Jump to full article: AP, 2008-08-12
Author: JANE WARDELL
Intro: Sin stocks, ranging from gambling to liquor, are usually a safe bet in hard times. While shares in some of those companies have fallen along with stock exchanges this year, lots are still seeing strong revenues and sales.
"It's inelastic demand as far as many of these stocks are concerned," said Hargreaves Lansdown analyst Keith Bowman . . .
And while people can't smoke at the bar because of spreading smoking bans, tobacco companies are doing just fine.
Philip Morris International said its earnings rose 23 percent in the second quarter and it raised its earnings forecast for this year, saying it had not been affected by inflationary pressures like other consumer products companies.
"Cigarettes in general can withstand such an environment better than many consumer products," Chief Financial Officer Hermann Waldemer said at the time.
British American Tobacco PLC posted a 15 percent rise in its first-half profits with help from higher prices and increased sales of premium brands. Sales of BAT's most expensive brands, such as Dunhill and Lucky Strike, grew 7 percent.
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