Hedgeye analyst Matt Hedrick covers consumer staples and one area of focus is electronic cigarettes within the tobacco industry. Hedrick added Lorillard (LO) as a high-conviction long to Investing Ideas on 3/7/14 (it’s up 20% since then). Included in his thesis is the longer-term earnings power from blu, its e-cigarette brand.
Today’s poll question was: Are electronic cigarettes a fad or here to stay?
At the time of this post, 72% said electronic cigarettes are HERE TO STAY; 28% said it’s a FAD.
Of those who voted that e-cigarettes are HERE TO STAY, they explained:
- “Vaporizing is the future of smoking anything, herbs, nicotine related products. There is no tar, extra filler products, and harmful second hand smoke. All of my friends that used to smoke now vape, because they also do not feel short of breath. I also know multiple people that used e-cigs to quit smoking all together. It is time to move on from traditional methods of smoking and embrace this new technology."
- “They are at least a long term fad. Here for 10-20 years and vaporizing marijuana will be the preferred delivery as legalization spreads.”
- “Not only here to stay as smoking replacement, and as a new addiction of its own, but will also become the delivery technology of choice for legal marijuana. this will be multi billion $ industry.”
- “For people who have struggled to quit smoking or always on the verge of starting to smoke again, they offer a great compromise as they replace the nicotine and the physical habit of smoking. As always, better not to start in the first place... cost and smell are just 2 huge additional benefits.”
- “4-7% of smokers have success in quitting. Smoking as a practice is obviously here to stay. The question is whether the electronic cigarettes ‘take the edge off.’ Seems likely.”
Conversely, one voter who believes it’s a FAD said, “Stick with the patch, I did. Most doctors are adamantly against them and are claiming that there are unhealthy elements within the vapor. Look for the FDA to pooh pooh the idea.”
Another agreed: “Someone will come up with a more natural version of an alternative cigarette (different than American Spirits) and potentially wipe out the e-cig category.”