Reynolds American, Inc.

  • Will E-Cigarettes Destroy Big Tobacco?

    By Adrian Campos - August 11, 2013 | Tickers: MO, LO, RAI

    At first I was a non-believer. Cigarettes have been around for more than a hundred years and are an essential part of human culture, for good or bad. Can they disappear all of the sudden? Maybe not immediately. However, E- cigarettes could change the way people smoke and, consequently, the way big tobacco companies have so far obtained their income. Let's review this thread / opportunity from the basics: what more »

  • How to Profit Off of a New Trend

    By Dan Moskowitz - August 9, 2013 | Tickers: MO, LO, RAI

    Tobacco companies are facing more headwinds than ever before, including regulation, taxation, and litigation. The FDA is enforcing regulatory control and cigarette sales volume has declined. Smoking cigarettes also now comes with a social stigma.

    All of these headwinds would lead one to think that this industry should be avoided at all costs. In this case, however, many tobacco companies have been wise enough to realize that when there’s more »

  • This Tobacco Company Offers Great Value

    By Adrian Campos - August 5, 2013 | Tickers: BTI, PM, RAI

    Philip Morris International (NYSE: PM) had a tough second quarter, mainly due to adverse currency fluctuations. Gross revenue, after accounting for excise taxes, came in at $7.917 billion, missing the $8.17 billion consensus by a wide margin. But with almost 29% of global market share excluding the U.S. and China, and significant exposure to emerging economies where there is an increasing population of smokers, the owner of more »

  • Book Gains in Lorillard Now

    By Rupert Hargreaves - July 30, 2013 | Tickers: MO, LO, RAI

    It has finally happened. The FDA has finally started to seriously raise the issue of a full-on ban on menthol tobacco products. However, before it takes action, the administration has decided to purse more research and public comment on the issue. On July 23, the FDA issued what it called '"an advanced notice of proposed rule making," which typically indicates that the administration is considering regulation. In this case, it more »

  • These Stocks Are Expensive According to Several Metrics

    By Rupert Hargreaves - July 30, 2013 | Tickers: CL, RAI, HSY

    The market as a whole could be overvalued, or depending on who you listen to, the market is still undervalued. Whatever the case, there are lots of individual stocks on the market that appear overvalued based on their own historic valuations and in relation to their peers.

    Although it is difficult to decipher whether or not the market is overvalued, or indeed undervalued, it is possible to gauge to a more »

  • The FDA Presents Another Great Buying Opportunity

    By Marshall Hargrave - July 30, 2013 | Tickers: MO, LO, RAI

    All the major tobacco companies saw a nice pullback last week as renewed concerns surfaced surrounding the FDA and menthol cigarettes, with my personal favorite, Lorillard (NYSE: LO), down over 5.5%.

    <img alt="" src="http://media.ycharts.com/charts/ecb9321202d3bf987c7acb733a5e3d08.png" />

    Fellow contributor Robert Ciura notes that he would avoid both Reynolds American (NYSE: RAI) and Lorillard due to their exposure to the methanol brands, where Lorillard has the key menthol brand Newport, and Reynolds sells Salem. cigarettes.

    However more »

  • You Should Be Concerned With These 4 Post-Earnings Stocks

    By Brian Nichols - July 25, 2013 | Tickers: CAT, LLY, RAI, STX

    Earnings can change the outlook for a company, good or bad, and they can also validate an opinion that you already may have. In the case of these four companies, earnings on Wednesday showcased significant concerns, and you should be careful before buying.

    Strong Presence, What About the Future?

    Eli Lilly (NYSE: LLY) traded higher by more than 3% after significantly beating Q2 earnings expectations. The company posted a 6 more »

  • Slow and Steady Wins the Race in This Industry

    By Bob Ciura - July 25, 2013 | Tickers: MO, LO, RAI | Editor's Choice

    The tobacco industry is not a haven for growth investors, nor should it be. Consumers continue the trend toward healthier living, and the decline of smokers has put a lid on growth. That’s largely behind the sell-off in Altria Group (NYSE: MO) after releasing second quarter earnings.

    The market was clearly disappointed by the company’s 5% growth in adjusted diluted earnings per share, but this serves as yet more »

  • Tobacco Can Mean Big Returns, But Wait for a Better Entry

    By Matthew Frankel - July 22, 2013 | Tickers: MO, LO, PM, RAI

    The tobacco companies have always been excellent dividend payers, but after a rapid gain like the one just experienced in the market, it becomes more important to figure out whether or not your favorite dividend stocks are worth getting into. My “big three” of tobacco stocks, Altria Group (NYSE: MO), Lorillard (NYSE: LO), and Reynolds American (NYSE: RAI), for instance, have popped by around 8% in the past month alone more »

  • David Winters’ Wintergreen Advisors’ Top Stock Picks

    By Meena Krishnamsetty - July 22, 2013 | Tickers: CNQ, BEN, PM, RAI

    At Insider Monkey, we track quarterly 13F filings from hundreds of hedge funds, including David Winters’ Wintergreen Advisors, as part of our work developing investment strategies (we have found, for example, that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year).

    While the information in these filings is a bit old (the most recent ones are from the end more »

  • How to Play the Tobacco Industry

    By Piyush Arora - July 16, 2013 | Tickers: MO, PM, RAI

    I admire tobacco companies. Despite nasty looking warnings on tobacco products, consumers find a reason to consume these items. And despite their minimal marketing campaigns, these companies find loyal customers to retain their growth momentum. This ensures a stable top line and the rising population presents steady growth potential. But when it comes to hand picking tobacco stocks, which companies should make it to your list?

    Why not Philip Morris more »

  • Two Tobacco Companies Worth Owning

    By Lior Cohen - July 12, 2013 | Tickers: MO, LO, RAI

    The decline in number of smokers in the U.S hasn’t stopped leading tobacco companies to maintain their high profit margins. Furthermore, some companies such as Lorillard (NYSE: LO) were able to show growth in revenues as e-cigarette market continues to rise. Let’s take a closer look at two tobacco companies Lorillard and Reynolds American (NYSE: RAI) worth owning.

    Year to date, shares of several leading tobacco companies more »

  • Which Tobacco Company Offers the Best Returns?

    By Rupert Hargreaves - July 11, 2013 | Tickers: MO, LO, PM, RAI

    Tobacco companies are well known for their free cash flows, which allow them to return large amounts of cash to investors through stock repurchase programs and dividends. However, with each company providing equally impressive returns, which offers investors the most by way of cash returns?

    Altria (NYSE: MO) does not offer much in the way of stock repurchases but the company offers a dividend yield of around 5%. On the more »

  • Tobacco Stocks with Upside and Yield

    By Damon Churchwell - July 9, 2013 | Tickers: MO, BTI, LO, RAI

    Tobacco stocks are typically high dividend payers and report consistent earnings trends. Currently, with investors shifting to more aggressive stances and bidding up shares of growth companies, high-yielding equities have been left behind. In fact, the majority of dividend stocks appear to be trading below their 50-day moving averages, lagging the moderate increase in the S&P 500 average over the second quarter.

    Here are four of my favorites, starting more »

  • A Look at Cigarette Companies in a Declining Market

    By Damian Illia - July 9, 2013 | Tickers: MO, RAI

    Health habits and government regulation have negatively affected the tobacco industry. At the same time, new opportunities have been created for those who adapt. Let us take a look at what Reynolds American (NYSE: RAI), Lorillard (LO), and Altria Group (NYSE: MO) have been doing to keep a declining market profitable.

    Thank you for NOT smoking

    Reynolds reported improved earnings per share, but a drop on sales. Government regulation had more »

  • 3 Companies You Won't Want to Miss

    By Shweta Dubey - July 4, 2013 | Tickers: MO, LO, RAI

    According to Wells Fargo, the e-cigarette market in the U.S. will be $1 billion this year, and it will increase to $10 billion by 2017. This trend will be beneficial for the cigarette manufacturing companies, as these companies are facing headwinds from high tax rates, increasingly strict government rules and declining sales of traditional cigarettes. Tobacco companies are diverting their focus to e-cigarettes and increasing their marketing budgets for more »

  • Why You Should Include These Tobacco Companies in Your Portfolio

    By Victor Selva - July 1, 2013 | Tickers: MO, LO, RAI

    Although many believe that tobacco is a declining industry, there is still potential in emerging countries. Despite having some room left for growth, I am particularly interested in the substantial dividend yields that some tobacco companies like Altria (NYSE: MO), Lorillard (NYSE: LO), and Reynolds American (NYSE: RAI) offer. Let’s take a closer look at them in order to understand if they stand as good investment opportunities for the more »

  • Is There Still Time to Buy Into the Ultimate Defensive Portfolio?

    By Rupert Hargreaves - June 27, 2013 | Tickers: AWR, CSV, RAI, WMT

    Back in January, surrounded by uncertainty in the market, I put together an article called the ultimate defensive portfolio, highlighting four stocks that I believed would protect any investor against market tantrums and provide a decent return no matter what happened in the wider market.

    Nearly seven months on and the market has hit new all-times highs followed by extreme volatility and 300+ point moves to the downside. Despite all more »

  • Dividend Health in These Major Tobacco Stocks

    By Anthony Parsons - June 26, 2013 | Tickers: MO, LO, RAI

    This article will take a look at three high-dividend-paying tobacco stocks that are some of the biggest tobacco companies in the world. It will look at how safe I believe their dividends to be. Additionally, I will make a case that these companies can not only safely maintain their dividends, but that they also are poised to continue raising them.

    The three companies we will focus on today include Reynolds more »

  • Continue Buying the Smoking-Hot Cigarette Stocks

    By Mark Holder - June 26, 2013 | Tickers: MO, LO, RAI

    The cigarette stocks remain hot as high yields and steady growth have led to strong stock gains. Many an investor has overlooked the sector due to perceived negatives of the industry, but for an investor looking for yields and growth the sector should not be ignored.

    Right now the leading domestic cigarette stocks of Altria (NYSE: MO), Lorillard (NYSE: LO), and Reynolds America (NYSE: RAI) all maintain dividend yields of more »

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