Reynolds American Inc - The American tobacco company and the second largest producer of tobacco products in the United States. Holding includes the RJ Reynolds Tobacco Company, American Snuff Company, Aanta Fe Natural Tobacco Company and Niconovum AB. In 2010, Reynolds sold 28% of cigarettes in the United States.
In all countries of the world are actively struggling with tobacco addiction. Just yesterday in California increased smoking age from 18 to 21 years. In European countries raise excise taxes, and in Russia a few years ago banned tobacco companies to sponsor the event. All the factors point to a continued deterioration of the tobacco companies' affairs, and, consequently, the fall in the price of their shares.
In this situation surprising is the fact that the CFD price on the stock Reynolds American has been steadily increasing throughout the lifetime of the company. April 26 released a report on the corporation income for the 1st quarter 2016, which recorded revenue growth to $ 2.92 billion. dollars to $ 2.06 billion. for the same period in 2015, while EPS fell to $ 0.5 $ 0.86 respectively. The company actively communicates with investors, holding conferences, meetings and webcasts. They describe the main problems faced by the company, such as an increase in regulation and in the field of tobacco taxation, restriction of circulation and advertising.
Despite this, the company is looking for ways to promote their products, focusing on the older generation, but admits that the restrictions preventing the launch of new brands and increasing the output of existing volumes.
Publication of the report has identified a new high 50.34 downward range, which can be used as a level of stop loss. The impact of a positive report is currently weaker, and in the medium term, most likely, the price of an asset will reach the level of 48.00.
Long-term prognosis - reaching support level 45.50. Transactions should be opened with a mark of 49.00.
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