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from the recent Vector filing --- VGR
“We are pleased to have completed the exchange of these senior convertible notes,” said Howard M. Lorber, President and Chief Executive Officer of Vector Group Ltd. “This exchange is a positive development for our Company, as the newly issued notes have an extended maturity date and a lower cash interest cost. We will continue to take advantage of opportunities to further enhance Vector Group’s strong financial position.”
Completely understand ---- w/ the new FDA crap, may be to your advantage......not really sure HOW this is going to all play out.........in the near/long term.
Keep the faith ----- HRCT will "set us free" !!!!!!!
Gonna have to hold off a bit. Coffers are runnin' thin. Had a few bad months, got a few bad accounts, and had a couple of hefty estimated tax payments... The perfucked storm.... :~(
Form 8-K for VECTOR GROUP LTD
--------------------------------------------------------------------------------
16-Jun-2009
Entry into a Material Definitive Agreement, Financial Statements and Exhibits
Item 1.01 Entry into a Material Definitive Agreement.
On June 15, 2009, Vector Group Ltd. (the "Company") entered into Issuance and Exchange Agreements (the "Agreements") with certain holders of the Company's 5% Variable Interest Senior Convertible Notes due 2011 ("Old Notes"), pursuant to which the Company agreed to issue $103.98 million 6.75% Variable Interest Senior Convertible Exchange Notes Due 2014 of the Company ("Notes") in exchange for $97.18 million aggregate amount of Old Notes, which are held and/or beneficially owned by such holders.
Under the Agreements, each Holder will exchange an aggregate principal amount of the Company's Old Notes, valued at 107% of principal amount, for Notes. The Notes will be issued under an indenture that the Company will enter into on the closing date. The Agreements contain customary representations, warranties, covenants and closing conditions. The Company expects to consummate the transaction by June 30, 2009.
The Company intends to issue the Notes to the holders in reliance on the exemption from the registration requirements of the Securities Act of 1933, as amended, afforded by Section 3(a)(9) thereof. Pursuant to such exemption, the Notes will be freely tradable upon exchange. No holder of any Old Note has made or will make any cash payment to the Company in connection with the exchange of notes.
The Notes are convertible, at the option of the holder at any time on or prior to maturity, into shares of the Company's common stock at a conversion price of $17.06 per share, which is equal to a conversion rate of approximately 58.606 shares of common stock per $1,000 principal amount of Notes, subject to adjustment.
Interest on the Notes is payable quarterly on February 15, May 15, August 15 and November 15 of each year, beginning August 15, 2009. The Notes will accrue interest at 3.75% per annum, with an additional amount of interest payable on each interest payment date equal to the product of the amount of cash dividends paid by the Company on its common stock during the prior three-month period ending on the record date for such interest payment multiplied by the number of shares of the Company's common stock into which the Notes are convertible on such record date (such additional interest, on an annualized basis, the "Additional Interest Payment," and the sum of 3.75% per annum of the outstanding principal amount of the notes plus the Additional Interest Payment, being the "Total Interest"). Notwithstanding the foregoing, annual interest payable shall be the higher of (i) the Total Interest or (ii) 6 3/4% per annum of such outstanding principal amount. The Notes will mature on November 15, 2014. The Company will redeem on June 15, 2014 and at the end of each interest accrual period thereafter an additional amount, if any, of the Notes necessary to prevent the Notes from being treated as an "Applicable High Yield Discount Obligation" under the Internal Revenue Code.
The Notes will be the Company's unsecured and unsubordinated obligations and will rank on a parity in right of payment with all of its existing and future unsecured and unsubordinated indebtedness. In addition, the Notes will effectively rank junior to the Company's existing and any future secured indebtedness and junior to liabilities of the Company's subsidiaries.
Upon a fundamental change (as defined in the Notes), each holder of the Notes may require the Company to repurchase some or all of its Notes at a repurchase price equal to 100% of the aggregate principal amount of the Notes plus accrued and unpaid interest, if any.
If an event of default (as defined in the Notes) has occurred and is continuing (as defined in the Notes), the holders of at least 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable at their principal amount together with accrued interest, except that an event of default resulting from a bankruptcy or similar proceeding will automatically cause the Notes to become immediately due and payable without any declaration or other act on the part of any Note holders.
The summary of the foregoing transaction is qualified in its entirety by reference to the text of the related Agreements, a form of which is included as an exhibit hereto and is incorporated herein by reference.
--------------------------------------------------------------------------------
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits The following Exhibits are filed herewith:
Exhibit 4.1 Form of Issuance and Exchange Agreement, dated as of June 15, 2009.
Exhibit 99.1 Initial press release issued June 16, 2009.
and Vector Group (NYSE: VGR), while against the legislation, have been more quiet in their disapproval. Vector’s development of lower-nicotine products could position it well in this new FDA-regulated world,..................
http://www.fool.com/investing/dividends-income/2009/06/15/is-this-sector-going-up-in-smoke.aspx
May need to re-evaluate VGR holdings now.....this "may" have a dramatic impact on all (except MO/PM which will be a monopoly).....if you're IN "vgr" ---- keep the ears/eyes open!
====================================
UPDATE 3-US near tighter rein on tobacco after Senate vote
Thu Jun 11, 2009 9:48pm EDT
* FDA tobacco legislation passes 79-17
* Bill could go to Obama soon, top House Democrat says
* Health groups cheer vote, industry divided (Adds reaction, details of bill)
By Susan Heavey
WASHINGTON, June 11 (Reuters) - The U.S. Senate on Thursday backed a historic plan giving the U.S. Food and Drug Administration sweeping power over cigarettes and other tobacco products, allowing the agency to curb advertisements, require stronger package warnings and inspect manufacturers.
