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August 12th, 2016:

Electronic Marlboro sucks smokers away from Japan Tobacco

http://english.astroawani.com/business-news/electronic-marlboro-sucks-smokers-away-japan-tobacco-113807

TOKYO: Marlboro maker Philip Morris International says its e-cigarette has rapidly captured close to 3 percent of Japanese tobacco sales, making inroads into a market Japan Tobacco (JT) relies on for 40 percent of its profit.

In what may be an early vindication of Philip Morris’s e-cigarette strategy, the iQOS accounted for 2.2 percent of Japan’s tobacco sales in the quarter ended June 30, a company spokesman said.

That share had climbed to 2.7 percent by the end of June after Philip Morris rolled out the 9,980 yen ($98.53) electronic smoker in late April accompanied by “HeatSticks”, which cost the same as regular cigarettes.

“The figures clearly show that iQOS is stealing a chunk of the rolled tobacco market,” said Masashi Mori, analyst at Credit Suisse Securities in Tokyo. Japan’s overall cigarette sales in June shrank 5.2 percent.

On Friday, JT said revenue from July cigarettes sales in Japan dipped by 3.4 percent to 53.4 billion yen.

Unlike conventional e-cigarettes that vaporise a nicotine infused liquid, iQOS produces a smokeless aerosol by heating tobacco leaf packed into stubby cigarettes inserted into the device.

So far it has tested the gadget in seven countries including cities in Switzerland and Italy. Japan, which has suppressed e-cigarette “vaping” by regulating nicotine liquids under pharmaceutical laws, is the only country where it is sold nationwide.

Demand for iQOS, which is made in Malaysia, has outstripped demand, leaving Philip Morris unable to make the most of its early entry into Japan. Some limited-edition IQOS models are selling online for as much as 80,000 yen.

“When Philip Morris can supply enough to meet demand then its push in to the market is very likely to accelerate,” UBS Securities Japan analyst Naomi Takagi said.

E-cigarettes assuage some smokers’ health concerns and ease social stigmas attached to tobacco. Tobacco firms are battling to take an early lead in the emerging market as overall cigarette sales shrink globally.

Sales of e-cigarettes, however, are booming, growing five times to $8 billion in 2014 from 2010, according to research company Euromonitor. The market in 2020 is likely to be 20 times the 2010 level, predicts Euromonitor. Global cigarette revenue is about $750 billion.

Philip Morris plans to widen sales of iQOS to 20 countries by the end of the year.
Former state tobacco monopoly Japan Tobacco, which has 60 percent of its domestic market, is struggling to counter the challenge with its own device. JT’s electronic cigarette stick, dubbed the Ploom TECH, creates a vapor from a liquid that is passed through granulated tobacco.

Yet the world’s No. 3 cigarette maker has so far been unable to match iQOS’s nationwide launch, with no clear indication yet when it will have sufficient production output to do so.

“It doubtful JT will manage a wider launch before the end of the year,” Takagi at UBS Securities said.

MoF to prepare ordinance for imposing tax on tobacco, its derivatives

http://www.arabtimesonline.com/news/mof-prepare-ordinance-imposing-tax-tobacco-derivatives/

KUWAIT CITY, Aug 11: The Cabinet has asked the Ministry of Finance to prepare ordinance for imposing tax on tobacco and its derivatives, reports Al-Anba daily. According to highly reliable sources from the ministry, the Cabinet instructed the Ministry to coordinate with the Fatwa and Legislation Department in drafting the ordinance.

Sources explained this step is part of the implementation of a decision taken by the Gulf Cooperation Council to address the low qualitative tax for tobacco and its derivatives as stated in the unified GCC customs charges, by increasing it to double the current minimum charges. Sources added the ordinance will be implemented in September.

Meanwhile, other sources expect the ministerial Financial Committee to complete deliberations on a study conducted by Kuwait Direct Investment Promotion Authority (KDIPA) on merging the Public-Private Partnership (PPP) with the Technical Agency for Privatization Program.

A report published earlier by the daily revealed that the Cabinet is waiting for the opinion of the represented bodies in the committee due to many similarities in terms of specialties and work between the PPP and privatization program. This is in addition to looking at the possibility of avoiding risks indicated by the technical agency headed by the minister of commerce and industry. Practical solutions and comprehensive studies are required before taking final decisions to avoid these risks, sources added.

