Stocks to Watch in the Vape Trade

Stocks to Watch in the Vape Trade

If you trade stocks, here is one of the stocks to watch, and it’s in the vape trade!

Article by John Persinos on TheStreet

Here Is the One Stock to Buy to Profit From the Vaping, E-Cigarette Craze

There is a new entry to the lexicon of hipster jargon: “vape.”

It means inhaling and exhaling the vapor created by an e-cigarette, a battery-powered device that heats liquid nicotine in either a disposable or refillable cartridge. E-cigs are all the rage, and they pose a challenge to traditional cigarette makers.

They also offer a huge multi-year growth opportunity for investors.

One of the best e-cig stocks to watch is Philip Morris!

One of the stocks to watch and benefits the most from the vape trade is Philip Morris International, which makes and markets cigarettes and other nicotine-containing products around the world. This year, in addition to double-digit capital appreciation, the stock also offers a high and sustainable dividend.

Philip Morris is scheduled to report first-quarter earnings before the market opens on Tuesday.

E-cig revenue in the vape trade is showing gains not seen by the tobacco industry since the halcyon days of the 1950s and 1960s, when the “Don Drapers” of the era chain-smoked almost anywhere they wanted.

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E-cigs got a big boost this week, amid new reports that their use continued to rise last year among teenagers and preteens in the United States. But at the same time, the data assuaged concerns that e-cigs are serving as a gateway to hook kids on traditional cigarettes, which are more harmful.

Vaping also is trendy with the millennial demographic sought by consumer brand companies, especially as younger people reject traditional cigarette smoking in droves. The upshot: a new generation of users is rapidly adopting e-cigs, which puts the devices onto a long-term growth trajectory.

stocks to watch vape

One of the best ways to make money is to invest in companies that are tapped into accelerating trends, and e-cig play Philip Morris fits the description, making it one of the hottest stocks to watch.

The overall use of e-cigs has boomed since they first hit the market in the mid-2000s. Indeed, their popularity has risen so quickly, federal regulators and scientists studying their health effects have scrambled to keep up.

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Final rules from the Food and Drug Administration, which regulates tobacco products, are imminent.

Since 2008, the number of U.S. “vape shops” has increased to about 8,500, and sales of electronic cigarettes and ancillary supplies reached $3.5 billion, according to analysts at Wells Fargo.

Supplies include vaporizers, e-liquids, e-cigarettes and e-hookahs.

Battery powered e-cig devices mimic smoking by applying a heating element that vaporizes nicotine-infused liquid. E-cigs are odorless, which means that they can be enjoyed in public places, and they are less expensive than traditional cigarettes, largely because they aren’t taxed.

And so far, science has ruled that e-cigs aren’t harmful, though only time will tell whether that verdict is definitive.

The explosion of e-cigs has spawned a host of small-cap, entrepreneurial companies in the industry, akin to the dynamic unfolding in the medical marijuana industry. But many of these companies are poorly capitalized penny stocks, and they face an inevitable shakeout.

That is why one of the best e-cig stocks to watch is Philip Morris, a familiar name and also a multi-billion-dollar blue-chip behemoth with a high dividend.

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Based in New York with a market capitalization of more than $154 billion, Philip Morris continues to expand into developing nations where an ascendant middle class covets the flashy Western consumer brands that seem synonymous with “the good life.” Chief among those brands is the company’s iconic Marlboro cigarettes.

However, as anti-smoking laws take hold in emerging nations, especially in cigarette-loving countries such as China and Russia, Philip Morris is seguing to e-cigs, which entail less regulatory oversight and give the company greater traction with a younger demographic.

Philip Morris started selling e-cigs in 2014, using existing technology that it has since been perfecting. The company has introduced a “new and improved” e-cig that heats tobacco instead of liquid and doesn’t require batteries.


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