Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of cigarette manufacturer Vector Group
So what: The news out today from Vector is regarding the company's private placement of $90 million of its 11% senior secured notes. However, it's hard to believe that's what's driving the stock down. While it's not ideal that the company is raising money at that high of a rate while we're in such a low-rate environment, the company had already told investors this was coming earlier in the week. Additionally, cigarette manufacturers are no strangers to leverage -- others like Altria
Now what: Fellow cigarette-industry player Schweitzer-Mauduit
Want to keep up to date on Vector? Add it to your watchlist.
The Fool owns shares of Altria Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy assures you no Wookiees were harmed in the making of this article.