SOURCE: Five Star Equities

Five Star Equities

February 09, 2012 08:20 ET

Star Scientific and Reynolds American Focus on New Tobacco Trends

Five Star Equities Provides Equity Research on Star Scientific & Reynolds American

NEW YORK, NY--(Marketwire - Feb 9, 2012) - Tobacco stocks have been relatively flat in 2012 as the industry continues to negotiate strict regulations pushed by governments across the world. Tobacco manufacturers continue to focus more attention on their respective smokeless tobacco segments to offset the decline in cigarette demand. Thus far, this has benefitted margins industrywide. Five Star Equities examines investing opportunities in the tobacco industry and provides equity research on Star Scientific, Inc. (NASDAQ: CIGX) and Reynolds American, Inc. (NYSE: RAI). Access to the full company reports can be found at:

www.fivestarequities.com/CIGX
www.fivestarequities.com/RAI

Global Industry Analytics, Inc. (GIA) recently issued a report, "Tobacco: A Global Outlook," arguing that dropping consumption of tobacco products across developed economies has prompted tobacco companies to augment their focus on developing markets, "which have been exhibiting positive trends." Moreover, GIA says that new Low Tar Cigarettes are expected to do well in the market with the industry being optimistic to "sail through" the disturbing phase.

Christopher Growe, an analyst at Stifel Nicolaus & Co. in St. Louis, recently told Bloomberg that he projects industrywide per-share earnings growth of 10 percent, helped by stronger demand for smokeless tobacco. In addition, Growe says U.S. cigarette makers will increase prices by about 15 cents a pack this year to mute shipment declines of about 3.5 percent.

Five Star Equities releases regular market updates on the tobacco industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.fivestarequities.com and get exclusive access to our numerous stock reports and industry newsletters.

Star Scientific is engaged in the development, implementation and licensing of its technology for the curing of tobacco so as to prevent the formation of carcinogenic toxins present in tobacco and tobacco smoke, primarily the tobacco-specific nitrosamines. Last month shares of the company jumped after the maker of smokeless and dissolvable tobacco products said a federal court referred its patent infringement case with a unit of Reynolds American, Inc. to a magistrate judge for possible settlement.

According to Reuters, the lawsuit concerns two of Star Scientific's patents on tobacco-leaf curing methods that claim to prevent the formation of cancer-causing chemicals during the process.

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:
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