Email of the day on tobacco stocks and accelerating trends:
Comment of the Day

November 14 2018

Commentary by Eoin Treacy

Email of the day on tobacco stocks and accelerating trends:

As you rightly point out defensive stocks tend to outperform towards the end of the cycle, especially those that consistently pay a high dividend. I, like I suspect others in the collective hold BATs shares. Yesterday the price got hammered on a rumour that the FDA is proposing to ban menthol cigarettes. Wonder if you have any thoughts on what has happened ? Any crumbs of comfort to be had ?

Eoin Treacy's view

Thank you for this question and I suspect you are not alone in holding a share that has accelerated lower of late. At The Chart Seminar yesterday for example we had a discussion about British America Tobacco exhibit is accelerating downtrends. As you will remember acceleration is a trend ending characteristic;, albeit of unknown duration.

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