Clumsy thief makes off with $1,300 in cigarettes

Police are looking for a clumsy burglar caught on video stealing $1,300 worth of cigarettes from a Walgreens on South Federal Highway.
Boynton Beach police report that store surveillance video shows a man and woman walking toward the store around 3:13 a.m. The woman distracts the clerk in a conversation about wart medicine.
As the woman and clerk walked to the back of the store, the man jumped over the front counter and put 25 cartons of cigarettes into a large bag. He then jumped back over the counter and dropped the bag, scattering cigarette cartons across the floor right in front of a surveillance camera. He picked them all up and fled.
The male suspect is described as a black male about 30 years old wearing a long white T-shirt and brown or black Dickie’s work shorts. The woman is a black female who was wearing all white medical scrubs. They fled in a newer model white or silver Ford.

24-Year-Old Charged with Selling Loose Cigarettes

Newark police arrested and charged a 24-year-old store clerk Friday for selling loose cigarettes and possessing almost 200 Oxycodone pills, according to police.

Detective Hubert Henderson said Vianelly Gavilan, of Newark, was charged with "multiple violations" of the state's narcotics laws and with the illegal sale of cigarettes.

The arrest came after an undercover operation around 8:30 p.m. Friday when a plain-clothed officer walked into Del Nitis Grocery Store on Park Avenue in the city and asked Gavilan for "loosies" — a street term used to refer to individual cigarettes removed from the pack and sold, according to Henderson. He said Gavilan then sold the officer "loosies."

Henderson said the officer then left the store and vice detectives re-entered the store and placed Gavilan under arrest.

Detectives recovered almost five cartons of cigarettes and several loose cigarettes, according to Henderson. He said they also discovered three bottles of Oxycodone.

Authorities did not say if Gavilan was released or is in jail.

Judge Questions Images for Cigarette Packages

A federal judge peppered a government lawyer with questions Wednesday expressing doubts about whether the Food and Drug Administration can force tobacco companies to post graphic images on their cigarette packages showing the health effects of smoking.

In a two-hour hearing, U.S. District Judge Richard Leon closely questioned Justice Department lawyer Mark Stern on whether the nine graphic images proposed by the FDA convey just the facts about the health risks of smoking or go beyond that into advocacy — a critical distinction in a case over free speech.

The cigarette companies sued in an effort to block the FDA from enforcing the requirement, which would go in effect a year from now.

The images include a cloud of cigarette smoke within inches of a baby's face; a pair of healthy lungs next to the diseased lungs of a smoker and a warning that smoking causes fatal lung disease; a smoker's stained teeth and a lip diseased by cigarettes; and a dead smoker on an autopsy table with surgical stitches in his chest and the words "Smoking can kill you."

If the judge were to conclude the images amount to advocacy, that would make it more likely that the tobacco companies would be able to block the government's latest move in regulating the industry.

Leon said he hopes to issue a ruling by the end of October.

Altria: Time To Consider Selling This Stock

It's interesting to see the stocks that are being recommended most frequently by the average retail investors. With interest rates at historic lows, few investments have gotten more attention lately than income and dividend based stocks. I would say Altria (MO) is one of, if not the most, mentioned of these stocks.

Having owned a number of high paying dividend stocks myself, I certainly appreciate the value of having these kinds of investments in a portfolio. However, just as not all companies are created equally, it is a hard fact that not all dividends can be maintained and grown either. While I have owned MO in the past, I now think people should seriously reevaluate their position in this company, and strongly consider selling this stock.

In an article I wrote several months ago, "LO: The only U.S. Tobacco Stock Worth Investing In", I discussed why LO (Lorillard) is in a far better position than both of the company's major competitors; Altria and Reynolds (RAI). Given the recent business decisions Altria has made, I now think that people should strongly look to avoid this stock.

Altria has had a good ride for sure. As the top performing stock in the S&P 500 for many years, investors have reaped significant profits from this company's strong growth and shareholder friendly policies. Altria has grown significantly over the years, and shareholders have benefited as much as anyone from the company's dedication to return value to shareholders. However, today Altria looks like a much different company. At first look, Altria's share price and dividend yield seem to suggest that the company is doing fine. The stock trades at around 12-12.5x a reasonable estimate of next year's earnings, has a dividend yield of over 6%, and has performed well even during the recent period of market turmoil. Unfortunately, if you look underneath this information, the picture begins to change.

