Published On: Wed, Jul 15th, 2015

Ways of investing in the smoking hot e-cigarette industry – The 21st Century cigarette

Yes, the e-cigarettes look like cigarettes, feel like them and also tastes like them and you ask any smoker and they will tell you about the satisfaction that they get from smoking e-liquid vape flavors. But the best part of electronic cigarettes s that they don’t have the offensive smoke that is actually harmful for a person’s health. Instead of the smoke, they have an odourless vapor through which small amounts of nicotine is delivered to the user. And guess what, they are even allowed at public places where the conventional cigarettes are banned. Studies reveal that e-cigs make smoking healthier for the chain-smokers and all those who are there around them and sometimes they also help smokers quit cigarettes. E-cigarettes cost half as much as the regular ones.

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Big tobacco starts placing bets that the electronic counterparts can allow the tobacco industry and its annual sales to move beyond $750 and even grow after that. Altria Group Inc (NYSE:MO), the biggest tobacco company of the world and also a parent company of Philip Morris USA is the last of the three biggest tobacco firms of the US to get electronic cigarettes into the game. No one can deny the fact that adult tobacco customers have showed surging interest in them. The investors of e-cigs pay thanks to the increased awareness of health and the introduction of certain taxes that have tripled the price of packs and that led to a decline in cigarette sales. This in turn is giving a good rise to the alternatives like the e-cigs.

The Best E-cigarette investments to watch out for

Have you ever heard of “sin stocks”? Well cigarette stocks are one among the best “sin stocks” and they have dramatically outperformed the entire market in the past decade. Apart from Altria, which is a favorite of the investor’s portfolio, here are some other cigarette stocks that can be considered by the investors.

1. Reynolds American Inc. (NYSE: RAI): Reynolds produces Doral, Camel and Winston products and is the second-largest tobacco company that accounts for 2% of the US tobacco sales. It was in 2006 that it purchased Conwood, the second-largest smokeless tobacco company and had produced a limited range of its e-cig, Vuse in 2014.

2. Lorillard Inc. (NYSE: LO): Lorillard is the maker of Newport cigarettes and is the third-largest tobacco company in the US and is also considered as the oldest (being founded in 1760). In 2011, Newport accounted for 88% of Lorillard’s sales and in order to diversify, they acquired blue eCigs, the electronic e-cigarette maker for $145 million.

3. Vapor Corp. (OTC: VPCO): Unlike the other above mentioned companies, this is a direct play on e-cigs. In fact, Vapor Corp. is the fully reporting and publicly traded e-cigarette company in the US. However, when compared to the above stocks, this is certainly the riskiest one. For 2012, this company reported net sales of $22 million.

So, if you wish to learn e-liquids and invest in the stocks, you can take into account some of the above mentioned electronic cigarette stocks. However weigh your decision by doing a comprehensive market research.