Reynolds American (RAI) is a company that has been one of the leaders in the S&P 500's growth. It is the parent of R.J. Reynolds -- America's #2 cigarette maker. In March 2000, Reynolds American was an $8 stock.
Today, RAI trades around $66. The company’s impressive growth stems in part, from the leadership of CEO Susan Ivey who joins the guys for this conversation.
Are you comfortable with the litigation scenario around the world?
“The litigant environment has improved and that’s shown by the confidence investors have shown in the stock,” says Ivey.
How do you survive the decline of U.S. smokers?
Cigarette consumption is declining and that will continue. She says that Reynolds American will grow market share in a declining industry and has 3 operating subsidiaries that are in growth segments – specifically the Conwood companies in the smokeless arena (chewing tobacco).