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and 2) inventory levels were very low at the start of the 2Q and were likely built up during the quarter." Tobacco analyst Nik Modi of UBS, New York, generally agreed, and in a research note said, "We believe the timing of the price increase will leave ample time for wholesalers to work down inventory by the end of 2Q12 (as many of them loaded up over the past few weeks in anticipation of an increase)." He added, "We continue to see pricing as the key driver of tobacco profits and stock performance