Oral cancer attributable to betel chewing with tobacco leaves and areca nuts – Dr. Prasanna Jayasekera

http://www.asiantribune.com/node/89358

In Sri Lanka of the cancers prevalent among males, a quarter is oral cancer which is attributable to betel chewing with tobacco leaves and areca nuts, says Dr. Prasanna Jayasekera, Consultant in Community Dentistry of the National Cancer Control Program.

According to Dr. Jayasekera, while there are 28 carcinogens in tobacco leaves, areca nuts contain 4 cancer causing toxics.

Thus the users eventually become cancer victims. Dr. Jayasekera sends across a special message to the public, ” Avoid using these toxic substances which are addictive. If there are changes noticed in the mouth such as red patches, white patches or red and white mixed patches, go to the nearest MOH office or to the dental clinic for a checkup.”

As regards preventive methods, he said there are special programs for school children. The authority is alert and advises school authorities to be vigilant on tobacco associated product selling centres near schools.

Dr. Jayasekera, specially requests school teachers to be vigilant on school children, if noticed children’s behavior change and got to know that they purchase or use such products. Teachers should take immediate action and inform the Public Health Inspectors about such selling centres.

Oral cancer which is very dangerous puts a victim into a very pathetic situation. When a person suffers from oral cancer the entire area has to be removed in the mouth. Fifty percent of victims succumb death within 5 years. In a year 2422 oral cancer new patients are discovered in Sri Lanka and at least 3-4 patients die in a day, though this situation is preventable, if one avoids using tobacco leaves and area nuts.

When taking into consideration the situation during the past 5 years, there is a 40 percent increase in oral cancers. It is more prevalent among old people. The reason is that they have got exposed to risk factors for a long period.

The National Cancer Control Program (NCCP) is engaged in ensuring primary prevention of cancers by addressing risk factors and determinants by improved public awareness and empowerment.

The NCCP is the national focal point for prevention and control of cancers in the country and is responsible for policy, advocacy, monitoring and evaluation of prevention and control of cancers.

Vaping causes harmful brain changes in teens

http://kdhnews.com/harker_heights_herald/opinion/wellness_works/vaping-causes-harmful-brain-changes-in-teens/article_f374527c-6008-11e6-a1aa-0ff6548b2a48.html

Last week, we looked at the rapid rise of e-cigarettes (e-cigs) as a popular alternative nicotine delivery device. Many people using e-cigs are aware of the many dangerous chemicals present in cigarette smoke, including tar and various other carcinogens. There is truth to the statement that e-cigs lack the many dangerous chemicals present in smoke, and in fact England Public Health estimates in their report that e-cigs are 95% safer than regular cigarettes, although this is based mostly on expert opinion.

That said, nicotine itself, without any other chemicals, can have significant health effects. Nicotine harms the fetus in pregnancy, causing lasting consequences to brain and lung development. It also causes long-term effects on memory and attention when used by adolescents and teenagers, with lasting cognitive and behavioral impacts. Other chemicals in e-cigs, such as the liquid creating the base and certain flavor additives, may have negative effects. Flavor chemicals used in e-cigs are food grade, but that does not mean they are safe to vaporize and inhale into the lungs. Poisonings also have occurred from getting cartridge contents in the mouth, skin, and eyes, including a tragic death in 2014 when a child ate the nicotine liquid. E-cigs should be kept well away from children.

Despite that advice, e-cig use is now more common among teenagers than traditional cigarette use. In fact, they increased in popularity so quickly that the CDC reported e-cig use doubled from 2011 to 2012 among US middle and high school students. Aggressive marketing, including kid-friendly flavors like bubble gum and gummy bear, as well as easy online purchase options, are likely culprits. Vaping is increasing in popularity with teenagers, the very population most likely to be harmed by nicotine use. It bears repeating: Nicotine causes long-term effects on working memory and attention when used by adolescents and teenagers, with lasting cognitive and behavioral changes.

E-cigs still have many unknowns. Although many adult smokers are interested in e-cigs for smoking cessation, there is not currently high-quality research demonstrating that they are effective for this purpose. We don’t know for certain how much nicotine or what other chemicals are in them, which brands are safest, or how helpful they may be as a smoking-cessation aid. We do know they are not safe for pregnant women and teenagers. If you do chose to vape, be sure to cut back on cigarette use and get information on quitting smoking from your doctor. And seriously, keep them away from your kids and teens.

Dr. Jacob MINOR is board-certified by the American Board of Otolaryngology. He practices at Seton Medical Center Harker Heights.

