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19 September 2021
12:19 hour

Washington Watch: Oil industry avoids pain in House Democrats’ tax plan, but tobacco, vaping get hit

Market Watch

14/09/2021 - 21:28

Democratic lawmakers' $3.5 trillion spending plan still faces a long road to becoming reality, but analysts are flagging some winners and losers in one key House committee's proposals for funding the huge package.


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  2. Washington Watch: House Democrats plan EV tax credits of up to $12,500, as Republicans, Tesla, Toyota voice objections (16/09/2021 - Market Watch)
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  6. Capitol Report: McConnell says Democrats won’t get help from Republicans in raising debt limit (05/08/2021 - Market Watch)
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  7. Senate Democrats float taxes on stock buybacks, plastics to pay for spending plan, plastics to pay for spending plan (03/09/2021 - Reddit Stocks)
    Senate Finance Committee Democrats are looking at several tax options for paying for their social-spending bill that have not been previously proposed by the White House, including taxes on stock buybacks and materials used to make single-use plastics, according to a document obtained by The Hill. The document comes as Democrats are in the process of crafting legislation that is expected to include up to $3.5 trillion in spending https://thehill.com/policy/finance/570754-senate-democrats-float-taxes-on-stock-buybacks-plastics-to-pay-for-spending   submitted by   /u/BurnerBurnerBurns20 [link]   [comments]
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  8. Am I a bad person to invest in Big Tobacco? (05/07/2021 - Reddit Stocks)
    I started buying Tobacco stock, namely BA Tobacco (LSE), because it pays a 7% yield on dividend, has a P/E ratio of 10.33, revenue & profits are continually improving YoY, has a nice cash balance of 3.14B, are venturing into weed industry and it dominates the vaping (Vuse + Vype) + smokeless tobacco industry (Grizzly). I am not a smoker and I've hated it all my life because I know how bad it is for your health, despite my whole family and most of my friendship are smokers. I even had a family friend get lung cancer from smoking, thankfully he survived through Merck's immunology drug keytruda (MRK) that I also own shares in but that didn't stop him from smoking. From this, I know how addicting it is and that demand for the product won't stop despite continual regulations against it. Even though it gets heavily taxed, the company increase their prices to keep margins high and people still buy it and this won't stop. I understand that I am investing in an industry that fundamentally kills it's consumer, which is probably a stupid idea but despite this, demand continually increases. If there are better companies or industries to invest in then I am all ears.   submitted by   /u/BrandedStrategy [link]   [comments]
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  9. House Democrats unveil tax proposals to fund $3.5T infrastructure plan (14/09/2021 - Seeking Alpha)

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  13. Oil industry keeps tax breaks in House Democrats' proposal (15/09/2021 - Seeking Alpha)

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  14. Looking to get into weed/vape/tobacco companies, mostly for the inevitable benefit of national legalization. $MO or $BTI? Others? (03/09/2021 - Reddit Stocks)
    Obviously tobacco consumption has declined considerably over the past 2 decades. That said, nicotine vapes and of course weed is also on the rise. Altria ($MO), which owns the Marlboro brand, invested $1.8 billion in Cronos Group for a 45% stake in addition to JUUL which fueled a public health crisis in teen vaping. Altria now has a cooperation agreement with Philip Morris International ($PM) to exclusively sell their E-Cigarettes, and in return PM has the right to exclusively sell Altria’s products outside the US. British American Tobacco ($BTI) subsidiary acquired a 19.9% equity investment in Organigram, a leading Canadian cannabis licensed producer. BTI also seems to be more involved in the vape market compared to Altria: "BAT’s performance in 2020 was supported by the growth of e-commerce, with Vuse/Vype being the most visited branded e-commerce site across the majority of the main vapour markets, and ranking No.1 for branded search against competitors. In December, Vuse/Vype had over 17,500 subscribers (up 5x since January 2020) with the average subscriber lifetime value equal to 3x that of a traditional retail customer. With tobacco and cigarette use decreasing, I believe the proper strategy is to be focused on vape products and the cannabis industry. Once it's federally legalized, I believe big tobacco and possibly alcohol companies will be buying up much of the marijuana industry. I currently have no positions. What is your play for this (if any) and why? Sources / Further Reading: Corona beer maker Constellation Brands ($STZ) increases stake in Canopy Growth to 38.6% Vaping Statistics 2021 Tobacco Companies & E-Cigarettes Altria British American Tobacco   submitted by   /u/BiscuitsNbacon [link]   [comments]
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  15. Capitol Report: House Democrats take aim at SPACs as asset class’ performance worsens (24/05/2021 - Market Watch)
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  25. British American Tobacco - A value play or a value trap? (05/05/2021 - Reddit Stock Market)
    https://www.youtube.com/watch?v=V7jMvWTwe6Y TL;DR - Is the Tobacco industry a worthy investment considering their impressive free cash flow yields and usage growth in the non-Western world, despite the headwinds they face concerning regulation? Hello Investors! I originally posted this link to the ValueInvesting and UKInvesting subreddits which resulted in a good discourse around BATS and investing in the tobacco industry in general, so I'd be interested to hear your guys thoughts on the topic: Link to qualitative and quantitative analysis on BATS above. The stock is currently trading at levels similar to the lows of the Covid-19 crash and in the video I discuss whether I think it could be a value play, or a value trap, and also provide my intrinsic value calculation using a combination of the discounted cash flow model and future earnings multiples. I'd appreciate it if you spared some time to take a look at the video and let me know what you think, but a couple of the points I cover are: Risks: - The Biden administration are considering the banning of menthol cigarettes, which account for 55% of BAT's cigarette volume in the US. Furthermore, a research study estimates that banning menthol cigarettes will result in 923,000 US smokers to quit, significantly damaging BAT's top and bottom line. - There are proposals for increased regulatory action on tobacco producers to significantly reduce the amount of nicotine in cigarettes, reducing their addictiveness and again harming sales and profits. - A general trend of increased health consciousness and move away from traditional tobacco products, though the trend of cigarette smokers worldwide still appears to be increasing. Opportunities: Key opportunity being a move into the cannabis sector following BAT's acquisition of a 20% stake in Organigram. New category products such as non-combustible/vaping products. Quantitative analysis: My discounted cash flow shows a potential significant upside in the stock, but using a future earnings multiple approach actually shows a significant downside, with the true intrinsic value likely falling somewhere between the two. Whether you guys watch the video or not, I'd be interested to hear what your thoughts are on BAT. Thanks!   submitted by   /u/HJ-InvestingYT [link]   [comments]
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  33. Vaping industry on edge as FDA decides fate of e-cigarettes (09/09/2021 - Seeking Alpha)

