The first time I saw someone smoking an electronic cigarette, I knew I’d want to invest in the electronic cigarette industry soon enough. I am not a smoker and in fact, can’t stand to be around cigarette smoke. One of the amazing things about electronic cigarettes, or e-cigarettes, is they don’t produce any smoke. The idea is, you can use these e-cigarettes to slowly taper yourself off nicotine and smoking all together. However, I see something different happening.
If what I’m hearing is true, and e-cigarettes provide a similar sensation to smoking a normal cigarette, then we all need some exposure in our portfolio or we will kick ourselves in the future. Think about it…you can smoke e-cigarettes anywhere! On a plane, in a restaurant, a theatre, heck even an elevator! There are no harmful aspects to anyone except the person smoking if they are using an e-cigarette that disperses nicotine (which most do).
Right now, Reynolds American is the main company making an aggressive attempt to gain marketshare in the e-cigarette space. As of this moment, I have not purchased any of this stock, but I expect to in the near future after a little technical analysis to determine an entry point.
Another way to play this would be with a mutual fund VICEX. This is a mutual fund that invests in companies associated with human “vices”, such as alcohol, tobacco, etc. They are all over this new trend and already own a lot of the companies that will likely be big players in this move.
Listen to today’s podcast here: