Professional Research on Reynolds and Lorillard -- a Smoking Hot Quarter for Cigarettes Stocks

Source from:  CBS MarketWatch 07/28/2010

JOHANNESBURG, SOUTH AFRICA, Jul 27, 2010 (MARKETWIRE via COMTEX) -- www.wallstreetequityresearch.com allows shareholders to gain full understanding of the economic and market forces influencing the cigarettes industry, and offers free research on industry players Reynolds American Inc. Register today at www.wallstreetequityresearch.com to receive free research reports on these companies. Cigarette companies have been posting their second quarter earnings this month with mixed results. Industry wide cigarette volumes were down by 7.1%. However, cigarette prices have been increased across the board in order to offset the decrease in demand. Cigarette companies are engaged in an uphill battle against rising taxes, widespread health concerns, a possible menthol ban and increased public smoking ban. Even with an endless list of negatives impacting this industry, many players in this space like Reynolds American Inc. and Lorillard Inc. are still managing to post profits even if both of those companies saw their earnings slid a little for this quarter. Register today at http://wallstreetequityresearch.com/July272010ReynoldsAmericanInc.(RAI)270710.php to download the full report on Reynolds American Inc. www.wallstreetequityresearch.com is a specialized website where investors can have complete access to free reports on cigarettes industry; traders looking for analyst opinions on Reynolds American Inc., Lorillard Inc. and other players in the industry are welcomed to sign up for a free one year membership at http://www.wallstreetequityresearch.com/. Reynolds experienced a slide of over 9% in its profit for this quarter due to $55 million restructuring charges. On the other hand, the King of Menthol, which is still facing a potential ban on its menthol cigarettes, has seen an 8% drop in profits in the second quarter of 2010, but still managed to beat Wall Street estimates. While demand in Europe decreased due to high unemployment and economic distress, the exchange rate of Euros to Dollars swayed in favor of the U.S. based cigarette companies helping to achieve some positive revenues this quarter. Investors can have direct and free access to research on Lorillard Inc. today by signing up at http://wallstreetequityresearch.com/July272010LorillardInc.(LO)270710.php Cigarettes consumption fell 9.3 percent in 2009, five times more than expected, and is expected to decrease further in 2010. Companies appear to be using two strategies to cope with the reduced demand. Firstly, they are raising prices of their products, which appears to be working well so far. Nevertheless, this strategy would inevitably reach a point when it starts contributing to the reduction in consumer demand. Secondly, some companies like Reynolds are investing more into cigarette alternatives such as snuff and chewing tobacco to boost their profits in a sustainable way. Visit us at http://www.wallstreetequityresearch.com/ to understand the catalysts and forces driving or affecting companies in the cigarettes industry. About Wall Street Equity Research: Wall Street Equity Research looks to bring simplicity and highly sophisticated research to an ever-changing investing environment. Wall Street Equity Research has been partnering with a number of North American and Emerging Economies analysts to bring you the best of both continents in terms of market analysis and analytical opinions. Enditem