The first red flag that jumps out when you look at MO as an investment is the debt load carried by the company. Altria portrays its business model as a cash flow machine and has grown its dividend at a double digit rate for much of the last fifty years. This is why it is interesting that the company carries about 14 billion in long-term debt despite having free cash flow of about 4 billion a year that is used almost exclusively to pay the roughly 6% dividend. Given the company's strong cash flow, the debt load would not ordinarily look that bad. However, when you look at Altria's specific debt there are some concerns that seem worth inquiring about. Altria borrowed at around 8-10% to acquire UST, an acquisition which has returned decent, but not great, results.

Class action trial against makers of light cigarettes begins in St. Louis

Lawyers are seeking up to a billion dollars in a class action suit on behalf of Missouri smokers against tobacco giant Philip Morris, accused of claiming light cigarettes were safer than regular cigarettes when they weren't.
About 700 million packs of Marlboro Light cigarettes were sold in Missouri from early 1995 until the end of 2002, the time period the suit covers, plaintiff's attorney Stephen Swedlow argued as the case opened Monday in St. Louis
The suit, filed in 2000, is not meant to blame Philip Morris for the personal choice of someone choosing to smoke perfectly legal cigarettes, he said.
"The problem is, this product is mislabeled," he said. "You don't get to sell low-fat yogurt that isn't low-fat."
The light cigarette packages promised lower tar and nicotine when they were made with the same tobacco as regular cigarettes, and smokers might compensate for the lower nicotine by inhaling more deeply, he said.
"The reason this is the most genius fraud in the state of Missouri is because smokers can't figure this out for themselves," he said.
He said Marlboro Light cigarettes are the best-selling cigarette product in the state.
Philip Morris attorney Beth Wilkinson argued that Marlboro Light cigarettes are different than regular Marlboro Reds, and include eleven percent less tobacco, more ventilation, and a longer filter.
Both types of cigarettes carried the same surgeon general's warnings, she said. She said many sources say the light cigarettes deliver less nicotine, and that by 1981 the public health community knew that people might compensate by inhaling more deeply with light cigarettes, she said.
"So how is that a secret?" she said.
She said the class action lawyers can't say how large their class is, when its members began smoking, and its habits of smoking Marlboro Light cigarettes.
Philip Morris attorneys said the plaintiffs produced an economic model that estimated damages at around one billion dollars. If the jury finds in favor of the plaintiffs, punitive damages would be determined in a second phase of the trial.
The trial is expected to last until around Thanksgiving. Twelve jurors and eight alternates were seated Monday morning.
Several class representatives were originally part of the suit, but the last remaining one is Deborah Larsen, 60, of Jefferson County. She smoked about a pack and a half of Marlboro Lights a day from 1979 until 2002, when she quit. Philip Morris attorneys say she was sought out by the plaintiff's attorneys to represent the class.
This is the second large tobacco trial in St. Louis Circuit Judge Michael David's courtroom this year. In April, big tobacco companies prevailed in a sweep of verdicts against hospitals seeking to recoup the costs of treating smokers' diseases. That trial started in January and took two and a half months to present.
In 2003, another case involving the marketing of light and low-tar cigarettes as safer led to a $10.1 billion verdict against Philip Morris in Madison County Circuit Court. The Illinois Supreme Court overturned it, and earlier this year the case was revived by a lower appeals court.

Cigarette label warnings turn horrific

The federal government is set to paste horrifying new warning labels on all cigarette packages in Canada.

QMI Agency has learned the labels will include photos of a skeletal woman dying in a hospital bed, a swollen tongue blackened with tumours and an image of a child wearing an oxygen mask.

Tobacco companies have until March next year to comply. Retailers will have until June 2012 to make sure their shelves are stocked with only the new packages.

Packs of smokes already have graphic warnings, including rotting teeth, lung tumours and limp cigarettes saying smoking kills erections. They take up about a third of the packaging.

