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John P. Gavin, CFA, is the founder and CEO of Disclosure Insight®, an independent publisher of investment research. Mr. Gavin has spent his entire career of over 25 years in the financial services industry. Prior to starting “DI” in 2000, he worked as an equity analyst and portfolio manager... More
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  • LO Carries Lowest Risk Among the 5 Companies We Follow in the Industry 0 comments
    Dec 29, 2011 10:54 AM | about stocks: LO, MO, PM, RAI, VGR

    D.I. Perspective: Based on an analysis of our 100 risk factors, Lorillard, Inc. (NYSE:LO) carries the lowest risk among the 5 companies we cover in the cigarette industry. Our observations in the attached report break down each of the risk categories we regularly cover in addition to special risk factors we analyzed for purposes of this industry report.

    When we assess the risk carried by a company, we consider the number of individual risk factors associated with the company as well as the nature, context, timing, and severity of the risk factors. After analyzing each cigarette company, we concluded that LO has the most favorable risk profile. LO was the only company we rated Medium Risk - Positive Bias (only Low Risk is better). We rated the other 4 cigarette companies Medium Risk - Negative Bias (only High Risk is worse). The attached report summarizes the risk factors we found for each company that contributed to the risk rating. Although VGR had the fewest number of risk factors, the company’s related party transactions are significant enough to warrant our Medium Risk - Negative Bias rating. 

    Data presented in the attached report (originally published on 8-Dec-11) was taken from the above 5 companies’ most recent 5 years of SEC filings as of publication of the report.

    Stocks: LO, MO, PM, RAI, VGR
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