Supporters, backed by hundreds of health advocacy groups, cheered the bill's passage as a way to rein in cigarette makers and reduce smoking, especially among teenagers and children.
"The tobacco companies' days of peddling one of the most deadly products in the world have finally come to an end," Democratic Assistant Senate Majority Leader Dick Durbin said. "Now, we've given the FDA the tools necessary to protect millions of children and families from deadly tobacco-related diseases."
Under the measure, which passed in a bipartisan 79-17 vote, the FDA would also collect millions of dollars in fees from cigarette makers, which must register with the agency and provide a list all the products they make.
A similar measure has already passed the U.S. House of Representatives. House Speaker Nancy Pelosi said earlier on Thursday she wanted to look closely at the Senate's bill. "But from what I have seen so far, I believe it will be possible for us to accept their bill and send it right on to the president," she said.
President Barack Obama, who has discussed his own struggles to quit smoking, said he will sign the bill into law, saying "it will make history by giving the scientists and medical experts at the FDA the power to take sensible steps that will reduce tobacco's harmful effects and prevent tobacco companies from marketing their products to children."
TOBACCO COMPANIES DIVIDED ON BILL
The American Cancer Society, the American Medical Association and other advocacy groups urged quick final passage.
Tobacco companies, which suffered a blow last month when an appeals court agreed that the industry lied to hide the dangers of smoking, are divided over the likely new regulations.
Altria Group Inc's (MO.N: Quote, Profile, Research, Stock Buzz) Philip Morris unit, the nation's largest cigarette maker, supports "tough but reasonable federal regulation of tobacco products," it said in a statement.
But others, such as Reynolds American Inc's (RAI.N: Quote, Profile, Research, Stock Buzz) R.J. Reynolds Tobacco unit and Lorillard Inc's (LO.N: Quote, Profile, Research, Stock Buzz) Lorillard Tobacco Co, say new records and fees will be a burden.
Reynolds spokeswoman Maura Payne said the company would comply with the regulations when they become law, but that "a lot of the details are yet to be worked out."
The bill explicitly bans flavored tobacco products, except for menthol. Banning menthol could have especially hurt Lorillard, the top menthol cigarette maker. The bill does call for a report on the impact of menthol cigarette use, especially among blacks, Hispanics and other minorities.
This is not the first time the tobacco companies have faced tighter controls. Television and radio cigarette ads have been banned for decades, and package warnings have been around just as long. Various court settlements over the years have also called for marketing restrictions.
Under the Senate plan, advertising curbs would include print media with large youth audiences. It also calls for restricted vending machine sales, among other steps.
NEW CHALLENGE FOR FDA
The bill's opponents said the FDA, which has been dogged by various tainted food and drug safety scandals in recent years, is not up to the task of regulating yet another industry.
Some also said money would be better spent on programs to help people stop smoking rather than simply regulating a product that is known to cause death and serious illnesses. Tobacco use causes more than 400,000 deaths in the United States a year, according to the Centers for Disease Control and Prevention.
"We should focus FDA resources on protecting the public health, not burdening it with an impossible assignment," said Senate Republican leader Mitch McConnell of Kentucky, a tobacco state.
But the Senate health committee's leading Republican -- Sen. Mike Enzi, who initially opposed the bill -- voted in favor of the measure despite concerns that include how Congress will fund the FDA tobacco center long-term.
"This bill is the only bill that will seriously keep kids from smoking," he said. "We know from past experience that tobacco companies are not inclined to follow the law." (Reporting by Susan Heavey; Additional reporting by Richard Cowan; Editing by Phil Berlowitz, Leslie Gevirtz, Gary Hill)
Dang!... Already time again.... Better add a few...
cha~ching!
Vector Group Declares Quarterly Cash Dividend
On Wednesday June 3, 2009, 5:26 pm EDT
MIAMI--(BUSINESS WIRE)--Vector Group Ltd. (NYSE: VGR - News) today announced that it has declared a regular quarterly cash dividend on its common stock of $0.40 per share. The dividend is payable on June 30, 2009 to holders of record as of June 18, 2009.
Vector Group is a holding company that indirectly owns Liggett Group LLC, Vector Tobacco Inc. and New Valley LLC. Additional information concerning the company is available on the company’s website, www.VectorGroupLtd.com.
Contact:
Sard Verbinnen & Co
Paul Caminiti/Carrie Bloom/Jonathan Doorley
212-687-8080
What's Your MO, Altria?
By Colleen Paulson
May 26, 2009 | Comments (1)
It will be interesting to see how companies with smaller exposure to the U.S. such as British American Tobacco (NYSE: BTI) and Vector Group (NYSE: VGR) would fare in this new world. The Vector Group is especially one to watch, with its Vector Tobacco group producing low-nicotine and nicotine-free cigarettes. Although others have said FDA regulation would strangle innovation, you have to think that these new types of products could thrive in this new climate..............
http://www.fool.com/investing/international/2009/05/26/whats-your-mo-altria.aspx
Significant ownership brewing here:
VGR
Press Release Source: Vector Group Ltd.
Vector Group Ltd. Completes Sale of Senior Convertible Notes
On Monday May 11, 2009, 5:14 pm EDT
MIAMI--(BUSINESS WIRE)--Vector Group Ltd. (NYSE: VGR - News) announced today that it has completed the sale of $50 million aggregate principal amount of its 6.75% Variable Interest Senior Convertible Notes due 2014 (the “Notes”) to Frost Nevada Investments Trust in a private placement. The purchase price consisted of $38.225 million in cash and $11.005 million aggregate principal amount of the Company’s 5.0% Variable Interest Senior Convertible Notes due 2011, valued at 107% of principal amount. Frost Nevada Investments Trust is affiliated with Dr. Phillip Frost, who, prior to the consummation of the sale, may have been deemed to beneficially own approximately 8.1% of the common stock of the Company. Following consummation of the sale, Dr. Frost may be deemed to beneficially own approximately 11.5% of the common stock of the Company. The Company intends to use the net proceeds of the issuance for general corporate purposes.
