Swedish Match Analysis – The Scandinavian Sin Stock

ByQuantified Trading

The company: (Swedish Match was acquired at a huge premium by Philip Morris after the article was published.) Based in Stockholm, Sweden, and listed on the Stockholm Exchange with the ticker SWMA, Swedish Match is a company that makes snuff, snus, chewing tobacco, cigars, matches and lighters. It was originally a matchstick company (merged with…

Sin Stocks Investment Strategy (Why Unethical Stocks Outperform)

ByQuantified Trading

A specific group of stocks has outperformed the rest of the stock market by a wide margin: Sin stocks. We can also label these stocks “unethical stocks”. Sin stocks outperform the market because the industry has high barriers to entry, high margins, requires little capital, the products are addictive, and regulation leads to oligopoly for…