All boxes currently list the toxic chemicals included, and are banned from using the terms "light" or "mild."

The Supreme Court of Canada ruled in July that the federal government cannot be sued for health damages caused by smoking -- tobacco companies insisted Ottawa be included as a third party.

Most provinces and territories are currently suing tobacco companies to try to recoup health care costs.

In the United States, the Food and Drug Administration insists on warning labels that include a photo of a corpse with post-autopsy chest staples. American tobacco companies are suing the government.

Ashfield businesses pass police cigarettes test sting

ALMOST one in six businesses in Nottinghamshire sold tobacco to under-18s during a recent test purchase operation across the county.

Nottinghamshire County Council Trading Standards Officers worked with volunteers aged 15 to 17 on the operation at newsagents, grocers, petrol station and small supermarkets in the districts of Ashfield, Newark and Sherwood, Broxtowe and Bassetlaw.

Of the 57 premises checked during week commencing 22nd August, sales were made to the young volunteers in nine. But no sales to under-18s were made at the premises tested in Ashfield.

Owners at the nine shops will now be interviewed by Trading Standards Officers and a decision will be taken on what, if any, action will be taken against them.

Shops can be fined up to £2,500 if found guilty of selling cigarettes to under-18s.

If a premises, person or company sells tobacco or cigarette papers to under 18s twice in two years, the County Council can apply to the Magistrates’ Court for a Restricted Premises Order or a Restricted Sales Order, which can ban sales for a period of up to a year.

Coun Mick Murphy, cabinet member for community safety at Nottinghamshire County Council said: “It is disappointing that so many premises in Nottinghamshire have been willing to sell tobacco products to children without challenge, despite clear guidance to the contrary.

“Trading Standards work closely with local businesses who want to ensure that they do not sell tobacco to under-18s by giving advice on their legal responsibilities, as well as tips on how to avoid selling all age-restricted products to young people.

But whilst we recognise that the majority of retailers are responsible, we will come down hard on those who flout the law.”

Smoking curbs obesity, but should still be reduced

Scientists publishing new research through the National Bureau of Economic Research have concluded that quitting smoking is the biggest quantifiable cause of obesity.

In a working paper released Monday morning, Charles Baum of Middle Tennessee State University and Shin Yi-Chou of Lehigh University in Pennsylvania found that a decrease in the average number of cigarettes smoked per person in America likely causes an increase in obesity.

Referring to the Body-Mass Index, a crude but common obesity measurement, the researchers write: “We find that cigarette smoking has the largest effect: The decline in cigarette smoking explains about 2 percent of the increase in the weight measures. The other significant factors explain less.”

Other variables Baum and Yi-Chou compared include food stamp enrollment, the physical demands of people at work and urban sprawl. Urbanization and food stamps were both related to obesity, but not nearly as much as the nationwide decrease in smoking in recent years.

Though they found continuing or starting smoking helps curb obesity, Baum and Yi-Chou aren’t suggesting people should smoke.

“No one recommends cigarette smoking (or higher cigarette taxes) as a means to combat obesity,” the economists wrote.

Moody's Lifts Outlook On Reynolds American To Positive

Moody's Investors Service on Tuesday boosted its outlook on Reynolds American Inc. (RAI) to positive from stable, saying it expects the tobacco company to continue to grow profits despite fundamental weaknesses in the U.S. cigarette market.

The credit ratings firm also affirmed Reynold American's Baa3 rating, preserving its position on the last rung of investment-grade territory. Moody's said the rating could get an upgrade if the company sustains strong credit metrics and successfully manages litigation and regulatory challenges.

"Litigation and regulation remain ongoing risks, but the effects will likely be mitigated and/or delayed by legal challenges from both RAI and the industry and diversification into adjacent categories such as smokeless tobacco," said Janice Hofferber, a senior vice president at the ratings firm.

Reynolds American, the nation's second-largest tobacco company behind Altria Group Inc. (MO), has seen cigarette pall mall volumes decline due to demographic changes and widespread public-smoking bans. Still, the company in recent years has turned its attention to a few core brands, such as Pall Mall and Camel, and is looking to smokeless products like its Grizzly moist snuff for growth.

