Philip Morris (PM), like most other tobacco companies, has been facing stringent regulations and changes among consumer habits. Nonetheless, the stock has been moving up, and for good reason. The company is focusing more heavily on the e-cigarette market, which seems to be growing dramatically. Today, we’ll talk about why the tobacco industry is changing, another move Philip Morris recently took to take advantage of that change, and what binary options traders should be watching for ahead!

Why The Tobacco Industry Is Changing

In the beginning, the tobacco industry boomed. While no one quite knew it, tobacco is overwhelmingly addictive, and those who enjoyed smoking cigarettes got hooked on nicotine, the addictive ingredient found in tobacco. However, back then, the effects cigarettes had on the health of their users weren’t known either. That has changed, and in a big way.

You see, decades ago, studies started to show that cigarettes weren’t just something that some consumers enjoyed, they were actually killing people. Over time, it became public knowledge that not only were cigarettes addictive, they were overwhelmingly dangerous. In fact, smoking was shown to cause cancer, heart disease, COPD, and other life-threatening conditions.

As science continues to prove that smoking is bad for the health of those that do it, not only are consumers becoming more and more aware of the risks, entire governmental bodies are fighting against the use of tobacco. This has caused quite a bit of money to be spent on legal and lobbyist expenses on behalf of tobacco giants like Philip Morris.

Philip Morris Is Making A Key Transition

While cigarettes are still the flagship product of Philip Morris, the company is making a shift to ensure that it can continue to thrive with the ongoing change of tides. The big push is a push toward e-cigarettes. With technology has come what many perceive to be a healthier form of smoking. By adding flavors and nicotine to polypropylene glycerol or vegetable glycerin, and offering it as a vapor to smokers, the sensation caused by the addiction is relieved without many of the chemicals included in combustion that are known to cause illness.

This is an area where Philip Morris intends to dominate. In fact, the company not only already offers its own e-cigarettes, they’ve pledged to spend $324 million on converting one of its cigarette factories in Greece into an e-cigarette factor; focusing only on low-risk products. Many believe that this transition to e-cigarettes will be great for the large tobacco giants that take advantage of the trends, and that Philip Morris is positioned to dominate the industry.

What Binary Options Traders Should Be Watching For Ahead

Moving forward, Philip Morris is likely to present several opportunities for binary options traders. However, if you want to take advantage of these opportunities, you’ll have to stay on top of the news. In particular, pay incredibly close attention to ongoing, global governmental action against cigarettes and other tobacco products. Also, keep a close eye on what’s going on in the e-cigarette industry and the companies involvement in the industry. I have a feeling that news with regard to e-cigarettes will lead to quite a bit of movement in Philip Morris ahead.