Philip Morris (PM) is in bit of an interesting situation. You see, the days of the cigarette are numbered, and it's something that big tobacco knows. While Philip Morris and others have spent massive amounts of money in order to stop anti-smoking laws around the world, their delays of these laws will only last so long. This mixed with the idea that consumers are becoming more health conscious and less likely to smoke cigarettes leads to a bit of a struggle for tobacco giants like Philip Morris. However, the company is making an attempt to change the game in a big way, and if they are successful, the stock could climb. Today, we'll talk about what Philip Morris is doing, why it could send the value of the stock soaring, and what binary options traders should be watching for ahead.

What Philip Morris Is Doing That Could Change The Game

Once again, even the billionaire tobacco moguls know that the day of the cigarette is going to come to an end, and likely one day relatively soon. With several studies showing the dangerous effects of cigarettes over the last several decades, governments around the world have been working to rid the public of this toxic product. So, what does a company like Philip Morris need to do to survive? Well, the answer is to change the shape of their products.

Like most big tobacco companies Philip Morris is seeing the light at the end of the tunnel, thanks to the vape pen trend. A vape pen is a battery operated device that delivers nicotine filled vapor to consumers, and many believe that this is a safe alternative to cigarette smoking. As a result, the vape trend is taking off in a big way at the moment.

Of all the large tobacco companies out there, Philip Morris seems to be making the smartest use of this news. You see, the company not only offers its own vape pens, it is working on gaining a new classification around them. Ultimately, Philip Morris wants government health authorities to recognize that its brand of vape pen is a safe alternative to cigarettes.

Throughout the past several years, Philip Morris has funded several studies and welcomed independent studies surrounding its vape pen products. Due to the overwhelmingly positive results of the vast majority of studies surrounding its IQOS vape pen, Philip Morris submitted a “modified-risk tobacco product” application to the FDA in December of last year.

What This Could Mean For Philip Morris

At first glance, it's clear why big tobacco is getting into the vape industry, but the benefits of spending millions of dollars on studies to create a product that the FDA sees as reduced risk may seem a bit cumbersome. However, the truth is that this is an incredibly smart move. At the end of the day, Philip Morris is the first to submit a “modified-risk tobacco product” application surrounding vape pens. If this application is approved, it will give the company a massive competitive advantage in the market.

Think about it, if the application is approved. Philip Morris will have the only vape pen approved to be marketed as a safer alternative to smoking cigarettes. So, when consumers are looking to start using vape pens and quitting smoking, well, the Philip Morris option will likely be the option chosen by most. This could lead to the IQOS pen being a massive profit driver for Philip Morris.

What Binary Options Traders Should Be Watching For Ahead

Moving forward, binary options traders should be keeping a close eye on Philip Morris as the stock is likely to present several opportunities ahead. However, if you want to take advantage of these opportunities, it's going to be important to keep a close eye on the news. In particular, pay close attention to what's happening in the vape pen world, in particular, pay attention to studies surrounding the safety of vaping. While there are some negative studies specific to IQOS, many believe that these studies are biased and that the pen will be approved to be marketed as a safe alternative to smoking. Follow the news surrounding the application and the ongoing studies surrounding the matter for clues as to where Philip Morris is headed next.

What Do You Think?

Where do you think Philip Morris is headed moving forward? Join the discussion in the comments below!