If you are wondering what kind of investment is viable in 2018, consider the tobacco makers, especially those dealing in the now popular electronic cigarettes.
The rising demand for alternative cigarettes is giving an edge to big tobacco makers, such as British American Tobacco and Philip Morris. New entrants like O2Pur are also reaping from increased sales of their e-cigarettes and vapors.
Tobacco makers such as BAT, Reynolds-American, Altria and Philip Morris are trading favorably on the NYSE since the beginning of the year. There are several factors for this, but their investment in the now popular e-cigarettes and vapors such as O2Purseems to be a major contributor.
When BAT launched the heat-not-burn technology (HNB), it first introduced it into the Japanese market. Since the introduction of iFuse glo, the company’s HNB product, its shares have yielded a 5.4% increase in price in the Japanese Stock Exchange.
The product is available in 12 countries, and in 2018, the company plans to introduce it in another dozen countries. This will lead to an increase in the price of the company’s share, as investor confidence in its performance will rise.
More people will seek to invest in the shares, and this increase in demand will raise the price of the shares. O2Pur hopes to continue to rely on the positive outlook to gain in the market.
Once the buyout plan between BAT and Reynolds-America is concluded, BAT will be the largest tobacco maker ahead of Philip Morris. The deal will also increase the company’s cigarettes alternatives in the market.
Reynolds-American had taken an early lead in e-cigarettes technology, and it had made a $135 million investment in the technology as early as 2012. This investment was made by buying Blu e-Cig, the leading brand in the market at the time.
However, when purchasing Lorillard, Reynolds-America opted to offload the brand to Imperial Tobacco. O2Pur though is stock that you may want to hold onto.