The Notes are convertible, at the option of the holder at any time on or prior to maturity, into shares of the Company’s common stock at a conversion price of $15.04 per share, which is equal to a conversion rate of approximately 66.489 shares of common stock per $1,000 principal amount of Notes, subject to adjustment. Under the terms of the Notes, upon request by the holders of a majority in aggregate principal amount of the then outstanding Notes, the Company has agreed to file a registration statement with the Securities and Exchange Commission covering the Company’s common stock issuable upon conversion of the Notes.
Interest on the Notes is payable quarterly on February 15, May 15, August 15 and November 15 of each year, beginning August 15, 2009. The Notes will accrue interest at 3.75% per annum, with an additional amount of interest payable on each interest payment date equal to the product of the amount of cash dividends paid by the Company on its common stock during the prior three-month period ending on the record date for such interest payment multiplied by the number of shares of the Company’s common stock into which the Notes are convertible on such record date (such additional interest, on an annualized basis, the “Additional Interest Payment,” and the sum of 3.75% per annum of the outstanding principal amount of the notes plus the Additional Interest Payment, being the “Total Interest”). Notwithstanding the foregoing, annual interest payable shall be the higher of (i) the Total Interest or (ii) 6 3/4% per annum of such outstanding principal amount. The Notes will mature on November 15, 2014.
Vector Group is a holding company that indirectly owns Liggett Group LLC, Vector Tobacco Inc. and New Valley LLC. Additional information concerning the Company is available on the Company’s website, www.VectorGroupLtd.com.
Contact:
Sard Verbinnen & Co
Paul Caminiti/Carrie Bloom/Jonathan Doorley
212-687-8080
LOL ~~ I was just goshin' ya' a bit ----- needed a little "relief" from the doom/gloom of HRCT board !!
VGR is longterm for me too ----->>> but, I did sell ALL
my MO shares this morning.......and, the timing could NOT
have been better as the SCOTUS ruling came out about a half
hour later!! >> LUCKY!!
Yeah, yeah, yeah..... I snooze, I loze. I'm in it for the long haul though. Will try to add a few here and there throughout the year..... BEFORE the record date.... :~)
My Altria (MO) sell.....maybe came at the BEST time ever!!
=========================================================
Court ends Philip Morris appeal of $79.5M award
Supreme Court dismisses Philip Morris appeal of $79.5M award to smoker's widow
Mark Sherman, Associated Press Writer
Tuesday March 31, 2009, 10:19 am EDT
WASHINGTON (AP) -- The Supreme Court has dismissed a cigarette maker's appeal of a $79.5 million award to a smoker's widow, likely signaling the end of a 10-year legal fight over the large payout.
In a one-sentence order Tuesday, the court left in place a ruling by the Oregon Supreme Court in favor of Mayola Williams. The state court has repeatedly upheld a verdict against Altria Group Inc.'s Philip Morris USA in a fraud trial in 1999.
The judgment has grown to more than $145 million with interest.
The justices heard arguments in the case in December, but said Tuesday that they are not passing judgment on the legal issues that were presented. Instead, it is as if the court had declined to hear the case at all.
Atritech Completes $30 Million Financing 03/26 11:12 AM
Company scheduled to announce PROTECT AF results on March 28th at ACC.
MINNEAPOLIS, March 26 /PRNewswire/ -- Atritech, Inc. a clinical stage medical device company, announced today that it has completed a $30 million round of financing. Thomas, McNerney & Partners led the round along with a substantial investment from Split Rock Partners and insider investments from Prism Ventures, Tullis-Dickerson and Vector Group (VGR:$13.31,00$-0.05,00-0.37%) . Over the past 3 years, the Company has raised approximately $75 million in capital.
With this new funding, the Company will complete the Food and Drug Administration (FDA) review of the PROTECT AF clinical trial results along with the commercial launch of the WATCHMAN(R) LAA Closure Technology in Europe. The PROTECT AF clinical trial evaluates the WATCHMAN device versus the current standard of care, warfarin, in patients with atrial fibrillation. In August of 2008, Atritech announced the filing of its Pre-Market Approval Application (PMA) to the FDA. The Company will present the PROTECT AF results to the FDA'sCirculatory System Devices Panel on April 23, 2009. The WATCHMAN device continues to be implanted in a Continued Access Registry (CAP) while the product is under review at the FDA. To date over 110 devices have been implanted in CAP at approximately 20 sites in the U.S. and Europe.
Atritech's WATCHMAN device is designed to keep harmful sized blood clots from entering a patient's blood stream, potentially causing a stroke. Patients with AF (a heart condition which causes the upper chambers of the heart to beat too rapidly) are at a greater risk of having a stroke. Typically these patients require blood thinning medications to prevent these clots from forming in the heart. Current medical therapy requires frequent monitoring and has diet and other drug interactions causing many patients to stop taking them. The WATCHMAN device may be an effective alternative for patients with AF who may not want to take blood thinning medications for life.
"Atritech has developed an exciting new product that in our opinion will offer a significant clinical benefit to the market. We look forward to working with the company to help make the WATCHMAN a commercial success," commented Pete McNerney, Partner at Thomas, McNerney & Partners.
