FDA Statement On Menthol Cigarette Ban Rattles Tobacco Stocks - But Will It Improve Health?
Last week the U.S. Food and Drug Administration hinted a restriction on menthol in cigarettes might again be coming - and the stock markets reacted as expected, reading a government restriction as the first step toward a ban, which led to a casual government statement costing investors billions. Domestic cigarette company Altria stock dropped 3.6 percent, and it probably still isn't a good buy, since it was at a price/stock ratio of 4.7, about 30 percent above other cigarette companies.
British American Tobacco (which makes Newport and Lucky Strike) fared even worse, because about 25…