As of Tuesday, you'll have to cross a border to buy a clove. The U.S. Food and Drug Administration's ban on flavored cigarettes went into effect and prohibits the sale of candy and fruit-flavored cigarettes. Authorized under the Family Smoking Prevention and Tobacco Control Act, the measure is intended to reduce the number of children who take up the habit.

Under the new ban, cigarettes that include "an artificial or natural flavor (other than menthol) or an herb or spice" cannot be sold in the United States. The long, but not exhaustive list of flavors, consists of strawberry, grape, orange, clove, cinnamon, pineapple, vanilla, coconut, licorice, cocoa, chocolate, cherry and coffee.

Continue reading Flavored cigarettes off the shelves

Flavored cigarettes off the shelves originally appeared on BloggingStocks on Wed, 23 Sep 2009 11:00:00 EST. Please see our terms for use of feeds.

"Income investors have to be very careful when searching for yield; many high-yielding stocks have turned in disastrous performances over the last year," cautions Chuck Carlson.

In his The DRIP Investor he adds, "That's what makes Philip Morris International (NYSE: PM) so attractive. The issues stands as as one in which investors can be confident of a steady dividend stream."

"The stock's current yield of 5% is especially attractive in this environment. And the dividend is taxed at the current preferential tax rate of just 15%, giving it an extra appeal relative to yields on fixed-income investments. Furthermore, the dividend is safe.

Continue reading Steady income from Philip Morris Int'l (PM)

Steady income from Philip Morris Int'l (PM) originally appeared on BloggingStocks on Fri, 05 Jun 2009 13:30:00 EST. Please see our terms for use of feeds.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"If John McCain wins, there's a greater likelihood the reduced-dividend and capital gains tax rate will be extended; in that case, I would favor a tax-advantaged fund such as the Eaton Vance Tax-Advantaged Dividend Income Fund(NYSE: EVT)," says Carla Pasternak in High Yield Investing.

"Eaton Vance Tax-Advantaged Dividend Income Fund has a solid tax-advantaged yield of more than 11%, of which the entire 2007 amount qualified for the reduced dividend tax rate of up to 15%.

"EVT focuses on strong dividend-growers and undervalued stocks with room to move. About 80% of the fund's holdings are in common stocks, with the rest of the portfolio in high-yielding preferred shares.

"Top holdings include oil giants Chevron and ConocoPhillips, as well as utilities like Edison International and dividend stalwart Philip Morris.

"The fund does have large exposure to the financial sector, as it accounts for about 20% of the portfolio. Due to the turmoil in the sector, EVT has seen its share price sink amid the credit crisis.

"While we can't be sure of when the crisis in the financial industry will subside, we can be assured this fund will benefit once things turn around. Meanwhile, investors are able to lock in a juicy double-digit yield.

"Investors seeking international exposure will also do well with this fund. Less than half (45%) of the fund is invested in the U.S. The remainder is spread evenly across Europe's major economies, including Germany, the U.K. and Finland.

"With a solid record for dividend growth, and selling at a steep discount of about -20% to the value of its underlying portfolio assets (meaning investors can pick up a dollar's worth of assets for only 80 cents), EVT might be attractive no matter who assumes the presidency.

"However, due to its tax-advantaged nature, having a Republican in the White House who favors keeping the current reduced-dividend tax would be a direct benefit to EVT investors."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

McCain stock: Stick with dividend growers originally appeared on BloggingStocks on Wed, 08 Oct 2008 17:05:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: Horace Mann, Sonus Networks and Mellanox were today's noteworthy initiations:

• Keefe Bruyette views Horace Mann (NYSE: HMN) as fairly valued and expects the competitive personal lines environment and deteriorating loss trends to act as strong headwinds. Shares were assumed with a Market Perform rating and $19 target.
  
• Thomas Weisel initiated Sonus Networks (NASDAQ: SONS) with a Market Weight rating and $3.50 target and believes management's expectation for 20% FY08 revenue growth is too aggressive.
  
