viernes, 17 de abril de 2015

Are Tobacco Stocks Still a Good Investment? – 13 de Abril de 2015 – EEUU

I am skeptical about investing in the tobacco industry. As the masses become more aware and health conscious, the usage has steadily decreased. I think there is a case for investing in tobacco and should not be completely discounted. A small portfolio exposure would serve well for most dividend investors. Some companies such as PM have the extra dimension of currency pressure – which need to be considered by investors (the company has operations only outside US, but reports in US$…and with the strong US$, that puts a damper on the earnings). Considering the headwinds faced by the tobacco companies worldwide, it will not be surprising to see more M&A activity in the future. However, it is important for potential investors to keep in mind that the industry faces declining volumes, legislative actions and other roadblocks.

What are your thoughts on the industry? Do you agree with my take? Share your thoughts below.

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