Morgan Stanley puts the brakes on Lorillard

Lorillard (LO -1.9%) trades lower after Morgan Stanley downgrades the company to an Underweight rating.

The investment firm thinks the takeover premium on Lorillard has outrun itself to offer investors very little upside.

There's also some caution issued on the risk of the menthol-heavy Newport brand.

What to watch: Look for a defense from Wells Fargo analyst Bonnie Herzog who is far out on the Lorillard limb.

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Comments (6)
  • Bobco23
    , contributor
    Comments (240) | Send Message
    Thanks MS. I needed a buy/write entry point. Got it.
    24 Jun 2014, 12:19 PM Reply Like
  • jumpnjoey77
    , contributor
    Comments (1205) | Send Message
    These tobacco stocks are trading like dot com stocks in 2000.
    24 Jun 2014, 12:33 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (4369) | Send Message
    Thats BS. Newports will be sold worldwide and this will go through, tho it may take a while and there will be a lot of haggling before it happens.
    24 Jun 2014, 03:59 PM Reply Like
  • Dennis Tikkanen
    , contributor
    Comments (155) | Send Message
    Lorillard e-cig holdings make it a very attractive takeover target, especially given e-cigs' exponential growth.
    24 Jun 2014, 04:12 PM Reply Like
  • aaronsams
    , contributor
    Comments (11) | Send Message
    newports are already sold world wide and the reason that the board put such an outrageous asking price on the company is because they truly didn't think that any one would be foolish enough to pay that kind of premium for Lorillard!at 30 billion there will be no strategic value left in any of there brands and Reynolds American as always will be destroying a perfectly good company with nothing to show for it in the end but a lot of debt and a empty pocketbook!
    24 Jun 2014, 09:30 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (4369) | Send Message
    Interesting take. What is your source???


    Supposition doesnt count.
    24 Jun 2014, 10:18 PM Reply Like
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