Seeking Alpha

CNBC: Tobacco dominoes about to fall

  • Shares of Lorillard (LO +4.6%) are higher after CNBC reports its sources indicate a merger of the company with Reynold American (RAI +1.6%) will be announced within weeks.
  • In the deal sidecar: Imperial Tobacco (ITYBY) is expected to buy some assets in order to make the deal palatable for regulators, while British American Tobacco (BTI) is tapped to be part of the festivities as an investor in Reynolds.
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Comments (9)
  • maybenot
    , contributor
    Comments (4474) | Send Message
     
    wow. looks like a big "I'll scratch your back, you scratch mine" party going on.

     

    It's good to be king(s).

     

    Suppose once this gets done, then the Feds can come out with their updated menthol restrictions.

     

    What a business tobacco is. Helped build our infant slave-nation. It's good to be a winner.

     

    Long LO, MO, PM (and wish I had BTI)
    3 Jul 2014, 11:17 AM Reply Like
  • garyc8710
    , contributor
    Comments (49) | Send Message
     
    I thought I was hallucinating when I checked my portfolio balance this morning.
    3 Jul 2014, 02:07 PM Reply Like
  • Jimjiminy
    , contributor
    Comments (29) | Send Message
     
    This I like. Bought LO in Feb at $47, if it comes anywhere near $95 I'm selling half my holdings and taking my capital back. Yummy.
    3 Jul 2014, 02:25 PM Reply Like
  • maybenot
    , contributor
    Comments (4474) | Send Message
     
    $95!?! -- Ye gods! -- I thought $80 was ridiculous when someone mentioned it a couple weeks ago. And now, I'm not so sure.

     

    But still, $95? Who knows.
    3 Jul 2014, 02:34 PM Reply Like
  • Jimjiminy
    , contributor
    Comments (29) | Send Message
     
    To be honest, I think you're right - probably far wiser to sell 60% at $80, rather than hanging on for a peak which might never come. As Rothschild (allegedly) said, the real way to make money is “never buy at the bottom and always sell too soon.”
    3 Jul 2014, 03:51 PM Reply Like
  • maybenot
    , contributor
    Comments (4474) | Send Message
     
    Some allegedly good words there.

     

    It will be interesting to see how this all works out. I'm still weighing my possible actions on LO and what is offered.

     

    We shall see.
    3 Jul 2014, 04:02 PM Reply Like
  • jowalern
    , contributor
    Comments (9) | Send Message
     
    Best case scenario:
    1. RAI buys LO for cash and stock.
    2. BTI buy RAI for a ridiculous price.
    3. Reduced competition and BTI keeps going up.

     

    Anyway, I've got a 50% profit and it is growing.
    3 Jul 2014, 06:17 PM Reply Like
  • joseph nanci
    , contributor
    Comments (38) | Send Message
     
    PLEASE,PLEASE????????? DON'T COUNT YOUR CHICKEN BEFORE THET HATCH.
    4 Jul 2014, 05:22 PM Reply Like
  • Sunshine123
    , contributor
    Comments (772) | Send Message
     
    I agree with joseph nanci. We will soon know which way the dominos fall.
    9 Jul 2014, 11:11 PM Reply Like
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