Tobacco industry

Tobacco industry securities declined sharply in the 1st qtr 1996 but experts are predicting that the industry will have high earnings and prices for the next six months to one year and probably for several years beyond 1996. Tobacco industry expansion into new or developing foreign markets should offset and surpass the negative impact of Liggett's liability case settlement, the anti-tobacco furor that has caused pension funds to stop investing or withdraw from tobacco companies, and an increase of state government suits to recover Medicaid costs. Tobacco industry stocks are a good investment for those who are willing to risk litigation outcomes.