Earlier in February we at Election Stocks covered the FDA’s regulation of the tobacco market and considered whether or not it would be beneficial to tobacco companies. Now Christopher Atayan from TheStreet.com writes in correspondence with our own Jeff Miller:

Philip Morris is supporting the FDA regulation of tobacco because they believe it will freeze their market share at the current levels. RJ Reynolds is adamantly against it for practical reasons. I was at a recent RJ Reynolds customer event and they gave a very illuminating presentation on this issue and ramifications. Remember in the event the FDA does get control of tobacco they can oestensibly declare the product off the market any time they want. Or in the case of Lorillard they can declare menthol not an allowed product.That ability to decree an industry and company out of business is a real problem and that is why I would strongly disagree with the Strategas research position.

In other words, the FDA ought to be wary of people bearing gifts.

Last 5 posts by Jeffrey Miller

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