Star Scientific, Inc. (NASDAQ:CIGX)
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The Company is engaged in developing, implementing and licensing scientific technology for the curing of tobacco and also manufactures, markets and develops very low-nitrosamine smokeless tobacco products and selling of discount cigarettes.
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This is now currently my worst pick. The reason STSI jumped 60% today was simply because they won a court case. Whoop tee doo! The fundamentals of this tobacco company are atrocious. I have estimated its intrinsic value to be less than $1. The company makes no profits. Sales have fallen almost 100% from 2004. How can a company stay in business and make no money? And as a tobacco company trying to make tobacco "safe" to smoke really is one of the worst profit motives I have ever seen. Tobacco chewing, smoking, etc. will never ever be healthy and will always contribute carcinogens to the lungs of smokers. To base an entire business on such a proposition that tobacco smoke can be made more healthy is preposterous. They are diluting shares outstanding to raise more capital and also are selling bonds which no doubt must be junk status. This is the only way STSI can finance its operations. It is not making any money from the selling of a product. Even worse, they are losing money. Smokeless tobacco which is somehow "healthier" to chew? That market will never grow at any significant rate. The market for smokeless tobacco will either stagnate or fall, from the fact of how unhealthy and archaic the practice is.
In my opinion, this stock is a short sell. I lost a huge amount of points today, but this stock doesn't have the goods. Whatever institution(als) traded this one up on one piece of news definitely aren't looking at any of the financials.
My rating has suffered almost entirely because of this pick, but I will hold strong. This company is hardly worth $1 per share.
You are a jacka$$ my friend. Its all about the lawsuit, who cares about the business, when star gets bought out at a stock price of 20, who gives a rats a$$ if smokeless tobacco is healthy or not? It could cause Aids for all I care, take your buyout money and go
You are a jacka$$ my friend. Its all about the lawsuit, who cares about the business, when star gets bought out at a stock price of 20, who gives a rats a$$ if smokeless tobacco is healthy or not? It could cause Aids for all I care, take your buyout money and go
exactly. it IS all about the lawsuit. it's a david vs. goliath case and guess who the jury is gonna vote for? big tobacco? i think not. case might get settled out of court before trial, or Star might get bought out by big Pharma -- but either way stock's going thru the roof!
lol, what's with the name calling? This is a pure fundamentals/valuation call for me. Nothing more, nothing less. I stick by my pick. The company is garbage.
All of you were flat out wrong!