Second-quarter results from Reynolds American saw earnings slip 11% as the company booked a litigation charge and saw costs rise.

Move Over Joe Camel -- Plastics Lobby Targets Kids in Textbooks

What do cigarettes and single-use plastics have in common? Most cigarettes have a single-use plastic filter -- so smokers get a dose of petrochemicals along with their tar and nicotine. Also, single-use plastics are becoming recognized as a public health crisis just like cigarettes were decades ago. Finally, both the tobacco and plastics industry have demonstrated a disconcerting lack of ethics in pitching their products to kids.

The current environmental, health and safety battle over the impacts of single use plastics reflects the early days of the anti-smoking movement in many ways. Public awareness about the impacts of single-use plastics on the environment and human health is increasing due to the work of nonprofits, universities and governmental bodies. Single-use plastics are becoming recognized not only as an eyesore that litters our nation, but as threats to public health as they have entered our food chain both directly, through leaching their chemicals into food and drink, and indirectly, as plastic pollution is consumed by marine life in our lakes, rivers and oceans.

But with the plastic bag being the number one consumer item on the planet according to the Guinness Book of World Records, the plastics purveyors won't go down without a real fight. The war is being fought between environmental and public health interests and the petrochemical lobby, headed by The American Chemistry Counsel (ACC) with Dow Chemical at the helm. In pushing its agenda to keep Americans hooked on single-use plastics, the ACC has employed many of the same tactics that were used by the tobacco industry.

Remember Joe Camel? He was the R J Reynolds Cartoon Mascot for Camel cigarettes that was abandoned by that company in 1997 under pressure from public-interest groups and a pending lawsuit alleging that Joe Camel was a marketing ploy to attract children to smoking. In 1991 The Journal of the American Medical Association published a study showing that by age six nearly as many children could associate Joe Camel with cigarettes as could associate Mickey Mouse with the Disney Chanel logo. Also, 32.8% of all cigarettes illegally sold to minors were Camels, up from less than 1% before the cartoon camel campaign. Internal documents from RJ Reynolds that were to be used in the trial showed that underage children were indeed on the minds of the cigarette manufacturers despite their claims to the contrary: RJR's Vice-President of Marketing explained that the "young adult market... represent[s] tomorrow's cigarette business. As this 14-24 age group matures, they will account for a key share of the total cigarette volume -- for at least the next 25 years."

You can rest assured that the purveyors of the lucrative single use plastic bag have done their market research to keep young Americans asking for plastic at the cash register. While municipalities and countries around the world are banning single use plastic bags, the petrochemical lobby is upping their game at marketing them. Plastic bag manufacturers who call themselves "an environmental group" in court papers created "Save the Plastic Bag Coalition" to file lawsuits against jurisdictions who ban or place fees on plastic bags. Three of the largest plastic bag manufacturers have sued a small reusable bag manufacturer ChicoBag for "irreparably harming" their business. The ACC sponsors the plastic recycling section of Earth 911 as a means to promote recycling plastic as the solution to plastic pollution when evidence shows otherwise (see Plastic and the Great Recycling Swindle). And now the ACC is trying to enter the classroom via our children's textbooks.

UN: tobacco tax essential for social development, economic health

Member states of the United Nations have adopted a Political Declaration committing governments to speed up implementation of a tough framework convention on tobacco control as a means to curb diseases.

At the UN High-Level Meeting on Non-Communicable Diseases (NCDs), member states affirmed support for the WHO Framework Convention on Tobacco Control (FCTC) and vowed to encourage countries, which have not yet done so, to consider acceding to the FCTC.

Southeast Asia Tobacco Control Alliance (SEATCA) director Bungon Ritthiphakdee, speaking from the UN General Assembly in New York City, reported that the Declaration acknowledged the special contribution of reducing tobacco consumption in the effort to reduce NCDs. The Declaration also noted the role of price and tax measures in cutting tobacco consumption.

Dr. Margaret Chan, WHO Director-General, said in her address to the UN General Assembly, “Full implementation of the WHO Framework Convention on Tobacco Control would bring the single biggest blow to heart disease, cancer, diabetes, and respiratory disease. In terms of demand reduction, increases in tobacco taxes and prices are the most effective measure. They not only protect health. They bring in considerable revenue.”

