Juul cancels plans to expand outside the US, reportedly considering bankruptcy

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ALTRIA ($NYSE:MO): Embattled e-cigarette manufacturer Juul Labs Inc. is canceling plans to branch outside the US, according to the Wall Street Journal. This news comes shortly after reports that the vape manufacturer is considering filing for bankruptcy. Juul has been facing intense scrutiny in recent months, with the FDA cracking down on the company for its marketing practices and allegations that its products are contributing to the teenage vaping epidemic. The company has also been hit with a number of lawsuits, alleging that its products have caused health problems.

Juul’s decision to cancel its international expansion plans and potentially file for bankruptcy is a sign of the mounting pressure the company is under. It remains to be seen how this will impact the company’s future.

Share Price

This is due to the negative media exposure the company has been receiving as of late. On Thursday, shares of Juul’s parent company, ALTRIA GROUP, Inc. opened at $42.80 and closed at $43.00, up by 0.2% from its previous closing price of $42.90. This came after news of the company’s possible bankruptcy filing.

VI Analysis

Altria Group is a publicly traded holding company for Philip Morris USA, John Middleton, Nat Sherman, Ste. Michelle Wine Estates, and Philip Morris Capital Corporation. They are headquartered in Richmond, Virginia. The company’s fundamentals reflect its long term potential.

However, the company does have some risks. The VI app has detected 2 risk warnings in the income statement and balance sheet. These warnings indicate that the company’s margins may be under pressure and that its debt levels are high. Overall, the company is a medium risk investment in terms of financial and business aspects.

Summary

Based on the current media exposure, it may not be the best time to invest in ALTRIA GROUP. This is because the company is currently facing a lot of negative publicity due to its association with Juul. Juul is a company that makes e-cigarettes and has been accused of targeting minors with its marketing. As a result, ALTRIA GROUP’s share value has been dropping.

However, if you are patient and believe that the company will eventually recover from this issue, then investing in ALTRIA GROUP may be a good idea.