Philip Morris International is Dominating the E-Cigarette Revolution in Japan

Philip Morris International Inc. (NYSE:PM) is making big inroads in the Japanese tobacco market with its iQOS smokeless tobacco e-cigarettes, which could drive big revenues in a country with 20 million smokers.

http://etfdailynews.com/2016/08/12/philip-morris-international-is-dominating-the-e-cigarette-revolution-in-japan/

In what may be an early vindication of Philip Morris’s e-cigarette strategy, the iQOS accounted for 2.2 percent of Japan’s tobacco sales in the quarter ended June 30, a company spokesman said.

That share had climbed to 2.7 percent by the end of June after Philip Morris rolled out the 9,980 yen ($98.53) electronic smoker in late April accompanied by “HeatSticks”, which cost the same as regular cigarettes.

“The figures clearly show that iQOS is stealing a chunk of the rolled tobacco market,” said Masashi Mori, analyst at Credit Suisse Securities in Tokyo. Japan’s overall cigarette sales in June shrank 5.2 percent.

Unlike traditional cigarettes, e-cig sales are jumping around the world as former smokers flock to what is widely considered a safer alternative to tobacco. The e-cig market saw $8 billion in sales in 2014, more than five times 2010′s total.

Philip Morris is investing heavily in the new technology and wants to expand its reach to many other nations soon.

Philip Morris plans to widen sales of iQOS to 20 countries by the end of the year.

Former state tobacco monopoly Japan Tobacco, which has 60 percent of its domestic market, is struggling to counter the challenge with its own device. JT’s electronic cigarette stick, dubbed the Ploom TECH, creates a vapor from a liquid that is passed through granulated tobacco.

Philip Morris International shares rose $0.49 (+0.50%) to $99.35 in Friday afternoon trading. The largest U.S.-based international seller of tobacco products has seen its stock rise 13% year-to-date, nearly doubling the performance of the S&P 500 in the same period.

pmnysebats

Institutional Investors Decreasing Positions in Philip Morris International, Inc. (NYSE:PM)

http://www.engelwooddaily.com/institutional-investors-decreasing-positions-in-philip-morris-international-inc-nysepm/615594/

According to the latest SEC Filings, institutions owning shares of Philip Morris International, Inc. (NYSE:PM) have decreased their positions by -0.64%. Institutions now own 71.50% of the company.

Big organizations that control vast sums of money, such as mutual funds, insurance companies or pension funds, that buy securities are known as “institutional investors”.

Unlike individual investors, institutional investors trade in massive blocks of 10,000 or more shares per transaction. The sheer size of these trades significantly affect the price of a share.

PROS AND CONS

Peter Lynch says in his best-selling book, “One Up on Wall Street”, that institutional ownership is a negative thing. “Institutions don’t own it and the analysts don’t follow it”. He favors the stocks that big investment groups pass on because he feels that these stocks are undervalued. In contrast, Investor’s Business Daily’s William O’Neil thinks that institutional investors are important to driving up stock prices because they provide the largest source of demand for stocks. O’Neil argues that if a stock has no institutional ownership, it means they have already passed on it. He regards institutional ownership as a desirable stock trait in his book, “How to Make Money in Stocks”.

Investors often look favorably upon stocks who have a large amount of institutional ownership. These large companies often employ a team of analysts to perform financial research before purchasing a large block of stock, making their decisions influential in the eyes of other investors.

Due to the financial commitment that these companies make into research, these institutions aren’t quick to sell off their shares. But when they do, however, it can drive down the price.

TECHNICAL ANALYSIS

Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward. Analysts use common formulas and ratios to accomplish this.

Philip Morris International, Inc. (NYSE:PM)’s RSI (Relative Strength Index) is 46.54. RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet. These numbers are then crunched to create theoretical valuations of companies.

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares. EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital. Philip Morris International, Inc.’s EPS is 4.19. Their EPS should be compared to other companies in the Consumer Goods sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share. P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels. Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively. Philip Morris International, Inc.’s P/E ratio is 23.65.

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth. PEG is created by dividing P/E by the projected rate of earnings growth.

Philip Morris International, Inc.’s PEG is 2.86.

RETURNS AND RECOMMENDATION

Shareholders can expect a return on equity of -49.80%. Calculated by dividing Philip Morris International, Inc.’s annual earnings by its total assets, investors will note a return on assets of 19.20%. Finally, Philip Morris International, Inc.’s return on investment stands at 52.10% when you divide the shareholder’s return by the cost. The consensus analysts recommendation at this point stands at 2.20 for Philip Morris International, Inc. (NYSE:PM). This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.