"We are excited to have attracted a new lead investor along with receiving the continued support from our existing investor group prior to the upcoming FDA panel meeting. After nine years in the development and clinical stage, we are ready to present our case to the FDA and launch commercial operations outside the United States," said Jim Bullock, President & CEO of Atritech. "We also look forward to the presentation of the PROTECT AF trial results this weekend at the ACC. Our results would be of significant interest to any patient with atrial fibrillation currently on warfarin therapy." added Bullock.
The PROTECT AF results will be unveiled at the Late Breaking Clinical Trial session during the I2 Summit Scientific Meeting at 8:30 am on March 28, 2009. The I2 Summit is part of the Annual Meeting of the American College of Cardiology being held March 28 - 31 in Orlando, Florida. The Company will also be exhibiting at booth #2857.
About Atritech
Atritech is privately held and based in Plymouth, Minnesota. Major investors in Atritech include SplitRock Partners, Prism Venture Partners, Thomas McNerney Partners, Tullis-Dickerson Partners, The Vector Group (VGR:$13.31,00$-0.05,00-0.37%) , Thoma Cressey Funds, SightLine Funds and Affinity Capital. For more information, visit www.atritech.net.
About Thomas, McNerney & Partners
Thomas, McNerney & Partners is a health care venture capital firm with approximately $600 million under management, focused on investing in life science and medical technology companies at all stages of development. In addition to helping entrepreneurs launch companies with seed and early-stage funding, the firm provides growth capital to emerging companies to advance clinical development or for product commercialization. Thomas, McNerney & Partners also is involved in spinning out products and divisions from major medical device and pharmaceutical companies, consolidating companies through roll-up strategies and participating in structured financings for public companies, as well as recapitalizations. The firm is targeting investments in the pharmaceutical, medical device, biotechnology and diagnostic sectors and in other areas utilizing medical technology innovation. The firm has offices in Stamford, Minneapolis and San Francisco.
SOURCE Atritech, Inc.
excellent ----- GLTY !!
Yeah, set it up to DRIP. For tax purposes, had to max out my Simple IRA for 2008. First time I've bought an individual stock for it. Most is spread out between 5ive funds.
Everyone has their own ballgame....and that's good ---- but, if you can........
REINVEST all dividends / stock premiums BACK into the stock.
Over time ---- you will wake up one morning and say HOLY SHIT BATMAN......I'm RICH !!!!!!!!!
Been watching it for months. A few weeks ago I had set a date to get in by. Relying on memory failed me. Should have marked the calendar. :~(
Waaaaaay too many distractions nowadays.....
I'll keep adding as long as they keep paying. :~)
WSJ: Commercial property faces crisis
The Wall Street Journal reports commercial real-estate loans are going sour at an accelerating pace, threatening to cause tens of billions of dollars in losses to banks already hurt by the housing downturn. The delinquency rate on about $700 bln in securitized loans backed by office buildings, hotels, stores and other investment property has more than doubled since September to 1.8% this month, according to data provided to The Wall Street Journal by Deutsche Bank AG. While that's low compared with the home-mortgage delinquency rate, it's just short of the highest rate during the last downturn early this decade. Some experts say it now looks as if the current commercial real-estate slump will rival or even exceed the one in the early 1990s, when bad commercial-property debt played a big role in dragging the economy into a recession. Foresight Analytics estimates the U.S. banking sector could suffer as much as $250 bln in commercial real-estate losses in this downturn. The research firm projects that more than 700 banks could fail as a result of their exposure to commercial real estate. Commercial property may not be hit as hard as many fear if the economy pulls out of recession more quickly, driving up rents and occupancy rates. And greater availability of financing -- a key goal of the Obama administration -- could lift property values.
Altria, R.J. Reynolds Win Verdict in Florida Suit (Update1)
By Bob Van Voris
March 25 (Bloomberg) -- Altria Group Inc.’s Philip Morris USA unit and R.J. Reynolds Tobacco Co. said they won a verdict in a wrongful-death lawsuit filed on behalf of a Florida smoker.
A state court jury in St. Petersburg, Florida, found the two biggest U.S. cigarette makers not liable in the case yesterday. The verdict is the first defense win in a so-called “post-Engle” tobacco suit in Florida.
The case is the third of its kind to be tried since the Florida Supreme Court in 2006 ruled that smokers couldn’t sue as a class on behalf of smokers statewide. The court said smokers could sue individually and extended the time for them to do so. Thousands of such cases are pending across Florida.
“The jury reached the correct result and determined that the plaintiff failed to meet the criteria established by this particular court to prevail at trial,” Murray Garnick, Altria Client Services senior vice president and associate general counsel, said in a statement.
The Florida Supreme Court ruling, in a class-action suit headed by a Florida smoker named Howard Engle, upheld a series of factual findings in the case, and said they would apply in all of the individual suits filed by smokers who were part of the Engle class.
Yesterday’s verdict follows an $8 million verdict against Philip Morris in February and a $700,000 verdict against Vector Group Ltd.’s Liggett Group unit earlier this month. Both companies said they planned to appeal.
‘Strong Defenses’
“Their verdict demonstrates that despite the flawed decision of the Florida Supreme Court to allow these cases to proceed in this fashion, we have strong defenses to them and we will continue to defend ourselves vigorously,” J. Jeffery Raborn, an R.J. Reynolds vice president and assistant general counsel, said in a statement today.
Altria, based in Richmond, Virginia, rose 5 cents to $17.27 in New York Stock Exchange composite trading. R.J. Reynolds, based in Winston-Salem, North Carolina, climbed 91 cents to $38.05.
The case is Gelep v. R.J. Reynolds and Philip Morris USA, 98-6584, Florida 6th Circuit Court (St. Petersburg).
To contact the reporter on this story: Bob Van Voris in New York at rvanvoris@bloomberg.net.
Last Updated: March 25, 2009 16:48 EDT
Good one to pull up every now and then.........
http://www.reuters.com/finance/stocks/keyDevelopments?symbol=VGR.N×tamp=20090309211300&rpc=66
Vector Group Ltd. News
09.04.2008
VECTOR GROUP DECLARES QUARTERLY CASH DIVIDEND
Grants Shareholders Additional 5% Stock Dividend
MIAMI, FL, September 4, 2008 – Vector Group Ltd. (NYSE: VGR) today announced that it has declared a regular quarterly cash dividend on its common stock of $0.40 per share. Additionally, the Company declared its regular annual stock dividend of 5%. Both the quarterly cash and the annual stock dividends are payable on September 29, 2008 to holders of record as of September 19, 2008.
Vector Group is a holding company that indirectly owns Liggett Group LLC, Vector Tobacco Inc. and New Valley LLC. Additional information concerning the company is available on the company’s website, www.VectorGroupLtd.com.
# # #
Contact:
Paul Caminiti/Carrie Bloom/Jonathan Doorley
Sard Verbinnen & Co
212/687 - 8080
http://www.vectorgroupltd.com/newsArticleGroup.asp?pvNewsId=223
I believe it is safe...and, hope it actually grows a bit as things pick back up.
And yes, always try to make the BUYS in advance of dividend payment ex-div. date!!!
That is 'especially' critical in the upcoming quarter (go to website and view dividend payment history) in which you will get the REGULAR DIV. PAYMENT /// PLUS 5% additional share amount ---- that one is CRITICAL !!
With price stabilization/appreciation, dividend payments and 5% addtl. shares added each year ----- this is pretty much a NO BRAINER !
Only thing we must keep an eye on is the RE business....but, so far it seems to be OK.....not great, but OK!
Damn! Just noticed I missed the last dividend by 5 days..... I knew there was a reason I'd been sorta watching this...
Just picked up a few shares. Do you think the HUGE divvy is safe for a while?
Legislation to put tobacco under FDA control expected in Congress-NY Times 03/02 07:30 AM
The House Committee on Energy and Commerce is expected to Wednesday vote on legislation that would put tobacco under FDA control; the legislation may be passed along to the president soon. The legislation would set up a new office in the FDA to focus on tobacco. It would be financed by industry fees and would allow additional restraints on sales and marketing to young people, including stronger warning labels. The legislation does not ban cigarettes or menthol. Philip Morris (PM:$33.47,00$-0.74,00-2.16%) reportedly supports the proposal, although other cigarette makers oppose it. [Reference Link]:[http://www.nytimes.com/2009/02/28/business/28tobacco.html?_r=1&ref=todayspaper]
VGR ~~~ Press Release Source: Vector Group Ltd.
Vector Group to Host Fourth Quarter and Full Year 2008 Conference Call
Monday March 2, 8:00 am ET
MIAMI--(BUSINESS WIRE)--Vector Group Ltd. (NYSE: VGR - News) will conduct a conference call and webcast to discuss its fourth quarter and full year 2008 results on Tuesday, March 3, 2009 at 11:00 a.m. (ET).
Investors can access the call by dialing 800-859-8150 and entering 38114393 as the conference ID number. The call will also be available via live webcast at www.vcall.com. Webcast participants should allot extra time before the webcast begins to register.
A replay of the call will be available shortly after the call ends on March 3, 2009 through March 17, 2009. To access the replay, dial 877-656-8905 and enter 38114393 as the conference ID number. The archived webcast will also be available at www.vcall.com for 30 days.
Vector Group is a holding company that indirectly owns Liggett Group LLC, Vector Tobacco Inc., and New Valley LLC. Additional information concerning the company is available on the company’s website, www.VectorGroupLtd.com.
Contact:
Sard Verbinnen & Co
Carrie Bloom/Jonathan Doorley, 212-687-8080
--------------------------------------------------------------------------------
Source: Vector Group Ltd.
Sector picking up steam a bit......but, hard for anything to "swim against the tide" right now !!
Love that DIVVY while we wait for the worm to turn though !!!!
NICE!!!! I can use it!!!Thank you, hope all is well on your end.
VGR = 11% dividend yield !!!
VGR -0.51 -3.55% 233,086 13.84 VECTOR GROUP LTD - - 2008-09-17 2008-09-29 1.60 10.60%
Tobacco Stocks: Not for the Nervous Investor
10/09/08 - 09:01 AM EDT
, BTI , NO , PM (Action Alerts PLUS PICK) , RAI , VGR
http://www.thestreet.com/_yahoo/newsanalysis/ratings/10441472.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
For more stories like this, check out TheStreet.com Ratings section.
In a turbulent investment climate such as this, one of the oldest hedges against economic downturns emerges -- it also happens to be among the most maligned of businesses. Smokes. But those seeking relatively high dividend yields by investing in tobacco stocks should be aware that their returns come at a price.
Tobacco products, because of their addictive qualities, remain a relatively unscathed market even in uncertain economic times. And with the market ups and downs, these businesses could even see an increase in sales from smoking clientele looking to quell their nerves.
However, the steady cash returns from tobacco stocks come with some tradeoffs:
They offer limited growth prospects, especially as tobacco customers die off (as smokers tend to suffer greater death rates actuarially than nonsmokers).
These stocks represent investments in what some refer to as a "sin" sector, eschewed by "socially responsible" portfolio managers.
These stocks' companies stand in the crosshairs of some former-customers-turned-angry-plaintiffs as well as tax-hungry legislators.
Anti-smoking forces have been taking aim at retail distribution of cigarettes as well as venues for smoking and advertisements that they claim are targeting youth to replace the base of mature smokers.
These built-in risks, not to mention the currently treacherous stock market, should be enough to compel any investor interested in investing in tobacco stocks to first consider carefully their investment.
Still, if an investor is unbothered by moral arguments against tobacco and is willing to test the roily investment waters, some arguments exist for considering tobacco stocks. While growth in tobacco usage in the U.S. has stalled, possibly forever, the industry traditionally has been considered extremely resistant to economic downturns.
The resistance by smokers to forgo their tobacco products could provide an island of certitude in the current economic terra incognita. In addition, investors could decide that steady dividend checks from tobacco companies might help smooth the volatility in their other holdings.
Despite all of the negatives, tobacco remains as a large industry with a tenacious ability to survive the persistent anti-smoking onslaught. And the anti-tobacco forces recently took a hit when U.S. Supreme Court justices were said to edge closer to the industry's side in a case involving state lawsuits over deceptive advertising of "light" cigarettes.
Cigarettes and tobacco products expand beyond Philip Morris' (PM Quote - Cramer on PM - Stock Picks) iconic Marlboro man, however. The following table highlights a pair of stocks with dividend yields of more than 7% and the highest grades from TheStreet.com Ratings for members of the tobacco industry.
First up is Vector Group (VGR Quote - Cramer on VGR - Stock Picks), a holding company engaged in the manufacture and sale of cigarettes in the U.S. via its Liggett Group subsidiary. The firm developed and markets the low-nicotine and nicotine-free Quest cigarette products through its Vector Tobacco division.
Founded in 1873 as Liggett & Myers, Vector's Liggett Group is the fifth-largest manufacturer of cigarettes in the U.S. in terms of unit sales. Liggett makes Pyramid, Jade and Eve 120's branded-discount products as well as Liggett Select in the deep-discount category. The company also produces a number of private-label and distributor-exclusive brands for a total of more than 240 brand styles.
Relatively small by tobacco-company standards with a market capitalization of just $1.06 billion, Vector's stock yields about 9.37%.
Next up is Reynolds American (RAI Quote - Cramer on RAI - Stock Picks), a holding company whose subsidiaries include R.J. Reynolds Tobacco, Scott Tobacco and various other companies.
Shares of Reynolds, which has a total market capitalization of $13.42 billion and a dividend yield of 7.43%, was recently trading at less than 10 times next year's projected earnings.
Reynolds' largest operating segment, RJR Tobacco, manufactures Camel, Kool, Pall Mall, Doral, Winston, Salem, Misty and Capri cigarette brands. Those brands, and its other brands, including Salem, Misty and Capri, are manufactured in a variety of styles and marketed in the U.S. to meet a range of adult-smoker preferences. RJR Tobacco also manages contract manufacturing of cigarettes and tobacco products through arrangements with British American Tobacco (BTI Quote - Cramer on BTI - Stock Picks).
RAI's Conwood division is a smokeless-tobacco manufacturer whose primary products include moist snuff brands, Grissly and Kodiak. Conwood also distributes a variety of other tobacco products, including Winchester and Captain Black little cigars.
The unique and controversial nature of the tobacco industry makes the standard warning to carefully consider the appropriateness of it as an investment all the more crucial. As with any investment, you can lose money. So, please remember to carefully monitor your holdings and/or place stop-loss orders to help protect you from sudden moves against your positions.
Two Tobacco Stocks: Risk vs. Reward
Vector Group Reynolds American
Ticker VGR RAI
Reward Grade A A-
Risk Grade B- C-
Overall Grade B B
Recommendation Buy Buy
Market Cap ($Billion) 1.06 13.62
EPS (Current Year) 1.00 4.60
EPS (Next Year) 1.03 4.86
Price/Book 11.9 1.8
Price/Sales 2.9 1.6
P/E (Current Year) 17.0 10.5
P/E (Next Year) 16.6 9.9
Dividend Yield (%) 9.4 7.4
Source: TheStreet.com Ratings and company reports.
For more information, check out an explanation of our ratings.
REMINDER!!
Vector Group Ltd. News
09.04.2008
VECTOR GROUP DECLARES QUARTERLY CASH DIVIDEND
Grants Shareholders Additional 5% Stock Dividend
MIAMI, FL, September 4, 2008 – Vector Group Ltd. (NYSE: VGR) today announced that it has declared a regular quarterly cash dividend on its common stock of $0.40 per share. Additionally, the Company declared its regular annual stock dividend of 5%. Both the quarterly cash and the annual stock dividends are payable on September 29, 2008 to holders of record as of September 19, 2008.
Vector Group is a holding company that indirectly owns Liggett Group LLC, Vector Tobacco Inc. and New Valley LLC. Additional information concerning the company is available on the company’s website, www.VectorGroupLtd.com.
# # #
Contact:
Paul Caminiti/Carrie Bloom/Jonathan Doorley
Sard Verbinnen & Co
212/687 - 8080
http://www.vectorgroupltd.com/newsArticleGroup.asp?pvNewsId=223
Tobacco companies decline along with market
Tuesday September 16, 10:18 am ET
Tobacco makers' shares fall amid investor concern about financial sector
NEW YORK (AP) -- Shares of tobacco companies dropped Tuesday, following the general market down for the second day as investors fretted about the financial sector.
Investors have concerns about insurer American International Group Inc. and are awaiting the Federal Reserve's decision on interest rates.
In the first half-hour of trading, the Dow fell about 49 points, after a 504-point decline on Monday, its largest drop since 2001.
In the tobacco sector, Altria Group Inc. fell 27 cents to $20.64.
Reynolds American Inc. fell 8 cents to $48.68.
UST Inc. fell $1 to $67.
Philip Morris International fell 45 cents to $52.37.
I like it!!!