• Susquehanna expects Mellanox (NASDAQ: MLNX) to benefit from the growing end markets for InfiniBand technology, and started shares with a Positive rating and $20 target.

OTHER INITIATIONS:

• Jefferies initiated McKesson (NYSE: MCK) with a Buy rating and $67 target.
  
• Philip Morris (NYSE: PM) was initiated at JP Morgan with an Overweight rating and $62 target, and added to the firm's Analyst Focus List.
  
• Baird started Pharmasset (NASDAQ: VRUS) with a Neutral rating and $21 target.
  

Analyst initiations: Horace Mann, Sonus Networks, Mellanox originally appeared on BloggingStocks on Wed, 16 Apr 2008 12:18:00 EST. Please see our terms for use of feeds.

Wall Street has speculated for some time that Altria's (NYSE: MO) international units will be spun-off from its domestic tobacco operations. The company's board believes that this will allow overseas operations to work without the baggage of regulations and lawsuits that the firm faces in the US.

According to The Wall Street Journal, "the separate entity, for example, would be exempt from US tobacco regulations and out of reach of American litigators. Importantly, its practices would no longer be constrained by American public opinion, paving the way for broad product experimentation." Put another way, the international operations will be able to make stronger, and perhaps more dangerous tobacco products, for large markets in Europe and Asia.

China will be a major target for the new public company to be called PMI. Other large markets the company will focus on include Indonesia and Pakistan.

The Altria international operations are about four times as large as those in the US. That alone may make the case for the company to be independent.

But, at the end of the day, the name of the game is selling much stronger cigarettes to people who want them in markets where regulation is lax. A good way to make money, but bad for the lungs.

Douglas A. McIntyre is an editor at 247wallst.com.

Altria's (MO) international unit to go out on its own originally appeared on BloggingStocks on Tue, 29 Jan 2008 08:15:00 EST. Please see our terms for use of feeds.

The Philip Morris USA unit of Altria Group (NYSE: MO) has decided to launch a smokeless product under the Marlboro name. It is a substantial risk.

Forty percent of the cigarettes sold (WSJ--subscription required) in the U.S. are Marlboros. The brand still evokes the tough cowboys who used to ride through its TV commercials. They rode the open American range, they were independent, and when they died of lung cancer, it was off-screen.

The new product can be used in offices and restaurants since it does not violate any of the smoking laws enacted in recent years. The product is not "wet" like certain other forms of smokeless tobacco. The users are not likely to spit juice all over the floor. Hitting a spitoon is a lost art.

But, smokeless tobacco can cause mouth and throat cancer, a particularly grim way to die.

Sucking nicotine in through a little pouch placed in the mouth would seem to erode the strong cowboy image. Of course, it will kill you all the same.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Altria unit goes smokeless originally appeared on BloggingStocks on Sat, 09 Jun 2007 10:10:00 EST. Please see our terms for use of feeds.

Note: The Daily Option Update is provided by Options Specialist Paul Foster of theflyonthewall.com.

Volatility Index S&P 500 Options-VIX down .14 to 10.28.

Amazon.com Inc. (NASDAQ:AMZN) - puts more active than calls as prices increase on purchase for Hedges. Amazon was trading up .71 to $38.38 around 2 p.m.. Amazon is expected to report EPS of $0.22 after the close. Lazard has a Hold rating on Amazon said on 1/31/07, "At current price levels, we believe the stock largely discounts strong growth, operating margins expansion, and improving free cash flow generation." Amazon call option volume of 43,043 contracts compares to put volume of 60,717 contracts. Amazon February option implied volatility of 58 is above its 26-week average of 39 according to Track Data, suggesting larger price fluctuations.

