I explained the primary significance of the recent FDA announcement for cigarette company shareholders in my recent article, Cigarette Companies Have A Problem, so I won't rehash that information here.
Stock Price Has Underperformed
I only invest in securities that are priced significantly below my estimate of their intrinsic values, so a significant recent stock price underperformance is usually a good place to start. I then consider more than two dozen fundamental factors to better understand the reasons that led to the undervaluation, and finally I set target prices at which I would allocate certain percentages of my diversified portfolio.
