By Mike Havrilla on 2/25/09
The ETF Innovators
Global Tobacco Index tracks the performance of the 24 companies listed below which derive the majority of their revenue from the distribution or manufacturing of any type of tobacco product (e.g. cigarettes, cigars, chewing tobacco) or any related supplies (e.g. wrapping papers, tobacco leafs, filters) used directly in the manufacture of tobacco products.
The Global Tobacco Index is down by 9.3% to a value of 258,320 and average dividend yield of 4.4% from its starting value of 284,864 on 12/21/08, as compared to losses of 10.3% for the S&P 500 SPDR (SPY) and 10.5% for the Consumer Staples Sector SPDR (XLP).
Today, a panel of 26 leading tobacco control researchers and policy experts
issued a statement that included a recommendation for FDA regulation of all tobacco products. Other recommendations included regulation of marketing, public education initiatives on the relative risks of products containing nicotine, higher cigarette taxes, increased efforts for programs to help people stop using tobacco products, and stricter regulations of tobacco advertising.
The following companies are standouts from the index based on their current valuation and other financial parameters:
1.) highest dividend yields: Vector Group (VGR) = 12.3%, Reynolds American (RAI) = 10%, Altria (MO) = 8.5%
2.) largest market caps: Philip Morris International (PM) = $70B, British American Tobacco (BTI) = $49B, Altria = $32B
3.) biggest stock price increase in the past year: Star Scientific (STSI) = +52%
The remaining companies in the Global Tobacco Index include:
1.) Alliance One (AOI)
2.) Bentoel International (Indonesia: RMBA.JK)
3.) Godfrey Phillips (India: GODFRYPHL.NS)
4.) Golden Tobacco (India: GOLDENTOB.BO)
5.) Gudang Garam (Indonesia: GGRM.JK)
6.) Hanjaya Mandala (Indonesia: HMSP.JK)
7.) Imperial Tobacco (UK: IMT.L)
8.) ITC Ltd. (India: ITC.NS)
9.) Japan Tobacco (JAPAF.PK)
10.) JT International (Malaysia: 2615.KL)
11.) Korea Tobacco & Ginseng (KT&G) (033780.KS)
12.) Kothari Products (India: KOTHARIPR.NS)
13.) Lorillard (LO)
14.) RDB Industries (India: RDBIND.BO)
15.) Schweitzer-Mauduit (SWM)
16.) Swedish Match (SWMA.ST)
17.) Universal Corp. (UVV)
18.) Woori Tobacco Sales (Korea: 016670.KQ
$15.58 (02/26/09)
