Woodford’s Cautious Stance See Glaxo, BAT Top 10 Holdings – Bloomberg 07-07-14

Salient to Investors:

Neil Woodford at Woodford Investment Mgmt is cautious on the global economy and is buying sectors resilient to economic downturns like drugmakers and cigarette makers.

Read the full article at http://www.bloomberg.com/news/2014-07-06/woodford-s-cautious-stance-see-glaxo-bat-top-10-holdings.html

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California Tax Imperils Best Tobacco Gain Since ’09: Muni Credit – Bloomberg 06-20-12

Salient to Investors:

Bill Black at Invesco says if Prop 29 passes, other states will raise their tobacco taxes, with significant impact on tobacco bond yields. California accounts for $28 billion of $102 billion of tobacco securities – tobacco securities haven’t beaten the market since 2009. Each 10 percent increase in tobacco prices reduces smoking rates by 4 percent.

California has the second-lowest proportion of smokers of any state, 12.8 percent, compared with 20.6 percent of adults nationwide. Richard Larkin at Herbert J. Sims & Co. said Prop 29 passing could decrease smoking by 10 percent in the state and 2 percent nationally.

Janney Montgomery Scott said cigarette consumption fell 3 percent in 2011, the smallest drop since 2006, and is down to less than 300 billion in 2011 from a peak of 640 billion cigarettes in 1981.

Read the full article at http://www.bloomberg.com/news/2012-06-20/california-tax-imperils-best-tobacco-gain-since-09-muni-credit.html