Philip Morris International $PM (-7,19%) is reinventing itself, combining the stability of its core business with the incredible potential of new markets. The solid cash flow from traditional tobacco sales is financing a forward-looking transformation.
With three innovative product categories $PM (-7,19%) new markets:
● Tobacco heaters (Heat-not-Burn) (IQOS)
● E-cigarettes (Vapes) (VEEV)
● Tobacco-free nicotine pouches (ZYN)
These products are in tune with the times and already account for over 40 % of total sales responsible. With forecast growth rates of approx. 20 % per year in these segments and a leading market position stands $PM (-7,19%) faces a promising future. Particularly noteworthy is the first approval for the sale of nicotine pouches in the USA. (PMTA approval from the FDA) With this approval, Philip Morris can can legally sell nicotine pouches and, unlike its competitors, has the security of being able to put all its eggs in one basket.
Opportunities:
● Strong diversification in growing markets.
● Leading market shares in future-oriented products.
● Stable financial foundation.
Risks:
● Dependence on the shrinking cigarette market.
● Strict government regulations and potential penalties.
Through intensive research of almost all comparable tobacco companies, is $PM (-7,19%)
by far the best positionedhas the least dependence on the cigarette business and offers the greatest growth. I therefore see a positive risk/reward ratio and have bought a few shares. 🚬
PS: Such an investment is morally very reprehensible. Tobacco consumption in the form of cigarettes kills millions of people every year.
