Reynolds American Inc $ 65.4 0 (0%)
Reynolds American Inc News and Headlines -
David Winters (Trades, Portfolio)’ Wintergreen Fund (Trades, Portfolio) announced Friday that the firm’s top three sells during fourth-quarter 2017 were British American Tobacco PLC (BTI), Birchcliff Energy Ltd. (TSX:BIR) and Alphabet Inc. (GOOG)(GOOGL).
British American Tobacco
The fund divested 85.25% of its British American Tobacco stake, selling 736,847 shares for an average price of $65.22 per share. The transaction pared 12.58% of the portfolio.
Winters mentioned in his March 1 shareholder letter the fund had strong returns from British American, which acquired Reynolds American Inc. (RAI) last July. GuruFocus
On March 23, the New York Times ran this headline, “Eton Park to Shut Down as $3 Trillion Hedge Fund Industry Faces Turmoil.” And, indeed, Eton Park did send a message to its remaining clients that it would return their capital and close its doors.
Eric Mindich (Trades, Portfolio), the man behind Eton Park and once the brightest young man on Wall Street, was effectively admitting defeat after what was a brilliant beginning in the industry. The closure helped call into question the whole business model of the hedge fund industry.
Dear Fellow [url=http://www.gurufocus.com/StockBuy.php?GuruName=Wintergreen+Fund]Wintergreen Fund[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Wintergreen+Fund]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Wintergreen+Fund]Portfolio[/url]) Shareholder,
[url=http://www.gurufocus.com/StockBuy.php?GuruName=Wintergreen+Fund]Wintergreen Fund[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Wintergreen+Fund]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Wintergreen+Fund]Portfolio[/url]), Inc. (the “Fund” or “Wintergreen”) outpaced the Standard & Poor’s 500 Composite Index (“S&P 500”) during the first half of 2017, with the Fund’s Investor Class returning 10.99% and the Institutional Class returning 11.08%, compared to the S&P 500’s return of 9.34%. The Fund’s performance during the first half of 2017 benefitted from strong returns from long-term holdings Reynolds American, Inc. (“Reynolds”), British American Tobacco plc (“BAT”), and Nestle SA (“Nestle”). Birchcliff Energy, Ltd., one of the Fund’s best performers in 2016, lagged during the first six months of
It’s been a while since I’ve heard the phrase “obscene profits” bandied about. It’s a pejorative, of course. But maybe investors should look at fat profit margins as a good thing.
The profit margin is simply a company’s profit (either pretax or after tax) as a percentage of its revenue. Fat margins can be a sign that a company has an extraordinarily good product or service, that it has little competition, or that it has its competition on the run.
All of that can, of course change. But finding a company with a competitive edge is half the battle in
“… we at Wintergreen Advisers look for companies that respect and live by good governance. If we are invested and don’t see that, there’s a good chance we will ask management to change or we will ask shareholders to join us in bringing about that change.” --David Winters
If you manage a company that does not respect shareholders, you should hope David Winters (Trades, Portfolio) does not invest in your company. He likes to shake up unresponsive managers and boards of directors. It is one of the key strategies he uses to maximize shareholder
As reported by Bloomberg, British American Tobacco PLC (LSE:BATS) (BTI) sold the second-largest bond deal of 2017.
The company sold $17.25 billion worth of bonds in eight different series, of which the longest has a maturity of 30 years and bears an interest rate of 4.54%.
The proceeds will be used to fund the purchase of the remaining portion of Reynolds American Inc. (RAI) it does not own, which is valued at $55 billion.
With this merger, British American will not only become a stronger tobacco company, but also a leader in next-generation products such as
At the end of last week, shares of U.S. tobacco giant Altria Group Inc. (MO) plunged nearly 20% after the Food and Drug Administration announced it was going to clamp down on nicotine levels in cigarettes. The aggressive reaction was surprising because Altria is considered to be a highly defensive stock. While there could be a chance the regulation will hurt the company, it is more likely Altria will change its products to conform to the new rules.
The enormous decline in Altria’s shares, when fundamentally nothing had changed nor will change for months, if not years, is a warning
British American Tobacco PLC (BTI) sells tobacco products in about 180 countries, of which it holds a leadership position in several. Dunhill, Kent, Pall Mall, Lucky Strike and Rothmans account for a significant portion of its sales.
In the first quarter of the year, several hedge fund managers had bearish sentiments toward the stock. John Rogers (Trades, Portfolio) and John Burbank (Trades, Portfolio) sold out. Jim Simons (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Tom
Philip Morris (PM)'s performance was below expectations in the first trimester as a consequence of the low volumes in Europe.
Specifically, first-quarter performance was characterized by diluted earnings per share of $1.02, up by 4 cents or 4.1% versus 98 cents in the same period of 2016. But adjusted diluted earnings per share of 98 cents were flat versus first-quarter 2016 and missed consensus by 5 cents. Moreover, revenue of $6.06 billion, down by 0.3% year over year, also missed consensus by $410 million.
The reasons behind these weak numbers are the 9.4% decline of total cigarette and heated tobacco
Let's say you and I own a lemonade stand and at the end of the year we have a profit of $100,000. We are now faced with a decision: We can either spend the money on one epic night at Dave & Buster's (PLAY), or we can reinvest it back into the business.