According to a recent World Economic Forum and Harvard University study, NCDs will cost the global economy over the next 20 years a staggering US$ 30 trillion, representing 48 percent of global GDP in 2010. NCDs can thus “break the bank” of even the wealthiest nations, said Dr. Chan.

According to Ms. Ritthiphakdee, the High-Level Meeting on NCDs provides an excellent opportunity for public health and tobacco- control advocates in all countries to reiterate the triple benefit of higher tobacco taxes: lives saved, healthcare savings, and higher government revenues.

Smoking prevalence in Indonesia (34 percent) and the Philippines (28.3 percent) are currently among the highest in the world. Not coincidentally, they also have some of the lowest tobacco tax rates and the cheapest tobacco products in the world. But Southeast Asia is also home to some of the most compelling proofs of the effectiveness of raising tobacco taxes.

“In ASEAN countries such as Thailand, which has increased tobacco taxes nine times from 1994-2010 (current excise rate is 85 percent), smoking prevalence among youths and the poor decreased more than 50 percent,” said Ritthiphakdee.

Australia to push for plain tobacco packaging at UN summit

Australia's Health Minister Nicola Roxon will be pushing for other countries to follow Australia and legislate for plain-packaged tobacco at a summit on disease prevention.

The minister is currently in New York for a United Nations summit looking at some of the West's biggest killers such as cancer, heart disease and diabetes - health issues that are also of increasing concern in the developing word.

Warning as £3m tobacco seizure bound for Ulster

THE seizure of almost £3m worth of smuggled cigarettes in Dublin should serve as a reminder that anyone buying them here is “funding the murder of their neighbours”, it has been claimed.

Former PSNI assistant chief constable Alan McQuillan – now an international crime consultant – gave the warning after Irish customs officers seized eight million cigarettes in Dublin which “were destined for the Northern Ireland market”.

A report by the International Monitoring Commission (IMC) in March strongly linked cigarette smuggling to dissident republican groups CIRA and the RIRA. One month after the IMC report a dissident republican bomb claimed the life of PSNI constable Ronan Kerr in Omagh.

The Dublin contraband was seized on Monday at the city’s port and is estimated to have a retail value of £2.7m and a loss to the Irish exchequer of £2.2m. The illegal consignment arrived in Dublin from Spain in a 40ft maritime container declared as “paper products” and contained “Regal”, “Richman” and “Hoop” brand cigarettes.

A Northern Ireland-registered commercial vehicle and trailer were seized as part of the operation.

Investigations are ongoing both nationally and internationally into the haul.

A spokeswoman for the Irish customs office said this latest seizure brings the total number of cigarettes it has seized to date in 2011 to around 87 million, with a total retail value of about £28.9m.

Former Assets Recovery Agency chief Mr McQuillan said the seizure of cigarettes in Dublin would cause “serious damage” to dissidents.

“It seems quite clear that dissident republicans are inextricably linked to organised crime and they are probably using this money to fund paramilitary operations,” he said.

“But really what you have here is organised crime gangs. It has to be priority for the community to get behind the police in order to stop these economic and terrorist crimes.

“I am delighted to see this seizure in Dublin but what we really need is for people to stop buying illegal cigarettes.

“They need to know that their money is going to kill their neighbours through dissident republican terrorism.”

On Monday the News Letter reported that Northern Ireland customs officers have quadrupled raids against fuel laundering plants here since 2008/09, which the IMC also strongly linked to dissident republicans.

WV Anti-Tobacco Campaign to Feature Students' Personal Stories

West Virginia's youth-led tobacco prevention movement, Raze, will feature teens from around the state telling their personal stories about how tobacco has affected their lives.

The campaign is an extension of last year's "I did it" campaign, which encouraged teens to submit their stories about how tobacco has affected them personally.

The "I did it" campaign was launched in August 2010 and included
television commercials, print ads, mall displays, movie theater advertising and sponsored local events.

Following the campaign, Raze received more than 600 stories from teens all over the state, sharing their personal stories about tobacco.

