In an ethics agreement, President Donald Trump's Surgeon General nominee said she would divest family holdings that include shares in tech companies and two of the world’s largest tobacco companies https://t.co/O7o8UKSusM ...

Core Points - Casey Means has been nominated for the position of US surgeon general and is taking steps to avoid conflicts of interest [1][2] - She plans to divest from family holdings in major companies, including technology firms and tobacco companies [1][2] - Means will also resign from advisory roles in health startups she co-founded [3] Financial Disclosures - The shares in question belong to Means' husband and were acquired before their marriage [2] - Means has reported employment income of at least $1.2 million over the past 18 months, with book royalties estimated between $100,000 and $1 million [5] - She has never owned individual publicly traded stocks but has equity in closely held companies [4]

Company Performance - Ispire Technology Inc. reported a quarterly loss of $0.26 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.14, and compared to a loss of $0.06 per share a year ago, indicating a significant decline in performance [1] - The company posted revenues of $20.14 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 10.1%, and down from $37.34 million in the same quarter last year [2] - Over the last four quarters, Ispire Technology Inc. has not surpassed consensus EPS estimates and has only topped revenue estimates once [2] Stock Performance - Ispire Technology Inc. shares have lost approximately 35% since the beginning of the year, contrasting with the S&P 500's gain of 12% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $46.5 million, and for the current fiscal year, it is -$0.18 on revenues of $201.6 million [7] Industry Outlook - The Tobacco industry, to which Ispire Technology Inc. belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a relatively strong position within the market [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Ispire's stock performance [5]

Group 1: SL Green Realty Corp - SL Green Realty Corp is viewed as a strong pick in the REIT sector, offering both yield and growth potential despite a 6.5% decline over the past year [1][2] - The company is expected to achieve a return of 6% to 9% over the next 18 months, with potential for double-digit returns beyond that period [3][4] - Strategic acquisitions of high-quality properties in New York City are seen as key growth drivers for the company [5][6] Group 2: AT&T - AT&T has shown a year-to-date performance increase of approximately 30%, acting like a growth tech stock while also providing a dividend yield over 6% [13][14] - The stock is anticipated to deliver double-digit growth over the next 18 months, with some near-term resistance expected [15][16] - Historical performance indicates that AT&T has provided positive returns over the long term, despite periods of volatility [16][17] Group 3: Philip Morris International - Philip Morris International is recognized for its growth potential and solid dividend offerings, with expectations of an 8% to 12% return over the next 18 months [26][29] - The company is considered a good addition to a diversified portfolio, particularly due to its international reach and growth opportunities [25][26] - Insider selling has been noted, but this is viewed as a potential buying opportunity for investors looking to accumulate shares [27][28]

Group 1: Federal Reserve and Market Dynamics - The Federal Reserve is expected to cut interest rates, but consumer sentiment has dropped to a four-month low, indicating a disconnect between Wall Street and Main Street [1] - Households are struggling with the affordability of groceries and rent, while job creation is slowing down, suggesting underlying economic weakness [1] - Despite these challenges, the S&P and Nasdaq indices continue to rise, primarily driven by technology stocks, although the performance of the "Magnificent Seven" tech companies is becoming less synchronized [1] Group 2: Commodities and Tariffs - Copper prices have experienced significant volatility due to tariff announcements, with a proposed 50% tariff causing prices to spike to record highs, followed by a 20% drop when the tariff was retracted [2] - Short-term demand for copper is uncertain as both China and U.S. economic growth slow down, but long-term demand is expected to surge due to AI data centers and electric vehicles by the late 2020s [2] Group 3: Tobacco Industry Trends - Despite a decline in cigarette smoking, the tobacco industry is thriving, with the FDA fast-tracking nicotine pouches like Zyn, which are gaining significant market share [3] - Sales of tobacco products are increasing, and stock prices are rising by double digits, indicating a robust market performance [3] - The industry's ability to adapt and reinvent itself raises concerns about potential future backlash regarding youth usage [3]

Industry Overview - The U.S. administration is considering reclassifying marijuana from Schedule I to Schedule III under the Controlled Substances Act, which could significantly impact the marijuana industry by allowing businesses to access standard banking and reducing their effective tax rates [2] - Currently, marijuana's Schedule I classification limits business deductions under Section 280E of the federal tax code, which could change with reclassification, potentially increasing profitability and attracting institutional investors [2] Analyst Insights - TD Cowen analyst Jaret Seiberg suggests that former President Trump may revive efforts to move cannabis to Schedule III, allowing for government regulation [3] Best Marijuana Stocks - **Aurora Cannabis Inc. (NASDAQ: ACB)**: Analysts project an upside potential of 4.55%. The company launched the Physician Experience Platform (PEP) to provide healthcare professionals with access to clinical insights on medicinal cannabis treatments [8] - **Turning Point Brands, Inc. (NYSE: TPB)**: Analysts project an upside potential of 5.47%. The company launched Stoker's Fine Cut Wintergreen in a compact can, responding to consumer demand and enhancing its moist smokeless tobacco line [9][10] - **The Scotts Miracle-Gro Company (NYSE: SMG)**: Analysts project an upside potential of 12.90%. The company made significant strides in sustainability, including reducing water usage for greenhouse irrigation by over 50% and achieving 100% recyclable packaging for its products [11][12]

