Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways to Play: Reynolds Shifting Its Strategy


Strengthen your portfolio in good times and bad.

Reynolds' Shift in Strategy?

Reynolds American (RAI) is in advanced negotiations to take over Niconovum, a Swedish maker of nicotine-replacement products that helps people quit smoking.

According to the Wall Street Journal, the deal is only worth about $44.5 million but it could be a big sign of more changes to come for the global tobacco industry.

Reynolds, the second largest cigarette-maker under Altria (MO), could shift more to smoking-cessation products. The big tobacco companies have owned pharmaceutical businesses but none have yet to market or sell approved cigarette alternatives.

From the Bull Pen: This takeover is just another clue, albeit a small clue, of increased risk-taking. And on the charts, the S&P 500 retaking 1070 is another positive sign. Consider Netflix (NFLX), which could be basing for a higher move. A sell stop can be set below $53 support.

From the Bear Cave: If you're looking for a downside swipe, the Russell 2000 ETF (IWM) approaching its overhead 20-day moving average (currently 59.50) could be an opportunity. If and when.

A Quick Check Around the World

Asian trading closed with the Nikkei 0.20%, India 2.11%, Hang Seng 1.73%, Shanghai 0.36%, and Taiwan 0.99%.

Across the pond, we see the FTSE 1.81%, CAC 1.60%, DAX 1.67%

As of 8:20 a.m. EST, S&P Futures are trading +10.0 to 1076.00 and Nasdaq futures are +16.25 to 1745.75.

A Look at Commodities

Over in commodities, crude oil is +1.13 to 78.56 while gold is +13.5 to 1109.20 this morning. Silver is +0.38 to 17.750 and copper +3.705 to 298.95.

The dollar Index is -0.8050 to 75.1350.

No events on the radar today but click here for the full list of this week's events.

Happy Monday, Minyans! It's good to be back. Good luck and have a great day!

Register For Minyanville's Holiday Festivus '09 Here
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos