Stephane
I think you are right about not seeing the ones again, I don't expect a lot of action until earnings are reported, and I hope that management has enough smarts to amortize all of the start up costs of "Rated", so there is no immediate effect on earnings for the acquisition.
Maybe we will see an earnings improvement, I would expect to see somewhere in the 3 - 4 cent range hopefully, anything above 4 will be a pleasant susprise.
The cigar addition seems like a good addition as it fits well geographically with the rest of their operations, but I have pretty much the same reservations about cigars and the durability of the cigar fad, though I am begining to lose some of those fears, but I still doubt that many women will continue to smoke them for long, and smoking in general doesn't seem to offer a great future, either for the smokers or the tabacco companies.
I can understand that LACI has an inside track on the buying end, but establishing a retail distribution system for their cigars could entail a lot of expense, as well as time. The fad is strong now and it seems to me it would be easy to sell cigars by direct mail if nothing else, or over the Internet. Establishing retail stores could well prove too expensive a proposition, I hope we see some announcements of plans for distribution soon. Realistic plans will go a long way toward making this believable.
Rod
Dream a little
Rod
Dream a little |