If we choose option No. 2 – let's say we buy an automated lemon squeezer – and profits increase as hoped, then the value of the business should increase as well. Similarly, the value of public companies should increase as wise allocation decisions
At the end of the first quarter of each fiscal year, large tobacco companies typically report a decline in sales for cigarettes and cigars.
This was the case for the first quarter of 2017, in which Altria Group Inc. (MO), Reynolds American Inc. (RAI) and Philip Morris International Inc. (PM), three of the largest tobacco producers in terms of market capitalization, reported their sales declining between 2.6% and 11.5% compared to the same period a year ago.
Altria closed the first quarter with a decline of 2.6% in the number of cigarettes and cigars shipped. During the quarter, Altria shipped
Reynolds American Inc. (RAI) reported an adjusted earnings per share (EPS) of 56 cents and a 12% increase on a year-over-year basis, missing analysts’ expectations on EPS by 2 cents in the first quarter, according to figures released May 3.
The difference between actual EPS and forecasted EPS produced a negative surprise of 3.4%.
Source: Yahoo Finance
Revenue came in at $2.949 billion in the first quarter, a 1.1% increase on a year-over-year basis and missed analysts’ expectations on revenue by $81 million.
Source: Yahoo Finance
Despite a 5% drop
London-based British American Tobacco's (BTI)(LSE:BATS) aquisition deal with Reynolds American Inc. (RAI) has overcome another obstacle that prevented its completion.
In a press release Wednesday, Reynolds American announced Japanese regulators had granted British American unconditional antitrust approval in regard to its proposed deal.
The American tobacco company headquarter in Winston-Salem, North Carolina, said that “together with the previously announced expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting period, the conditions related to antitrust approvals required as part of the closing conditions to the proposed acquisition have now been satisfied.”
The deal is now expected to close in the third
The Royal Bank of Canada (RY) released new ratings for Altria Group Inc. (MO) with a new target price Thursday.
Altria Group has been downgraded by analysts at Royal Bank of Canada to Underperform from Sector Perform with a target price per share of $62.
Royal Bank of Canada’s downgrade is the third over a total of seven ratings delivered by analysts over the last 12 months and preceded by Berenberg’s (from Buy to Hold) downgrade, released on March 3. During this period, Jefferies (to hold) and Citigroup (to buy) initiated a coverage on the U.S. tobacco giant. The company
The most-asked question this year both during and after the Daily Journal Corp. (DJCO) meeting, to my recollection, was how Buffett and Munger were so good at judging people. In the post-meeting small group discussion, Munger spent quite some time teaching us the value of integrity and making money in the most righteous way. On this note, I would like to share some thoughts and observations on the aforementioned topic.
First of all, some general observations:
- The best way to be good at judging people (especially the high caliber ones) is to embrace the admirable qualities such as integrity,
According to GuruFocus' list, these stocks have reached their 52-week highs.
Johnson & Johnson reached the 52-week high of $123.79
Johnson & Johnson (JNJ) is a holding company that is engaged in the research and development, manufacture and sale of products in the health care field within its Consumer, Pharmaceutical and Medical Devices and Diagnostics business segments.
Johnson & Johnson is the world's largest and most diverse health care company. Three divisions make up the company: pharmaceutical, medical devices and diagnostics and consumer. The drug and device groups represent close to 80% of
The U.S. tobacco giant headquartered in Winston-Salem, North Carolina, will pay 51 cents per ordinary share on April 3 to shareholders of record as of March 10.
The dividend represents a 10.9% increase from the previous quarterly dividend of 46 cents per share.
The increase in the quarterly dividend is backed by robust growth in 2016 earnings and sales. The growth was driven by higher tobacco prices and an increase in the
Philip Morris International Inc. (PM), the largest publicly traded manufacturer and marketer of tobacco products, sells cigarettes all over the world.
The company has an absorbing diversification, offsetting the declining consumption in developed countries. China and India are markets on which management should focus and are promising in the long run. Not just geographic reach should be on their radar but also the apparent increase of e-cigarettes consumption. Taking advantage of customer loyalty to the leading brand Marlboro, the company has a strong pricing power.
These two things make this company invaluable: Its tobacco products portfolio and the
RBC Capital Markets downgraded Reynolds American Inc. (RAI) from Outperform to Sector Perform on Feb. 13.
The firm set a new target price of $60, an 11.11% increase from the previous target price of $54 in January .
The new target price represents a 3.8% upside from the average target price of $57.79, which ranges between a low of $52 and a high of $62.50.
With its rating, the global investment bank headquartered in Toronto, Canada said it sees a weakening in the future prospects of the tobacco company.
Considering the tobacco giant is trading at around $60.31 per share,
Reynolds American Inc. (RAI) reported financial results for the last quarter of 2016 and for the whole year on Feb. 9.
For the fourth quarter of 2016, the U.S. tobacco giant generated an adjusted EPS of 62 cents, a 29.2% increase on a year-over-year basis, and beat analysts’ expectations on EPS by 2 cents.
Source: Yahoo Finance
For the full year of 2016, the company reported an adjusted EPS of $2.31. The figure represents a 16.7% increase from full-year 2015 adjusted EPS of $1.98.
Concerning revenue, Reynolds American reported net sales of $3.186 billion for the
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