Industry Overview - The tobacco industry is experiencing a strong year, contrary to the belief that it is shrinking, with significant sales growth in non-cigarette products [1] - The FDA has agreed to fast-track the approval process for nicotine pouches, a move influenced by the White House, indicating a favorable regulatory environment for the industry [1][3] Product Development - The FDA has historically taken a long time to approve new nicotine delivery methods, but recently approved 20 flavors of Zyn, a leading nicotine pouch brand owned by Philip Morris International, after a five-year review [2] - The agency is now expediting the approval process for pouch products from four industry leaders, with potential legal launches expected by December [3] Financial Performance - A basket of six global tobacco stocks has yielded an average total return of 43% year-to-date, showcasing strong market performance [6] - Philip Morris International reported a 32% year-over-year increase in shipments of oral smoke-free products, surpassing 200 million cans in the Americas [6] - Altria reported a 26% year-over-year growth in shipments of its Zyn competitor, with its share price up 27% year-to-date [6] Historical Context - The tobacco industry has historically outperformed all other sectors in the US from 1900 to 2015, providing financial benefits to municipalities through securitized payments from major tobacco companies [4]

Core Viewpoint - Philip Morris' stock has shown strong performance over the past year, and this trend is expected to continue for the foreseeable future [1]. Group 1: Investment Strategy - The focus is on dividend-paying companies, emphasizing the importance of stable and growing dividends for achieving high risk-adjusted long-term returns [1]. - The approach involves analyzing companies in depth and formulating compelling arguments to enhance the investment process and assist other investors [1]. Group 2: Analyst's Position - The analyst holds a beneficial long position in the shares of Philip Morris and other related companies, indicating a personal investment interest [2].

Group 1 - High dividend yields in blue-chip stocks do not guarantee safe income streams, as some may be value traps rather than genuine investment opportunities [1][5] - LyondellBasell has seen a 40% decline over the past year, with a double-digit dividend yield that appears risky due to missed earnings expectations and negative free cash flow [2] - Pfizer's stock is down 18% over the past year, with its attractive yield driven by significant declines in key income lines, resulting in a payout ratio of about 97% of free cash flow [3] Group 2 - Altria's large dividend payout is sustainable only while business remains stable, but faces risks from regulation, litigation, and declining cigarette volumes [4] - Companies in sectors like infrastructure, chemicals, and telecom may experience margin pressure and regulatory risks, impacting their ability to maintain high dividend payouts [4] - Evaluating high-yield stocks should include analysis of cash flow statements, dividend growth history, and the sustainability of the high yield [6] Group 3 - The top high-yield large-cap U.S. stocks include LyondellBasell (9.88%), United Parcel Service (7.75%), Pfizer (6.92%), Altria (6.39%), and Verizon (6.25%) [7]

Core Insights - Altria Group Inc. is a major player in the U.S. tobacco and nicotine products market, with a focus on maintaining strong core businesses while pursuing growth opportunities [1] Financial Performance - Altria is set to report its Q3 2025 earnings on October 30, with analysts expecting an EPS of $1.44, an increase from $1.38 in the same quarter last year. Quarterly revenue is projected to be $5.31 billion, down from $5.54 billion year-over-year [2] - In Q2 2025, Altria reported adjusted EPS of $1.44, exceeding the consensus estimate of $1.39, and revenues of $6.10 billion, surpassing the consensus of $5.21 billion [3] Strategic Outlook - The CEO highlighted the strong performance of the oral tobacco segment, particularly the on! product, which was a key growth driver. The company returned over $4 billion to shareholders through dividends and share repurchases in the first half of the year [4] - Altria has raised the lower end of its full-year 2025 guidance, now expecting adjusted diluted EPS in the range of $5.35 to $5.45, reflecting a growth rate of 3.0% to 5.0% from a base of $5.19 in 2024 [4] Dividend Information - Altria's current dividend yield stands at 6.41%, with a total of $4.24 per share paid in dividends over the last 12 months [2] - To generate an income of $100 per month from Altria's dividends, an investment of approximately $18,721 is required, based on the current dividend yield [6]