Company Overview - Turning Point Brands is a leading consumer products company focused on tobacco and alternative smoking products, with a diversified portfolio of well-established brands [6] - The company leverages a multi-segment strategy, targeting both traditional tobacco consumers and those seeking alternative products [6] - Turning Point Brands holds a No. 1 market share in rolling papers and cigar wraps with its Zig Zag brand and the top spot in loose-leaf chew [11] Financial Performance - As of December 1, 2025, Turning Point Brands' shares were priced at $97.61, reflecting a 58% increase over the past year, outperforming the S&P 500 by 45 percentage points [3] - The company has a market capitalization of $1.86 billion, with revenue for the trailing twelve months (TTM) reported at $435.72 million and net income at $52.37 million [4] - In its latest quarter, Turning Point Brands reported a 31% increase in sales and an 18% increase in adjusted net income [10] Investment Activity - Prospect Capital Advisors, LLC disclosed a third-quarter purchase of 59,250 shares of Turning Point Brands, increasing its position by an estimated $6.65 million [1][2] - The increased stake was valued at $9.25 million at quarter-end, representing 4.8% of Prospect Capital's reportable assets under management [2] Growth Potential - Turning Point Brands is expanding into the modern oral nicotine industry, which has seen can volume grow by 58% annually since 2020, indicating potential for future growth [11] - The company's distribution network and brand recognition provide a competitive edge in the consumer defensive sector [6] Valuation Considerations - Turning Point Brands trades at 34 times earnings, necessitating steady growth from its new growth areas to support this valuation [12]