SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (60531)3/17/2018 12:39:19 AM
From: Spekulatius   of 78802
 
Tobacco - I never owned them before but recently bought some IMBBY, but decided to sell again after some consideration. My biggest concern is the competition from Vapor e-cigarettes. These things really start to get traction as a less harmful and less smelly solution to obtaining a “hit”, Apparently the best experience is from Juuless product, which is an upstart that has gotten to almost 50% market share with what seems to be a superior product,

I think the e-cigs will perhaps replace the tobacco products quicker than thought and I don’t think the profit margins will remain the same. Since innovation is not the strength of most cigarette companies, I think the market shares could get reshuffled as well. I am out since I expect the market to be disrupted.

Come to think about it, there was one company that was in tobacco manufacturing and might be a really good short. In any case, while the tobacco companies look optically cheap, I think they will become value traps, due to replacement risk from e-cigs.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News