@Banker
Die Rede vom FDA Menschen war am Freitag, den 18.01.2018. Daher meinte ich keine "old news". Und: Seine Ausführungen hatten eine neue Qualität: (innerhalb der ### ...### aus SSD)
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The FDA warned that it could exercise its power to completely halt the sale of e-cigarettes, effectively taking products off the shelves until industry players "successfully traverse the regulatory process (FDA commissioner Gottlieb):
Altria's $12.8 billion investment in JUUL Labs is a (major) sunk cost that still seems unlikely to threaten the firm's dividend. Thanks to the company's excellent financial health prior to this deal, plus the substantial cash flow it continues generating from tobacco sales, Altria appears to have what it takes to manage through a potential blow like this.
However, management's credibility certainly takes a ding, and the firm no longer has much margin for error should trends significantly change for the worse in its core tobacco business.
Ultimately, this latest regulatory development is a clear negative that threatens an important future growth driver Altria was banking on. But perhaps more importantly, it suggests the FDA might continue taking a more aggressive stance towards manufacturers of tobacco and reduced-risk products alike.
Despite its impressive long-term track record, Altria increasingly looks like an income investment that needs to be more closely monitored over the next few years. While there is no imminent threat to its business or dividend, some clouds are forming on the horizon.
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Es hagelt halt schlechte Nachrichten:
- viel zu viel für JUUL bezahlt, Schuldenstand sehr erhöht und daher:
- Rating downgrade
- und ganz kurz nach dem JUUL deal diese sehr, sehr harsche Ansage von der FDA
Die Rede vom FDA Menschen war am Freitag, den 18.01.2018. Daher meinte ich keine "old news". Und: Seine Ausführungen hatten eine neue Qualität: (innerhalb der ### ...### aus SSD)
#########
The FDA warned that it could exercise its power to completely halt the sale of e-cigarettes, effectively taking products off the shelves until industry players "successfully traverse the regulatory process (FDA commissioner Gottlieb):
Zitat:"I fear that the survey data that we’ll get for next year will show continued increases in youth use of e-cigarettes. We’ll be in the field between March and May with the 2019 National Youth Tobacco Survey. I’ll tell you this. If the youth use continues to rise, and we see significant increases in use in 2019, on top of the dramatic rise in 2018, the entire category will face an existential threat.
I find myself debating with tobacco makers and retailers the merits of selling fruity flavors in ways that remain easily accessible to kids. But if the epidemic continues to mount, I’m sure that the debate will change to one of whether these products should continue to be marketed at all without authorized pre-market tobacco applications. It could be “game over” for some these products until they can successfully traverse the regulatory process.
Altria's $12.8 billion investment in JUUL Labs is a (major) sunk cost that still seems unlikely to threaten the firm's dividend. Thanks to the company's excellent financial health prior to this deal, plus the substantial cash flow it continues generating from tobacco sales, Altria appears to have what it takes to manage through a potential blow like this.
However, management's credibility certainly takes a ding, and the firm no longer has much margin for error should trends significantly change for the worse in its core tobacco business.
Ultimately, this latest regulatory development is a clear negative that threatens an important future growth driver Altria was banking on. But perhaps more importantly, it suggests the FDA might continue taking a more aggressive stance towards manufacturers of tobacco and reduced-risk products alike.
Despite its impressive long-term track record, Altria increasingly looks like an income investment that needs to be more closely monitored over the next few years. While there is no imminent threat to its business or dividend, some clouds are forming on the horizon.
#######
Es hagelt halt schlechte Nachrichten:
- viel zu viel für JUUL bezahlt, Schuldenstand sehr erhöht und daher:
- Rating downgrade
- und ganz kurz nach dem JUUL deal diese sehr, sehr harsche Ansage von der FDA
