Next Day FREE Home Delivery
*In All Metro City (Min Purchase Rs.1500/-)*
SUPER SUNDAY - Today Get 12% OFF
Use Coupon Code - SUN12
Helpline: 84484 44658
Happy to Help You!

Limited Time Offer - Ending Soon - Hurry Up!


VAPING Destroying Cigarette Industry, Traders Say

A TV money expert has highlighted how vaping is destroying the cigarette industry after last week’s drastic drop in shares of key tobacco stocks.

‘Mad Money’ host Jim Cramer has spoken out about the huge shifts within the long-standing cigarette industry after it was “obliterated” on Wall Street.

He went further by urging viewers not to invest in the tobacco market after investors realized it was facing an “existential threat” from its vape competition.

Speaking on his CNBC show, Cramer – a former hedge fund manager – addressed the shock share price drop in Altria, the parent company of Marlboro-makers Philip Morris International, by 16 per cent, which was blamed on rapidly declining cigarette volumes.

Billed as its “worst day” in a decade, Altria also suffered after being downgraded from “buy” to “neutral” on the stock market by Citigroup analyst Adam Spielman following its weak earnings report.

“We saw the market’s sudden recognition that the cigarette industry seems to be in serious trouble, disrupted by the rise of vaping,” the Mad Money host explained on Monday.

“Over the course of three short days, the tobacco stocks were bent, they were spindled and they were mutilated by the realization that electronic cigarettes have become a serious threat to the old-school cigarette makers.”

And the situation for the cigarette industry was likely to get worse, he warned with the rise of popular vaping products like JUUL reporting increased sales.

While the market used to be relatively predictable with cigarette volumes consistently dropping 3 to 4 per cent a year – and the tobacco giants simply increasing prices to make up the shortfall – the explosion of vaping is now a grave threat to the tobacco business.

JUUL is already “beginning to disrupt the U.S. cigarette industry” according to Speilman who said it was one of the reasons for his Altria downgrade and argued it was likely responsible for a 6 per cent drop in cigarette sales.

Juul Labs, meanwhile, which now controls almost half of the e-cigarette market, is boasting year-over-year sales with a growth of nearly 800 percent in 2017.

Cramer continued: “Morality aside — not easily done, but work with me here — this thing is (JUUL is) selling like crazy and it’s really eating into the tobacco industry in a way that other e-cigs never could.
“According to Nielsen, U.S. cigarette shrank by 6 per cent in the first quarter, substantially worse than expected, and Spielman ascribes the difference to Juul.”

Spielman also didn’t see that selling vape-like products was a solution for the tobacco giants either.
Some cigarette makers, including Altria, have introduced JUUL-like products, but the Citi analyst worried they could sacrifice earnings growth by moving into the low-margin vape pen business.

“While the tobacco companies can get into the vaping business, their own vape pens tend to be money losers,” Cramer explained. “Who would want to swap out of an incredibly profitable business and into one that’s losing money?”

While the headline numbers beat analysts’ estimates, Cramer said “the underlying trends were just plain terrifying,” with total volumes down 2.3 percent and its flagship Marlboro brand down 7 percent overall.
The “Mad Money” host concluded he wouldn’t recommend investing in the tobacco space, adding that he would watch Altria’s earnings report “like a hawk.”

“Bottom line: last week investors realized, practically overnight, that the tobacco industry is facing an existential threat from its vaporizer competitors, led by Juul Labs,” Cramer told his viewers. “And while the group got obliterated last week, I think it could even have more downside.”

Source :-

Leave a Reply

Your email address will not be published. Required fields are marked *

First Order Get Flat Rs. 100 OFF, Use Coupon code - QUITSMOKING100 Dismiss

AIO BOX kit + any 5 smoka Eliquids
Bought by Rajan
about 1 day ago

AIO Coil (0.6 ohms) (for AIO device only)
Bought by mohammad
about 1 day ago

Cigar 3 flavor liquids

Best Selling - Cigars Deal Pack of 3 smoka eLiquids
Bought by Aswinikumar
about 1 day ago

Buy best quality Lite 40S Kit + any 5 smoka E-liquids in india

Lite 40S kit + any 5 smoka E-liquids
Bought by Amit
about 1 day ago

tobacco 5 flavor liquids

Best Selling -Tobacco Flavors Deal Pack of 5 smoka eLiquids
Bought by Divyant
about 1 day ago

Age Verification
& Legal Ageerement



By clicking 'Yes Agreed, I can Enter', you acknowledge that you are above age of 18, if not please leave.

Order from banned state will not be accepted & fulfilled

We Help smokers to Quit Smoking & Live Healthy



"We don't sale, promote or advertise any kind of tobacco products"

Copy your coupon code for this Order - FSC1206

Hey Your Surprised Offer!



*Only Valid for curent cart order (Minimum Order of Rs. 750/-)