Neurochem Inc.'s (NASDAQ:NRMX) May option implied volatility keeps Climbing into Spring Risks. Neurochem issued a press release this morning indicating results from the first phase 3 study of NRMX's Alzhemed for the treatment of Alzheimer's disease is expected in the spring of 2007. Neurochem and partner Johnson & Johnson (NYSE:JNJ) have a PDUFA date for Kiacta for AA Amyloidosis on 4/16/07. Neurochem call option volume of 4,859 contracts compares to put volume of 5,129 contracts. Neurochem May call option implied volatility is at 152; puts are above 211 according to Track Data, indicating large price fluctuations. NRMX puts are expensive because Neurochem is difficult to borrow.

Option volume leaders today were: Altria Group Inc. (NYSE:MO), Google Inc. (NASDAQ:GOOG), Equity Office Properties Trust (NYSE:EOP), Bristol Meyers Squibb Co. (NYSE:BMY) and Sepracor Inc. (NASDAQ:SEPR).

Daily Option Update - February 1, 2007 originally appeared on BloggingStocks on Thu, 01 Feb 2007 16:14:00 EST. Please see our terms for use of feeds.

In line with the market maxim, "sell on the news," numerous financial media pundits have looked at tomorrow's earnings report from Altria Group (NYSE: MO), and its likely announcement to restructure, as a reason to sell.

Going counter to this, Tony Sagami, editor of The Asia Stock Alert, has just issued a "flash alert" telling his newsletter subscribers to buy in advance of the meeting.

He explains, "Altria is going to report its fourth quarter results on January 31. Sure, Altria will probably deliver a dynamite earnings report, but the stock-jumping news that I can't wait to hear are Altria's reorganization plans."

He notes that in addition to its Phillip Morris tobacco operations, Altria owns 87% of Kraft Foods and 29% of SABMiller, the second largest brewery in the world. He says, "I expect Altria to announce plans to spin-off those two units which should unleash billions of dollars of additional shareholder value."

Indeed, he feels, "It is this reorganization that makes now the time to buy Altria. He notes that Altria has wanted to split up its company for a while, but couldn't because of its tobacco lawsuits. Now, however, he notes, "Those litigation threats have largely been settled or dismissed, paving the path for Altria to reorganize into four separate divisions: Kraft, SABMiller, Philip Morris USA, and Philip Morris International."

Continue reading Advisor issues flash alert: Buy Altria ahead of tomorrow's earnings

Advisor issues flash alert: Buy Altria ahead of tomorrow's earnings originally appeared on BloggingStocks on Tue, 30 Jan 2007 13:53:00 EST. Please see our terms for use of feeds.

A federal judge today granted a group "class action" status in a suit that claims the cigarette companies fooled customers by calling some of their products "light." The argument is simple: The big tobacco companies were trying to sell "light" as safer. Smokers figured that it was OK to have a coffin nail if it was manufactured with less poison in it.

The suit seeks up to $200 billion in damages. If the plaintiffs can show that the tobacco companies planned the whole thing, the suit might take on racketeering status, which could triple damages.

Altria Group (NYSE: MO), the parent of Philip Morris, watched its stock drop almost 5% on the news, down to $78.64 as of 1:55 PM. The company has been trading near its 52-week high of $85.00.

With such a big suit, what isn't Altria's stock down more? Because suits filed in the past seeking damages for heath issues arising from smoking have not won big damages from the tobacco companies. Courts and juries have been reluctant to blame the cigarette manufacturers for people's bad habits, especially when each cigarette package says that smoking will kill you faster than stepping in front of an oncoming train.

While all large suits represent some risk, Wall Street is clearly not betting that there will be a full reversal of the way the judicial system views the liabilities involved in cigarette smoking. Tobacco may be a dirty business, but so far, the actions of cigarette companies are not viewed as criminal.

Douglas McIntyre is a partner at 24/7 Wall St.

Altria: Even 'light' smoke gets in your eyes originally appeared on BloggingStocks on Mon, 25 Sep 2006 13:59:00 EST. Please see our terms for use of feeds.