Vector Group Ltd. News
09.04.2008
VECTOR GROUP DECLARES QUARTERLY CASH DIVIDEND
Grants Shareholders Additional 5% Stock Dividend
MIAMI, FL, September 4, 2008 – Vector Group Ltd. (NYSE: VGR) today announced that it has declared a regular quarterly cash dividend on its common stock of $0.40 per share. Additionally, the Company declared its regular annual stock dividend of 5%. Both the quarterly cash and the annual stock dividends are payable on September 29, 2008 to holders of record as of September 19, 2008.
Vector Group is a holding company that indirectly owns Liggett Group LLC, Vector Tobacco Inc. and New Valley LLC. Additional information concerning the company is available on the company’s website, www.VectorGroupLtd.com.
# # #
Contact:
Paul Caminiti/Carrie Bloom/Jonathan Doorley
Sard Verbinnen & Co
212/687 - 8080
http://www.vectorgroupltd.com/newsArticleGroup.asp?pvNewsId=223
Only wish I had as much UST that I once had.
Details of Altria Group's acquisition of UST
Monday September 8, 3:39 pm ET
By The Associated Press
Details of Altria Group's acquisition of smokeless tobacco company UST
Altria Group Inc., owner of Philip Morris USA, plans to buy UST Inc., the maker of Skoal and Copenhagen, for $10.4 billion to boost its ability to sell smokeless tobacco products.
WHY: Americans are buying 3 percent to 4 percent fewer cigarettes, by volume, per year. Sales of smokeless tobacco products are rising by 5 percent to 6 percent.
OTHER FACTORS: Richmond, Va.-based Altria spun off Philip Morris International in March, and is seeking new ways to increase revenue. Its own Marlboro brand smokeless products have been disappointing so far, analysts say.
CONSOLIDATION: The global tobacco industry has been consolidating. Imperial Tobacco Group PLC bought Franco-Spanish company Altadis in January; former Altria subsidiary Philip Morris International is buying Canadian cigarette company Rothmans Inc.; and Reynolds American Inc. bought smokeless company Conwood Co. in 2006.
WHAT NEXT: Analysts believe other potential acquisition targets include Lorillard, which was spun off from the Loews Corp. in June, as well as tobacco leaf producer Universal Corp. and Vector Group Ltd.
Ez2, hope this email finds you well. Yes, I would have to agree. The way this market is, I really don't mind my monsy siting here. Hope all is well and good luck with all investing. King
Darn, we had a little run going there for awhile.
I sure wish they'd find something to help break through
the resistance ----- if we can get (and hold) a bit north
of $20 --- I think we run strong into/beyond Q4 !!
Critical call to get some guidance.............
Press Release Source: Vector Group Ltd.
Vector Group to Host Second Quarter 2008 Conference Call
Monday August 11, 8:00 am ET
MIAMI--(BUSINESS WIRE)--Vector Group Ltd. (NYSE: VGR - News) will conduct a conference call and webcast to discuss its second quarter 2008 results on Tuesday, August 12, 2008 at 11:00 a.m. (ET).
Investors can access the call by dialing 800-859-8150 and entering 64447522 as the conference ID number. The call will also be available via live webcast at www.vcall.com. Webcast participants should allot extra time before the webcast begins to register.
A replay of the call will be available shortly after the call ends on August 12, 2008 through August 26, 2008. To access the replay, dial 877-656-8905 and enter 64447522 as the conference ID number. The archived webcast will also be available at www.vcall.com for 30 days.
Vector Group is a holding company that indirectly owns Liggett Group LLC, Vector Tobacco Inc., and New Valley LLC. Additional information concerning the company is available on the company’s website, www.VectorGroupLtd.com.
Contact:
Sard Verbinnen & Co
Carrie Bloom/Jonathan Doorley, 212-687-8080
cbloom@sardverb.com
--------------------------------------------------------------------------------
Source: Vector Group Ltd.
Vector Group Ltd (VGR) holdings reduced by Vanguard Group Inc
http://www.mffais.com/newsarticles/2008-08-05/2572061-123749.html
House Votes to Regulate Tobacco as a Drug
http://www.nytimes.com/2008/07/31/washington/31tobacco.html?ref=us
VGR.....getting it's sea legs again !!
VGR
Vector Group Ltd (VGR) newly added by Strs Ohio
http://www.mffais.com/newsarticles/2008-07-24/2572061-125344.html
Vector Group Ltd (VGR) newly added by Financial Architects Inc
http://www.mffais.com/newsarticles/2008-07-22/2572061-208938.html
Vector Group: Any Smoke Left in Tobacco?
by: Steve Alexander posted on: July 22, 2008
Vector Group (VGR) is structured as a holding company, with two distinct businesses. The first, and by far the majority of revenue is the sale of discount cigarette brands such as Liggett Select, Grand Prix, Pyramid, Eve, and USA. Also, Vector has designed and marketed a nicotine free cigarette called Qwest. The second business is a residential real estate company, Douglas Elliman Realty LLC, which operates in the New York metropolitan area and is the biggest concern of it's type there. Vector Group owns a 50% stake in Douglas Elliman.
From the grades it's obvious that Vector Group is not a favorite of MagicDiligence. There are a few positives to note. Discount cigarettes have been about the only sector of this market to experience volume growth in the last decade, as premium brands are being priced out of the range of lower income smokers. Also, the 1998 litigation settlements with 46 states requires only the 3 largest cigarette makers to pay the costs. Vector's Liggett Group is 5th, and as a byproduct has gained a valuable cost advantage against bigger makers like Philip Morris (PM) and RJ Reynolds. The "big boys" are handcuffed by these costs if they decide to compete in the deep discount cigarette market. Vector Group pays a huge dividend over 9% currently, another positive.
