Feb 1, 2019|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Whole Monica from CNN business joins us now just as it has every single week the difference is can we talk a little ball with before we get into stocks we aren't your cup of the most important things. First obviously Paul thanks for joining us. They just are there's there's sporting event of national. And they've been. Did well I don't know about national I don't think people and LA are really gonna be tuning in them much but other than that I think most people be watching it so. I'm curious your ears your thoughts on this game and I know your big football fan I'm curious to hear what you have to say before we get into little Altria talk. He added. Pays they do admitted but. I think the patriots their going to be around them. Chip it close game I mean you haven't had a patriots to pull out to the bowl never think that trend Lola continued I think it would have been maybe it touched. 3124. OK well let's let's talk a little bit on Altria then this is a company. That's you know really struggled over the course of 2018 stock opened the year about seventy bucks a share. By the time the year was done it was down below fifty. It's been kind of treading water the first month this year what kind of problems did they see last do that led to that decline. Yeah I mean. It's really no peaks he created that. You know the Packers used in now oaks developed market. Obviously. The US first and foremost that you know it has been something that has been falling for years and is expected to. Can he do but I do. That is why Altria. Need these buried deep investment in new product by yeah pretty if it's a cute though. The you know they'd be accompanied jewel as well as krona respect eighty camp. What when you look at those two acquisitions as one of them striking at least here's how I look at it jewel seems to me to be hey let's stem this to stem the tide in the short term and never give ourselves another product over the next couple years where's Crowe seems to be much more bay long term investment for them. Agree is that gross me right now argues still. We don't have seen major. Opportunities for ban D&E U that you know a lot of states have legalized by the recreational medical marijuana are accused of there's that federal law ban so it is more acting to apply on the future of the expectation that I'd. The US potentially. You know the lies that early in the the other nations as well but when you look at Jewell mean that is something. That cleared the I think they're reaching out to a younger demographic in the fact that when he did that you'll also advocate of giving. Shelf space to. Tool products on the long side all of Europe and author. Altria or cigarette. That's pretty big if you know I think we will read is one now the Stanley agreed to knock. Couple weeks ago there was the concern that you know that the so called cannibalization. You will. Shipment. More reasons you don't need BBC a little too much for tools well. Very expensive purchase even know there revenues for jewels but be a possibility that your. Paul with regards to the regulatory concerns when it comes to jewel that there's two trains of thought on this the first is. That paved the the FDA has been going after them over the last no really six months in particular and that could be a continued concern. The other is pay all trees got one of the strongest lobbying groups out there and they could potentially stem the tide there are a little bit with where where do you kind of see all of that going. Yeah I think it is there he actually is he out it is definitely cracked down on the labor that we are now locked. You know jewels playing now like long we've the FDA and Altria no is kind of change your challenge. Some of those rules I think it is you've been without. Leave her pot you know that there's no potential war. Growth in this is. You know I had some when he he you have to wonder if this is just the they actually start the slowed down as people were. Possible culprit here you know on it if that help to prop stretched it may be. Not adds that dangers are you you know it's. Back. Paul obviously there's two acquisitions happening in December kind of back to back. Big big chunks of change you that the stake in krona civilly was one point eight billion I think that the staking Jewell was. I think I can't revenues north of ten I think. Any plans for any additional acquisitions or anything else to think they might poke around on. I'm not so sure at this point that there is much. And where it financially prevented do you. Another. You know be you know you know I think they're right now they got their hands fall. With those that a particular. Purchases they need trying to figure out you know what the legal landscape is going to be her for candidates go forward as an out it's really. More Canada play you know right now not fiction or. That Jagger gonna be Altria made any significant news that. Go over given that they equality and outspent. You know billions of dollars of these studios they also still have an investment in and I depression depth of while. Diversified if you will a little bit the so called in that. Inspect air with you know I think you know that ecstatic about it and make the. All those arguments in this is considered kind of one of those one of those scenes stocks. One of the terms that we started to hear more about in the last year too is this whole socially responsible investing. The human platform that that's been developing is that something that represents a threat to a company like this either in the short for a long term. Now I'm not finished their that being out. You know that you know clearly. There. Concerned. About that all Lotta things with this company right now you know being. You know that seed companies do. You know legitimate worries about social issues. Whether or not there could be. Agents are under age maybe. That. They are worried at how applications you know these aren't it is not it. I think the peak yet not gone to a particular is that you read it in something that has been market. Or toward. Third. Good Paul let's go enjoy the weekend and we'll see on the backside of the Super Bowl and brought it yet. Poll Monica from CNN business talking about Altria with a ticker MO. I have a tough. Time making a case that's Altria is such a it has such a moral issue is they did thirty years ago. And however when smoking knows that it's all right yeah I've if you're making a decision at this point the news is out today they're not gone out and trying to hock these things to thirteen year olds anymore. I mean Missoula problem schedule was but they just acquired them I don't think Altria is gonna take that risk. They they might not but the fact is when you talk about who companies want to market to. It's still as young people the they they want a bill fifty year pipeline of that there's a reason why advertisers don't target 75 Urals depth. It's just because they don't happy if it's not a long term commitment I guess in news's hour. If your smoke in these days even today.