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Star Scientific Inc. (CIGX) Finishes a Decent 2009, Continues Work on a Variety of Nicotine Free Projects

In many cases, when a very large company starts to take notice of what a smaller, similar company is up to there is cause to make a metal note. Larger companies are always on the lookout for possible competition, but also for the possibility of horizontal expansion. It might take a little longer than an investor would like, but profit may be there.

Star Scientific Inc., a company oriented toward developing processes that deter the formation of carcinogens on tobacco leaves and tobacco smoke, works to market its products in conventional ways toward cigarettes, but also in other ways that may not be quite as obvious.

One might be hard pressed to understand how a tobacco leaf could offer support in addressing issues such as Alzheimer’s, Parkinson’s or Schizophrenia diseases. The primary reasoning in the positive work in this area is that the process uses a botanical tobacco-based component where the nicotine has been prevented from forming on the leaf. This is not to suggest that an application is due anytime soon but rather that company could become very attractive very quickly if an investor has a long time-line.

Although small by comparison, the company did see a pick-up in sales at the end of 2009. Its on-going issues with RJR Reynolds drew down on capital reserve by almost $2 million at the end of 2009 with a resolution apparently near. Overall, this particular dispute could signify several things; although RJR’s interest in what Start Scientific has in it labs could be a solid wager.

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