Approximately one month following the FDA’s menthol announcement, selloff has caused British America Tabacco BATS to drop more than 50% in value from its all time high.
Although it's understandable this is concerning for investors, I don't believe it will ultimately have a huge effect even if the ban is passed into law.
Although I remain cautious, it has pushed their valuation to an extremely attractive level and presents long-term investors with an excellent opportunity.
Tobacco stocks have traditionally held up well during bear markets, and I think British American Tobacco is a good defensive play for those who wish to be fully invested.
Although it's understandable this is concerning for investors, I don't believe it will ultimately have a huge effect even if the ban is passed into law.
Although I remain cautious, it has pushed their valuation to an extremely attractive level and presents long-term investors with an excellent opportunity.
Tobacco stocks have traditionally held up well during bear markets, and I think British American Tobacco is a good defensive play for those who wish to be fully invested.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.