Home > Boards > Free Zone > User's Groups > Mega Cap Ideas

Reynolds American - >>> These 3 Companies Could

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
gfp927z Member Profile
Followed By 70
Posts 25,705
Boards Moderated 71
Alias Born 03/22/05
160x600 placeholder
Belgium Business Confidence Falls in September
Business sentiment in Belgium declined in September for the second consecutive month, after reaching a record high level in July.
Top Company News of the Day
Wheat Climbs on Indications of Tighter Supply -- Daily Grain Highlights
Front Month Nymex Natural Gas Rose 0.69% This Week to Settle at $5.1400 -- Data Talk
Front Month Nymex RBOB Gasoline Rose 0.75% This Week to Settle at $2.1875 -- Data Talk
Costco On Pace for Record High Close -- Data Talk
United Airlines Fined $1.9 Million for Violating Transportation Department's Tarmac-Delay Rule
California Attorney General Appeals Purdue Pharma's Sackler Settlement
2Q GDP Still Seen +6.6% -- Data Week Ahead
Italy to Launch Three New Government Bonds in 4Q
DAX Ends the Week 0.27% Higher at 15531.75 -- Data Talk
CAC 40 Index Ends the Week 1.04% Higher at 6638.46 -- Data Talk
STOXX Europe 50 Index Ends the Week 0.82% Higher at 3550.35 -- Data Talk
EURO STOXX 50 Index Ends the Week 0.67% Higher at 4158.51 -- Data Talk
STOXX Europe 600 Index Ends the Week 0.31% Higher at 463.29 -- Data Talk
FTSE 100 Index Ends the Week 1.26% Higher at 7051.48 -- Data Talk
Nike Down After Revenue Miss, Supply Chain Issues
Kansas City Fed Services Activity Index Slips But Stays Positive in September
VC Daily: Question: What to Make of Efforts in Congress to Lower Drug Prices?
Turkish Lira Falls Near Record Lows After Rate Cut; Norges Bank Raises Rates; Purchasing Managers Point to Slowing in U.S. and Europe
U.S. New Home Sales Rose in August
Rite Aid Expands Partnership With Uber
Salesforce.com on Track for Record High Close -- Data Talk
Nike Down Over 6%, on Pace For Largest Percent Decrease Since June 2020 -- Data Talk
Walgreens Rolls Out More Pfizer Booster Shots
Moderna to Supply Covid-19 Vaccine Doses in Peru
Petrofac Shares Rise on Guilty Plea to Seven Counts of Bribery
WPP to Pay $19 Million to Resolve SEC Charges of Anti-Bribery, Accounting Provisions
gfp927z   Monday, 01/09/17 10:44:30 AM
Re: None
Post # of 27 
Reynolds American - >>> These 3 Companies Could Be Bought in 2017

There's buyout buzz around Reynolds American, GNC, and Michael Kors

Leo Sun

Jan 8, 2017


The stock market's upside potential might seem limited as the major indexes hover near historic highs, but a few stocks could still rise this year on big takeovers. Let's examine three companies that might be acquired soon -

Reynolds American

Reynolds American, the second-largest domestic tobacco maker after Altria, rallied over 20% last year as low fuel prices apparently boosted cigarette sales as people had more money to spend and its acquisition of Lorillard boosted its top-line growth. Reynolds was well-insulated from the strong dollar because it generates most of its revenue domestically, and many investors bought the stock as a dependable dividend play in a low-interest rate environment.

With interest rates set to rise, Reynolds might seem vulnerable as bonds become more attractive income plays. However, Reynolds' trailing price-to-earnings ratio of 15 is much lower than Altria's P/E of 25 and the industry average of 21. Its Newport menthol brand, Vuse e-cigarettes, and "additive-free" Natural American Spirit brand are also the dominant players in their respective markets.

Those qualities make Reynolds an attractive takeover target for bigger tobacco makers. British American Tobacco (NYSEMKT:BTI), which already owns 42% of Reynolds, offered to acquire the rest of the company for $56.50 per share last October. Reynolds rejected the initial offer, fueling speculation that higher bids could follow. That buyout interest, along with Reynolds' ability to keep cutting costs and raising prices to offset weaker shipments, should help it outperform its industry peers this year.


Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
Current Price
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences