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Seeking Alpha subscribers were somewhat mixed in their responses to a recent Wall Street Breakfast survey on whether it is a good idea to invest in the tobacco sector in 2024.
31.2% of the 2,110 respondents said it was a good idea to invest in the sector, while 28.4% indicated that it was not. Meanwhile, 26.0% of the respondents did not offer an opinion due to their view that it was morally wrong to invest in the sector, and 14.4% of the respondents were in the “maybe” camp.
The tobacco sector broadly includes Philip Morris International (NYSE:PM), Altria Group (NYSE:MO), British American Tobacco (NYSE:BTI), Japan Tobacco (OTCPK:JAPAY) (OTCPK:JAPAF), Imperial Brands (OTCQX:IMBBY), RLX Technology (RLX), Vector Group (VGR), Universal Corp. (UVV), Turning Point Brands (TPB), and Ispire Technology (ISPR). ETFs with a significant exposure to tobacco stocks include AdvisorShares Vice ETF (VICE), iShares U.S. Consumer Staples ETF (IYK), and Cambria Cannabis ETF (TOKE).
Tobacco developments: Philip Morris International (PM) received a subpoena requesting information on Swedish Match North America’s compliance with sales of flavored ZYN pouches in D.C. As a result, online sales on Zyn.com were immediately suspended as part of an initial remedial response. Bank of America noted that online sales are only a small percentage of total revenue, but the larger risk is that the FDA considers the potential violation as part of its pending PMTA approval process. Elsewhere, the FDA issued marketing granted orders for four Altria (MO)-owned NJOY menthol-flavored e-cigarette products. NJOY ACE is the only pod-based e-cigarette with marketing approval. British American Tobacco’s (BTI) more popular Vuse Alto menthol product was denied last year, likely due to youth usage.