Daily Market Blog: Tobacco Gets Smoked

20-APR-18

Market Scorecard



It is no secret that 'Team Vestact' is not a fan of tobacco stocks. We even had a short on British American Tobacco for a while, let's just say that we got smoked. Our view has been that smoking is on the way out, and at some point, the strong cash flows from these companies will disappear. When will that day happen? I am not sure. When it does the exit will not be big enough for everyone. Yesterday Phillip Morris dropped 16% due to disappointing sales numbers.

Overall tobacco stocks have had a tough 2018. I see that Goldman Sachs moved Phillip Morris off of their conviction buy list, but still has the stock listed as a buy. I'm happy to watch the share price action from the sidelines.

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Stocks which we currently recommend

AdvTech are an African education group.

Alphabet (Google) is the world's biggest online advertising platform.

Amazon.com is the world's leading online retailer.

Amgen is a biotech company focussed on blood and cancer therapies.

Apple is the global leader in tablet and smartphone technology.

Aspen is a rising global star in the pharmaceutical industry.

Booking Holdings is the biggest online travel booking service in the world.

Bidcorp is a foodservices company with operations mostly in Asia and Europe.

Brait owns fashion, retail and health club assets.

Cerner provides IT solutions in the healthcare industry.

City Lodge is a mid-priced hotel group in urban areas of Africa.

Curro is an independent education provider in South Africa.

Discovery is a technology-driven healthcare administrator and life insurer.

Facebook is the dominant global social media platform.

Famous Brands is SA's largest quick-service restaurant group.

Johnson & Johnson is the world's largest consumer health and pharma company.

JP Morgan is the biggest bank in the USA

L'Oreal is a world leader in the manufacturing and sale of beauty products.

Long4Life is an investment company targeting the health and wellness sector.

Luxottica is the world's largest branded sunglass maker and retailer.

Mr. Price is a fast fashion apparel and home retailer.

MTN Group is an emerging markets mobile telecoms giant.

Mediclinic owns hospitals in SA, the UAE, the UK and Switzerland.

Naspers owns digital TV, internet, gaming and ecommerce businesses.

Nestle is a leading global food and beverages manufacturer.

Netflix is a TV & movie content creator & has a global, content streaming network.

Nike is a designer and retailer of running shoes and other sporting equipment.

NVIDIA is the world's leading chip maker for AI, Cars, Datacenters & Gaming.

Richemont owns the finest luxury brands like Cartier and Van Cleef & Arpels.

Starbucks is a roaster and retailer of coffee and fantastic foods.

Stryker makes hip and knee joint replacements and hospital beds.

Tesla is the world leader in electric vehicles and batteries.

Tiger Brands is a basic and branded food producer, expanding through Africa.

Visa is a global payments technology company.

Vodacom is a South Africa-based communications provider.

Wells Fargo is the biggest retail and commercial bank in the USA.

Woolworths the leading organic food & clothing retailer in the Southern Hemisphere.

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