Tobacco industry
Article Abstract:
Tobacco industry securities declined sharply in the 1st qtr 1996 but experts are predicting that the industry will have high earnings and prices for the next six months to one year and probably for several years beyond 1996. Tobacco industry expansion into new or developing foreign markets should offset and surpass the negative impact of Liggett's liability case settlement, the anti-tobacco furor that has caused pension funds to stop investing or withdraw from tobacco companies, and an increase of state government suits to recover Medicaid costs. Tobacco industry stocks are a good investment for those who are willing to risk litigation outcomes.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1996
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Tobacco industry
Article Abstract:
A favorable product mix and higher pricing allowed the tobacco industry to increase earnings about 14% in 1995, and this is expected to continue in 1996. Privatization and proximity to other former Soviet-bloc nations has made Poland the third-largest tobacco market in Europe. The investment community is also now less concerned about the industry's legal problems. These stocks will outperform the market in the next six to 12 months.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1996
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Comment about this article or add new information about this topic:
Tobacco industry
Article Abstract:
The pending decision in the Castano nicotine addiction class action suit will be significant to the industry. In other legal matters, Capital Cities/ABC has agreed to settle its case, and the public comment deadline for proposed FDA tobacco rules has been extended. The domestic market is declining, but international sales increase. These shares have earnings momentum, but are risky for conservative investors.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1995
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