However, the negatives clearly outweigh the positives. Cigarette sales in the U.S. have been on a steady decline since the last decade, and with more and more states enacting indoor smoking bans and hiking "sin" taxes, it's likely this trend will continue for the foreseeable future. Cigarette volume growth is exclusively overseas, and Vector only operates in the U.S. The discount segment of any market is a difficult one, with price the only factor in sales: Vector Group has no brand loyalty to fall back on and hence no moat. There are fundamental issues as well. The dividend yield is propped up with debt. Free cash flow only covers about 80% of it. Speaking of debt, Vector Group makes extensive use of it, and coverage ratios have hovered around 3 times operating earnings, a very tight window (debt-to-equity is a horrifying 3.5!). Lastly, the company has a history of restructuring, side businesses, and a confusing set of financial statements. If you cannot understand a business, it's probably not a good investment for you.
With so many other quality companies on the Magic Formula screen, MagicDiligence recommends steering clear of Vector Group.
http://seekingalpha.com/article/86197-vector-group-any-smoke-left-in-tobacco?source=yahoo
Researchers: Menthol used to attract young smokers
Thursday July 17, 8:31 am ET
By Kevin Freking, Associated Press Writer
Report: Tobacco industry manipulated menthol levels to attract young and keep older smokers
WASHINGTON (AP) -- Tobacco companies deliberately changed the menthol levels in cigarettes depending upon whom they were marketing them to -- lower levels for young smokers who preferred the milder brands and higher levels to "lock in lifelong adult smokers," researchers at the Harvard School of Public Health concluded.
The researchers reviewed industry documents dating back decades on product development and on strategic plans for menthol products.
They said that the tobacco companies researched how controlling menthol levels could increase sales among specific groups. Milder brands with lower menthol levels appealed to younger smokers. The milder products were then marketed to young consumers.
One document from R.J. Reynolds noted that all three major menthol brands "built their franchise with YAS (younger adult smokers) ... using a low-menthol product strategy. However, as smokers acclimate to menthol, their demand for menthol increases over time."
In 1987, R.J. Reynolds marketed low-level menthol varieties to persuade consumers to switch from regular brands and to recruit new, young smokers, noting: "First-time smoker reaction is generally negative. ... Initial negatives can be alleviated with a low level of menthol."
Philip-Morris USA used a two-prong strategy to increase Marlboro's share in the menthol market by targeting young adults and older smokers, the researchers concluded. Marlboro Milds were introduced nationally in 2000 and became popular among young smokers. The entry of that product coincided with an increase in the menthol level of the regular Marlboro Menthol brand intended for older smokers. The milds were responsible for almost 80 percent of the company's menthol-category growth that year.
"For decades, the tobacco industry has carefully manipulated menthol content not only to lure youth but also to lock in lifelong adult customers," said Howard Koh, a co-author of the paper.
William Phelps, a spokesman for Philip Morris USA, the nation's largest tobacco company, said the study's conclusions were not supported by the facts cited. He said the study includes excerpts from several marketing documents. None talked about targeting youth or adolescents.
"At our company, our marketing goal is to find way to effectively and responsibly connect brands with adults who smoke," Phelps said. "Those brands are designed to meet the diverse preferences of adults who smoke. What we disagree with are the authors' conclusion that menthol levels were manipulated to gain market share among adolescents."
R.J. Reynolds said it agrees that individuals select their preferred menthol levels to create desired sensory effects while smoking, and that there is a broad range of menthol levels among popular brands. But the company said all of its products are made for and marketed to adults.
"The bottom line is minors should never use tobacco products and adults who do not use or have quit using tobacco products should not start. That is a guiding principle of the company," the company said in a statement. "It would appear this report is simply an effort to push support for federal regulation of the tobacco industry, not a scientific review of the menthol category."
Gregory Connolly, one of the report's co-authors, said the tobacco industry was careful not to talk about adolescents in the documents he reviewed, mostly from the '80s and '90s.
"They talk about young smokers. For me, that's just a euphemism for going after adolescent, first-time smokers," Connolly said.
Congress is considering legislation to give the Food and Drug Administration the power to regulate tobacco. And while the bill would ban fruit and candy flavorings, it would allow the continued sale of menthol-flavored brands. That has led to sharp criticism from some smoking control advocates, who argue that menthol lures some people to try cigarettes and helps keep others from trying to quit. The advocates are pressing for an amendment to ban menthol, an additive that gives cigarettes a mint flavor.
But Phelps said that would be a mistake. "We don't believe it's right to ban a particular ingredient because some people prefer the flavor that ingredient provides," he argued.
Philip Morris is the only one of the major tobacco companies supporting FDA regulation, and its backing for the legislation is considered important in gaining passage.
Phelps said the bill, as currently written, would allow the FDA to ban menthol if the agency determines through scientific investigation that the flavoring increases the harm associated with smoking.
Brands marketed as menthol cigarettes make up about 27 percent of the U.S. cigarette market. While overall cigarette sales have declined, sales of menthol cigarettes have been stable in recent years.
Data analyzed in the study indicates that significantly more adolescents and young adults smoke menthol cigarettes than older people. It also emphasizes that black smokers in the United States smoke menthol cigarettes, 70 percent as compared with about 30 percent of white smokers.
"We know that menthol cigarettes are disproportionately marketed to the African-American community and that starting at a young age, menthol cigarettes are the product of choice for black smokers," Dr. Cheryl G. Healton, president and chief executive officer of the American Legacy Foundation, which helped fund the study. "This research confirms that the industry is intentionally manipulating these products in order to get new smokers hooked."
The foundation describes its mission as building a world where young people reject tobacco and anyone can quit. The National Cancer Institute also funded the research.
Associated Press writer Ricardo Alonso-Zaldivar contributed to this report.
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