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  34. : Retirement-plan mandate, paid leave advance in Congress as bigger battles loom over $3.5 trillion spending package (10/09/2021 - Market Watch)
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  35. : Democrats face choice with infrastructure bill: climate-change action or bipartisan support (22/03/2021 - Market Watch)
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  36. Key Words: As Democrats push $3.5 trillion package, Republican lawmaker blasts ‘spending that drives up prices, kills jobs’ (09/09/2021 - Market Watch)
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  37. What is a good third sector (not tech or tobacco) to dump my last (for now) $500 in? (25/03/2021 - Reddit Stocks)
    I'm just starting out and have plans to just hold long term stuff and try building some money over the next 10 years. I'm currently full of tech (aapl, msft, arkg) and tobacco (mo, bti). I have the last $500 I plan on investing for now settled and ready to roll and I was looking for some advice on sectors that aren't likely to be affected by tech or tobacco just for diversification.   submitted by   /u/Zerocyde [link]   [comments]
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  38. Capitol Report: CEOs warn Biden tax hike will hurt economy as battle lines drawn in Washington (12/04/2021 - Market Watch)
    Top U.S. business leaders are stepping up pressure on lawmakers to kill off a White House plan to sharply raise corporate taxes as part of President Joe Biden's massive $2.3 trillion spending proposal.
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  39. The Wall Street Journal: Democrats debate cost of huge climate and antipoverty package (13/07/2021 - Market Watch)
    Senate Democrats were locked in debate Monday over the price tag of a package including climate provisions, child care and other programs they plan to squeeze through the chamber later this year without any GOP support.
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  40. House Democrats to push electric vehicle legislation (08/03/2021 - Seeking Alpha)

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  41. Moderate U.S. House Democrats add to division over Biden agenda (13/08/2021 - Investing.com)

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  42. The Fed: Biden will give Powell second term as Fed chair, say those who watch Washington for Wall Street (14/09/2021 - Market Watch)
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  43. U.S. House Republicans may follow Democrats in rebooting shamed 'earmarks' (10/03/2021 - Investing.com)

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  44. House Democrats reintroduce bill to lower drug prices (22/04/2021 - Seeking Alpha)

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  45. U.S. House Democrats reach tentative deal on Biden agenda (24/08/2021 - Investing.com)

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  46. Capitol Report: When is stopping carbon monoxide poisoning and protecting Saudi dissidents controversial? When you’re a House Republican — sometimes (26/04/2021 - Market Watch)
    In recent weeks, Republicans have forced Democrats' hand on so-called suspension votes, requiring roll call votes, which are time-consuming because of COVID-19 precautions. At the same time, the number of Republicans voting against the bills on average is many times the number of Democrats doing so.
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  47. Narrower drug pricing bill introduced in House by centrist Democrats (15/09/2021 - Seeking Alpha)

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  48. Solar, EV charging stocks slump as House Democrats fight over spending plans (13/08/2021 - Seeking Alpha)

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  49. House Democrats expected to propose hike to corporate tax rate, surtax on wealthy - source (13/09/2021 - Investing.com)

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