 7 of the Best ETFs to Buy for a Slowing Economy Compare Brokers The post 2 Marijuana Stocks to Buy Despite Declining Canadian Sales appeared first on InvestorPlace.
The FDA in March proposed limiting sales of fruity e-cigarette flavors to age-restricted stores to curb what it has labeled a teen vaping "epidemic." Reynolds says the plan is "overly broad" and the FDA should instead focus on Juul.
The FTSE 100 ended 0.4 percent lower and the more domestically-focused FTSE 250 inched down 0.1 percent. Shell shed 1.4 percent to a month low and BP gave up 2.1 percent, as crude prices weakened after U.S. oil inventories rose more-than-expected with output reaching a new record of 12.3 million barrels per day. As sterling rose to multi-week highs with lingering hopes of progress in cross-party Brexit talks and ahead of Bank of England interest rate meeting on Thursday, exporter companies bore the brunt as much of their revenue is earned in dollars.
The following are the top stories in the Financial Times. Reuters has not verified these stories and does not vouch for their accuracy. Headlines UK ad watchdog probes BAT over e-cigarette Instagram posts ...
Altria Down ~6% after Posting Disappointing Q1 EarningsFirst-quarter performance Altria Group (MO) posted its first-quarter earnings on April 25. For the quarter ended on March 31, the company reported adjusted EPS of $0.90, and revenues, net of