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n a sign that some analysts are losing confidence in the tobacco sellers,[link widoczny dla zalogowanych], Citigroup has downgraded British American and Philip Morris from ‘Buy’ to ‘Hold’. Citi expects smoking to essentially disappear in the next 30 to 50 years.
The analyst doesn’t offer a reason for the disappearance, but the logical conclusion is that all smokers will be dead by then. Even if that’s true,[link widoczny dla zalogowanych], the short-term focus is more important to investors than the outlook for 20 years from now, and the forward yields for the tobacco companies are higher for every company except Reynolds American. That suggests that overall expectations for the tobacco business are still strong.
The reason for the continuing growth projections have to do with the very nature of tobacco itself. In “Barbarians at the Gate,” the story about the takeover of RJR Nabisco back in the late 1980s,[link widoczny dla zalogowanych], one of the tobacco company executives is quoted as saying something like this: “Cigarettes are the perfect product.
You can make them for a penny and sell them for a dollar; people are seriously brand loyal; and the product is addictive.” The ad,[link widoczny dla zalogowanych], paid for by the Seneca Free Trade Association, tries to mock the perceived ease with which government officials “think nothing of sacrificing Native Americans” due to promises to special interests, or “when they create and pass unconstitutional laws to eradicate economies of sovereign nations.”
“When Native Americans are beaten and killed in the days to come it will be easily defended as,[link widoczny dla zalogowanych], ‘We are just doing our jobs,[link widoczny dla zalogowanych],[link widoczny dla zalogowanych],’” the advertisement says. Fierce language is exactly what some leaders hope to defuse.
When asked about the mood of the community prior to Tuesday’s court hearing before U.S. District Judge Richard J. Arcara, Seneca described tension and uncertainty. “We’re trying to communicate with our people,” Seneca said late Tuesday morning. “We sent a message out for everybody to stay calm.” That message has also included telling Senecas not to give “outside law enforcement” any reason to come onto Indian territory, Seneca said.
“If somebody does something like that, hopefully we can deal with it in quick fashion where it doesn’t turn into something that gets out of control,[link widoczny dla zalogowanych],” he said. Tobacco products will be hidden and anti-smoking advocates will receive powers immediately fine tobacco shops under tough measures implemented by the Government.
“The Cabinet had signed a package of legislation in order to tighten tobacco controls. I hope that this legislation will be adopted by Parliament before Christmas. In case it will be adopted any tobacco displays will prohibited,” stated associate Health Minister Tariana Turia. Also smoke-free enforcement officers will have to hand out fines to those retailers who sell tobacco products to under age.
The officers were given the power to control pubs with video cameras in 2003. “There were already up to 30 such officers around the country controlling shops. They usually used under-age volunteers in order to lead their case,” stated Health Ministry public health chief advisor Ashley Bloomfield.