This Little-Known Tobacco Stock Is Getting a Huge Boost
The Food & Drug Administration (FDA) is busy these days. Even as a recent decision could effectively hand the electronic cigarette market to British American Tobacco (NYSE: BTI) by banning chief rival Juul Labs from store shelves, it has also taken another momentous step that could lift a small, largely unknown tobacco stock to prominence.
The FDA announced that it will publish a new rule next year to eliminate virtually all nicotine from cigarettes sold in the U.S. If approved, it could catapult tiny tobacco company 22nd Century Group (NASDAQ: XXII) to the top of the cigarette industry because it already grows tobacco with up to 95% less nicotine than the tobacco used in conventional cigarettes.
Shares of 22nd Century have shot up almost 60% since the plan was announced, and it could be the company that cigarette makers turn to in a bid to comply with new regulations. It may be years before anything is decided, but the low-nicotine tobacco grower will be one to watch.
Source Fool.com
