A big basket of companies is represented by sin stocks. The operations of these companies are widely taken into account to be somewhere between downright unethical at worst to morally dubious at the best. The common thing which is binding such firms is that these are usually exploiting human vulnerabilities and weaknesses in the form of destructive addictive activities including gambling and cigarette smoking. A definition like this, however, can be employed easily to various other firms which usually avoid labeling them as sin stocks, such as food companies that are making their chemical-laden and sugar productive highly addictive – resulting in the increased obesity epidemic, or to different social media channels that are exploiting similar type of psychological triggers which are making gambling a highly addictive activity that users get glued to these social platforms for the sake of more likes and followers. That said, the motive behind this article is to share details of those companies which are regarded as sin stocks, though we must not become judgemental in any way about these companies and obviously not about those who are investing in these sin stocks. The list of 5 Best sin stocks is based on the post by Insider Monkey.
On 5th position in the list of 5 best sin stocks is Las Vegas Sands Corp. The shares of the company were found in the 13F portfolios of around 47 different hedge funds on 30th September, that shows a 5-year high besides the throwaway of the company in 2020, which reveals a lot regarding how positively the post-covid prospects of casino operators are viewed by hedge funds. The share of LVS increased by 17% in October and this is due to the positive developments made towards the COVID-19 vaccine. According to the views of analysts, if there remains such high demand for leisure and travel spending post-pandemic, the current price of a share is possible to appear as a high bargain by the upcoming summer. On number 4th is, Philip Morris International Inc., which is a dividend-paying tobacco stock. This sin stock is owned by 50 different hedge funds in their particular 13F portfolios on 30th September. The fund stated in the first quarter investor letter that the strong pricing power and the balance sheet of Philip Morris is not considering COVID-19 as a pandemic, but also a transition from conventional cigarettes to latest alternatives such as heated tobacco whose sales increased by 44% during the last year for Philip Morris. Want to learn about more sin stocks? You can jump to the Yahoo post on Top 10 Sin Stock To Buy.