Mar. 10, 2015, 1:08 PM
- Regulatory review on the pending merger between Reynolds American (NYSE:RAI) Lorillard (NYSE:LO) will hinge on the Newport menthol brand, according to analysis.
- A survey of retailers by Wells Fargo showed a strong sense that Newport will be approved to be part of the Reynolds Every Day Low Price program which could help sales grow.
- Reynolds could also flex its muscles with retailers if Newport is part of the program.
- The addition of Newport to EDLP could squeeze out some newly-added Imperial Tobacco (OTCQX:ITYBY, OTCPK:ITYBF) brands such as Kool, Salem, Winston, and Maverick.
Feb. 26, 2015, 8:14 AM
Feb. 25, 2015, 5:45 PM
- The three largest U.S. tobacco companies - Altria (NYSE:MO), Reynolds American (NYSE:RAI) and Lorillard (NYSE:LO) - agree to pay a combined $100M to settle hundreds of pending federal lawsuits in Florida, resolving some but not all of the legal uncertainty that has hung over the industry since a class-action lawsuit was brought by state residents in 1994.
- The settlement is far less than the $500M-plus the industry has had to pay winning plaintiffs in Florida over the past decade, but it leaves unresolved more than 3,000 cases pending in state courts, cases that are bigger and more potentially damaging.
- MO and RAI each will pay $42.5M to resolve ~400 federal cases, and LO will pay $15M.
Feb. 25, 2015, 9:56 AM| Feb. 25, 2015, 9:56 AM
Feb. 19, 2015, 3:16 PM
- Lorillard (NYSE:LO) declares $0.66/share quarterly dividend, 7.3% increase from prior dividend of $0.615.
- Forward yield 3.86%
- Payable March 10; for shareholders of record March 2; ex-div Feb. 26.
Feb. 11, 2015, 7:59 AM
- Lorillard (NYSE:LO) reports wholesale cigarette volume decreased 0.9% in Q4.
- Higher pricing help offset the volume slip.
- Gross profit rate fell 320 bps Y/Y to 38.1%.
- Electronic cigarette revenue -27.8% to $39M off of a tough compare which included promotions for a brand introduction.
- The company expects to close its merger with Reynolds American in the first half of the year.
Feb. 11, 2015, 7:04 AM
- Lorillard (NYSE:LO): Q4 EPS of $0.93 in-line.
- Revenue of $1.28B (+2.4% Y/Y) misses by $10M.
Feb. 10, 2015, 5:30 PM
Jan. 28, 2015, 9:44 AM
- Shareholders with Reynolds American (RAI +1.5%) have approved an issuance of shares in connection with the company's acquisition of Lorillard (LO +0.8%).
- The merger is still subject to regulatory approval.
- The company expects a closing in the first half of 2015.
- Reynolds American merger update (.pdf)
Jan. 26, 2015, 2:26 AM
- Reynolds (NYSE:RAI) Chief Executive Susan Cameron is confident shareholders will approve the Reynolds American and Lorillard (NYSE:LO) deal this Wednesday, which will combines the two to create a more formidable rival against Marlboro (NYSE:MO).
- Shareholders of Imperial Tobacco (OTCQX:ITYBY) (the third party which is expected to buy several brands of Reynolds American as part of the deal) are also expected to approve the transaction because it turns Imperial into the No. 3 player in the U.S.
- However, the real test for the merger and the related divestiture of brands will come later this quarter, when the FTC weighs in on deal.
- Previously: The FTC asks Reynolds American and Lorillard for more info on merger (Aug. 29 2014)
Jan. 24, 2015, 8:25 AM
- In a low-yield world, the newly launched iBillionaire High Dividend Index - which tracks the trading moves of 25 investing-savvy billionaire investors such as Stanley Druckenmiller, James Dinan and Nelson Peltz - actually lives up to its name with a dividend yield of 5.34%.
- At 24%, the index has a high allocation of energy shares, including OXY, TRP, CNP, COP, BP, ATLS, CVI, WMB, APL, RIG and ARP.
- Also worth noting is that the index contains some high-yielding mortgage REITs, an area most investors hate right now but where billionaires seem to find value; examples are NRF, AGNC and CIM.
- No mutual fund or ETF tracks this index, but it offers a fishing pond of income investment ideas to research further.
- The top 20 holdings: TLM, CVC, GM, TIME, AEE, D, STAY, KMI, TROX, EXC, STNG, PPL, IRM, PFE, KKR, KAR, F, MIC, LO, ABBV.
Jan. 22, 2015, 4:08 AM
- Following in the footsteps of Australia, which two years ago enacted a law forcing cigarettes to be sold in plain olive green packaging, the British government will try to pass a law before May forcing tobacco firms to sell cigarettes in plain packs.
- Around 3.4% fewer cigarettes were sold in Australia in 2013, compared with 2012.
- The tobacco industry has fiercely resisted the new law, arguing that plain packs infringe on the intellectual property rights covering brands.
- Related stocks: LO, PM, MO, VGR, RAI, OTCQX:ITYBY, BTI
Jan. 14, 2015, 8:10 AM
- The tobacco industry will see a big tailwind this year as payments for buyouts of tobacco growers end.
- Where the extra funds will go is still unknown until Q4 reports start to roll in. Further investment in e-cig development or volume/pricing actions are possibilities.
- Morgan Stanley sees an earnings boost of up to 5% due to the development, but is cautious on the "effectively priced" sector.
- Major tobacco stocks: LO, PM, MO, VGR, RAI, OTCQX:ITYBY, BTI.
Jan. 13, 2015, 1:04 PM
- Barclays sees dividend payouts on the S&P 500 increasing 7% this year to reach a yield of close to 2%.
- The investment firm recommends buying shares of companies in the index poised for top-line growth and dividend payout boosts.
- At least 6 consumer products/services companies make the Barclays list of attractive dividend stocks.
- Hershey (NYSE:HSY): 2.01% yield
- Yum Brands (NYSE:YUM): 2.24% yield
- PepsiCo (NYSE:PEP): 2.70% yield
- Lorillard (NYSE:LO): 3.80% yield
- Wyndham Worldwide (NYSE:WYN): 1.63% yield
- Macy's (NYSE:M): 1.89% yield
Dec. 15, 2014, 7:44 AM| Dec. 15, 2014, 7:44 AM | 1 Comment
Dec. 11, 2014, 10:38 AM
- RBC Capital Markets picks Reynolds American (RAI) as its top tobacco stock for 2015.
- Though some regulatory hurdles remain to be cleared with the Lorillard (LO +0.8%) merger, the investment firm thinks the combined company will provide immediate value for shareholders.
- The last word from Reynolds was that it expected the merger to close in the first half of 2015.
Lorillard Inc is engaged in the manufacture of cigarettes and tobacco in the United States. The Company's principal products are marketed under the brand names of Newport, Kent, True, Maverick and Old Gold with sales in the United States of America.
Sector: Consumer Goods
Country: United States
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