These stories were used as the foundation of the latest campaign, entitled "Raze for Real."

Specific teens' stories were chosen to spotlight as part of the campaign and these teens were showcased in television commercials, print ads, billboards, social media initiatives and more.

The campaign is set to launch in early fall 2011.

As part of the campaign, Raze created its own Facebook and Twitter pages, as well as its own YouTube channel, where teens can go and find out more information about the program and the teens featured in the campaign.

The "Raze for Real" campaign will continue to the strong messaging against tobacco use amongst West Virginia youth.

While smoking prevalence is declining among West Virginia's youth, according to a recent state Youth Tobacco Survey, 22 percent of West Virginia's high school students continue to smoke.

7 Reasons To Buy Altria In Current Turbulent Markets

In a turbulent market, MO is one stock which operates independent of the economic landscape. Cigarettes are a legal U.S. product. Some people choose to smoke. Key rationale for buying this stock include:

MO has a .45 beta compared to the overall stock market. When other equities are volatile, MO's stock price trades within a narrow range. MO has traded between $22.75 - $28.13 for the past 52-weeks.
MO's dividend has been raised 45 times in the past 42 years. Management is clear on rewarding shareholders with sharing profits and sound financial decisions.
MO continued to show investors that dividend increases are a key focus. On August 26th, 2011, MO increased their quarterly dividend 7.9% from 38 cents per quarter to 41 cents per quarter. The annual dividend yield is 6.1% based upon a $26.72 MO stock price.
MO continues to aggressively buy back shares. On January 27th, the company committed to buying back $1 billion in MO shares during 2011.
MO continues to see progress in smokeless tobacco sales and wine sales. These product lines will provide growth markets for the upcoming years.
MO, on July 20th, confirmed that earnings per share (not counting one-time adjustments) will increase between 6-9% for the year. EPS figures should arrive at $2.01 - $2.07 per share. This represents a reasonable 13x price-to-earnings multiple for a sound company.
In 2011, Fortune magazine ranked MO number one in the tobacco industry for financial soundness and long-term investment.


Reynolds American Inc. (RAI)

Reynolds American is the second leading cigarette producer in the United States, behind Altria. Core brands include: Winston, Doral, Camel, Salem, Pall Mall, Kool, and Vantage. Winston and Camel are the key brand names in terms of revenues. BTI owns 42% of RAI common stock. RAI sold their international business to Japan Tobacco in 1999. RAI management has been more aggressive in dividend increases than stock buybacks. This is due to BTI's significant RAI-ownership.

5 Big Tobacco Stocks Providing Solid Yields In A Downturn

It seems to be the positon of the majority that we are either heading for another recession or a prolonged period of slow growth.

Based on public sentiment and the degrading economic indicators, I am of the opinion that there is between a 25 and 40 percent chance of recession. So it would seem prudent to look at one of the most recession resistant industries: Big Tobacco.

A negative economic outlook seems to do little to inhibit consumers from lighting up. So with the threat of a double dip recession looming and the Fed pledging to keep interest rates low until at least 2013, I feel that the tabacco industry is a great place to look for possible investments.+

Reynolds American (RAI)
Description: Reynolds American Inc. (RAI), through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. It offers cigarettes under the brand names of CAMEL, PALL MALL, WINSTON, KOOL, DORAL, SALEM, MISTY, and CAPR. The company also provides smokeless tobacco products, including moist snuff under GRIZZLY and KODIAK brand names. The company was founded in 1875 and is headquartered in Winston-Salem, North Carolina.

Valuation: RAI is currently trading $36.91 which gives it a market cap of 21.52 billion. It places at number four on the list based on its size. It currently has a trailing multiple of 16.05 and a forward multiple of 13.04.

Financial Metrics: Reynolds American has the smallest operating margin at 29.69%. Also at 20.57% it has the lowest return on equity of the five stocks. However, on a positive not it has the lowest debt to equity ratio out of the five companies.

Dividend Analysis: RAI provides a solid $0.53 quarterly dividend which gives it a yield 5.80%. It has the second highest payout ratio on the list at 87%. RAI has been paying out dividends for twelve years and increasing them for the last three.