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Lorillard, Inc. (LO)

  • Mar. 17, 2014, 8:20 AM
    • Shares of Lorillard (LO) are on the move after Goldman Sachs upgrades the tobacco concern to a Buy rating from Neutral.
    • LO +2.5% premarket
    | 1 Comment
  • Mar. 6, 2014, 10:24 AM
    • Analysts thinks there could be a wave of consolidation in the tobacco industry as the slow growth rates seen in the industry appear to be here to stay.
    • The story of the week has been Lorillard (LO -1.7%) which is reportedly a target of Reynolds American (RAI -2.8%), but other linkups are expected.
    • The rapid emergence of e-cigarettes will play a factor in the M&A activity. The stance of various regulators will be critical in determining where companies place their bets.
  • Mar. 4, 2014, 11:19 AM
    • A merger between Lorillard (LO +2%) and Reynolds American (RAI +1.4%) would face serious regulatory hurdles, notes Jefferies.
    • The deal would give the combined company close to 41% of the U.S. cigarette market.
    • Shares of both tobacco players remain elevated as investors bet that some spinoff or asset sale plan could push the deal through.
  • Mar. 3, 2014, 3:13 PM
    • Lorillard (LO +9.4%) is up sharply on volume 6X normal trading activity after a report that Reynolds American (RAI +5%) will make a bid for the company spurs buying activity.
    • Financial Times reports that if a deal for the tobacco company is struck it would for a value of over $20B, although some inside sources indicate Reynolds might peel off some of the assets in its bid.
    • Wells Fargo thinks a fair takeout price for Lorillard as a whole would be much higher than $60.
    • What to watch: Analysts think an acquisition of Lorillard would allow Reynolds to make a stronger move into the growing e-cigarette market. Reynolds plans to launch Vuse later this year, but Lorillard's Blu brand is already a force.
    | 1 Comment
  • Mar. 3, 2014, 11:09 AM
    • Shares of Lorillard (LO +4.2%) are higher on chatter that Reynolds American (RAI +1.6%) is prepping to make a bid for the company.
    • Reynolds has bankers with Lazard working on putting together an offer, according to a FT Alphaville report.
  • Feb. 20, 2014, 5:05 PM
    • Lorillard, Inc. (LO) declares $0.615/share quarterly dividend, 11.8% increase from prior dividend of $0.55.
    • Forward yield 5.10%
    • Payable March 10; for shareholders of record Feb. 28; ex-div Feb. 26.
  • Feb. 12, 2014, 7:09 AM
    • Lorillard (LO) reports total wholesale cigarette volume fell 1.6% during Q4.
    • The company's domestic market share rose 70 bps to a record 14.9% during the period.
    • On e-cigs: Lorillard says distribution of blu eCigs increased to 136K retail outlets and new lower-priced rechargeable kits helped stoke demand.
    | 1 Comment
  • Feb. 12, 2014, 7:01 AM
    • Lorillard, Inc. (LO): Q4 EPS of $0.82 misses by $0.04.
    • Revenue of $1.74B (+2.4% Y/Y) beats by $430M.
    • Press Release
  • Feb. 12, 2014, 12:05 AM
  • Feb. 11, 2014, 5:30 PM
  • Feb. 5, 2014, 7:11 AM
    • CVS Caremark (CVS) will become the first retail pharmacy chain to remove tobacco products from its shelves, according to The Washington Post.
    • The company says the move will cost it billions in revenue, but will help it make the transition to a full-service healthcare provider as its business model evolves.
    • Tobacco stocks are on watch: MO, LO, RAI.
  • Jan. 29, 2014, 1:44 PM
    • Viacom (VIA, VIAB) and Fox (FOXA) ask a federal judge to include the companies in a landmark ruling from 2006 that requires tobacco companies to broadcast educational commercials on major broadcast networks.
    • The case for both companies is strong: Viacom and Fox have a high percentage of young viewers watch programming on its popular networks.
    • Attorneys for Altria (MO -1.2%), R.J. Reynolds (RJR), and Lorillard (LO -1.2%) contend that the legal response came too late.
  • Jan. 17, 2014, 7:13 AM
    • A new report from the U.S. Surgeon General links cigarettes to even more types of illness including liver cancer, diabetes, and rheumatoid arthritis.
    • Standing out in the findings was the determination that secondhand smoke increased the risk of a stroke by 20% to 30%.
    • Smoking-related deaths in the U.S. are pegged at 480K per year, up from a prior estimate of 443K.
    • Related stocks: MO, RAI, PM, LO.
  • Jan. 2, 2014, 8:33 AM
    • Italy will impose a 80.5% tax on e-cigarettes after the government comes to the conclusion it's missing out on a major revenue stream as consumers in the nation move to e-cigs from traditional tobacco products.
    • What to watch: The global electronic cigarette market is expected to grow to $7B in 2014 on strong consumer demand, but the future of the industry is still unsettled with governments and regulators in some key markets yet to fully weigh in.
    • Bloomberg report (video)
    • Related stocks: MO, PM, LO, RAI, BTI, ITYBY.
  • Dec. 27, 2013, 7:00 AM
    • 2014 could be the make or break year for electronic cigarettes.
    • The tobacco industry plans to ramp up marketing next year and challenge opponents with its contention that "vaping" can save millions of lives.
    • Eventually, tobacco companies sees sales from e-cigs surpassing sales derived from traditional cigarettes.
    • What to watch: The U.S. accounts for 25% of global sales and is integral to the future of the e-cig industry? Will a recent ban in New York City influence other regions?
    • Related stocks: MO, PM, LO, RAI, BTI, ITYBY.
  • Dec. 20, 2013, 7:16 AM
    • The New York City Council approves a measure which will ban electronic cigarettes in many public places including restaurants and bars.
    • The tobacco industry has been banking on the "less harmful" argument with e-cigs, but could see other cities in the U.S. and abroad follow the lead of the Big Apple.
    • Related stocks: MO, PM, LO, RAI, BTI, ITYBY.
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Company Description
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.
Industry: Cigarettes
Country: United States