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Strategies & Market Trends : Roger's 1997 Short Picks
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To: wolfdog2 who wrote (3579)6/22/1997 6:37:00 PM
From: Roger A. Babb   of 9285
 
Wolf, I don't expect the tobacco companies are really going to be out $370 billion. The deal will be full of loopholes. For example, a major part of the money must be spent on anti-smoking compaigns. You can expect the tobacco companies to be back on TV with supposedly anti-smoking ads which really serve to create brand awareness, ie "Kids, Joe Camel and the Marlboro Man really want you not to smoke. Call 1-800-xxx for your free Joe Camel lunch box."

And every bit of research and marketing expenditures will be charged to the anti-smoking budget. Even the CEO's vacation. The whole thing is a scam and the tobacco companies will continue to make profits. In fact it is now in "the national interest" to insure the viability of the tobacco companies so they can continue the "payments".

If I sound skeptical over the deal, well that is an understatement.
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