Word is starting to leak out that the Food and Drug Administration is about to exert its power over the increasingly popular electronic cigarette market.
Demand for e-cigs continues to gain steam; Lorillard (NYSE:LO) controls half the market and saw 25% growth from its Blu brand. However, watchdog groups are up in arms over the industry's loose regulations, highlighting what they see as youth-friendly flavors like tuti-frutti and skyrocketing rates of poisonings from inhaling too much nicotine vapor.
On this edition of Market Checkup, Motley Fool health-care analysts David Williamson and Michael Douglass discuss the FDA's coming regulatory power move, how this could affect tobacco stocks, and what they see as the long-term sales potential of e-cigs.
David Williamson, Michael Douglass, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.