After unconfirmed reports came out that Juul vape products might be removed from U.S shelves. Altria (NYSE: MO) went down from $45 to $41 per share on Wednesday since it owns a 35% stake in Juul.
FDA has already banned Juul’s vaping device and four flavor pods: Virginia tobacco flavored pods with nicotine levels of 5% and 3% and menthol-flavored pods at nicotine concentrations of 5.0% and 3.0%
E-cigarettes have already been popular among underage users. Thus FDA would find a righteous deed in prohibiting vaping products to minors. However, Altria could lose a big investment in Juul as it has injected $12.8 billion in 2018.
Adding flavors to vapes has made Juul very popular while minors like such delicious smell although they pose danger to their health. In some states, Juul offers only three or a few different flavors. Its vapes could also be ordered from Juul.com, Amazon, and other retailers.
M shares may decline further if FDA confirms forcing the company to remove more products from the shelves. So stay alert in case you are really ready to short the stock. Remember, a 35% stake in Juul directly impacts Altria, the giant tobacco maker.
In the morning trading session, Altria stock rebounded by 3% and later it went down to $41. Currently, MO has already traded over nine million shares in volume.