Sunday, December 15, 2013

Rorirado of electronic cigarette top spot, corresponding to a diversified concern of FDA-regulated


To take the part of the investor , there is a charm irresistible menthol cigarettes selling U.S. tobacco giant Rorirado of (LO) in the " Newport " . U.S. Food and Drug Administration (FDA) in considering more stringent regulations on menthol cigarettes , menthol product 's despite the fact that at risk . Rorirado stock has been trading at a level higher than the U.S. tobacco and food giant Altria Group Inc. Reynolds American and (MO) the (RAI) for many years , subject to the movement of the FDA, in about a year and a half ago I was less than the two companies .

FDA will not bring a judgment over the menthol tobacco control enhanced unless it is or later , until 2014 , the stock price of Rorirado soared 24 percent in the three months . And about 15 times at the moment , price-to-earnings ratio is generally aligned with its competitors . Rebound of Rorirado stock 's trigger indirect regulatory risks the company faces. Impact on the sales of the company's products up to a concern with increased regulation by the FDA, Rorirado has taken steps toward diversification . Thereby increasing the possibility of scale while much smaller than competitors , resulting in a change of measures Rorirado stood out .

Rorirado has been working aggressively trying to get a foothold liquid containing the nicotine becomes steam in the " electronic cigarette " . With that it has acquired 100 million in the $ 25 million the Blue Ishigusu last year , the share of electronic cigarette was 50% in the United States .

Electronic cigarette is important for Rorirado is , this is because extending the lead away the competition in the growth rate . Sales of electronic cigarette in the 350% year-on-year in the July-September quarter ( third quarter ) , I accounted for 3.4% of the company's sales overall . 9.4% increase is Rorirado , '14 sales analysts expected Reynolds and Altria 1.2 % in both .

The claim skeptical orientation is not profitable yet to electronic cigarette , but a matter of course in the early stages of any product , Rorirado are working trying to Kakitateyo consumer interest . It will take the original electronic cigarette market , reaches the scale of about some predict . Bonnie Hazogu Mr. Wells Fargo , points out that there is a possibility that more than 10 years within the conventional cigarette consumption of electronic cigarette in the United States . I said that this sounds ambitious , but even growing at half the pace of the current , it's still amazing .

Rorirado Earlier this year , I have put the cigarette " light " non- menthol " Newport Gold " . In light of the strengths of the Newport brand , this is an opportunity to boost sales in the field of " light " of the industry's largest .

On the other hand , menthol cigarette Newport 's large cigarette brand the only sales volume is increasing . It is possible that the FDA to strengthen regulation menthol , but it is worth the risk to commit the taste of menthol Rorirado .

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