Jul. 30, 2014, 7:16 AM
- Lorillard (NYSE:LO) reports cigarette volume fell 3.4% Y/Y in Q2 - mark which is better than the estimated industry average.
- The Blu brand had an e-cig market share of close to 40% despite new competition. The Newport brand bumped up its market share by 30 bps.
- Lorillard's total retail market share for cigarettes was up 20 bps to 15.0%.
- The merger with Reynolds American is expected to close in 1H of 2015.
- LO +1.5% premarket
Jul. 15, 2014, 10:53 AM
- Tobacco stocks slump as a group after Lorillard doesn't catch the premium in the Reynolds American buyout that some anticipated.
- Even Imperial Tobacco which ended up with the hot Blu e-cigarette brand as part of the deal is having trouble shaking off the pessimism.
- Decliners: Lorillard (NYSE:LO) -7.9%, Philip Morris (NYSE:PM) -1.3%, Altria (NYSE:MO) -2.1%, Vector Group (NYSE:VGR) -0.8%, Reynolds American (NYSE:RAI) -4.0%, Imperial Tobacco (OTCMKTS:ITYBY) -2.8%, British American Tobacco (NYSEMKT:BTI) -1.4%.
Jul. 11, 2014, 7:18 AM
- Shares of Lorillard (LO) are higher in early trading after Reynolds American (RAI) confirms an earlier report that it's in talks with the company over a buyout.
- Reynolds says British American Tobacco will support the transaction by subscribing additional shares.
- Imperial Tobacco (ITYBY) will snap up key brands to help make the deal more likely to sail past regulators.
- LO +4.6% premarket
Jul. 10, 2014, 2:43 PM
- Shares of Lorillard (LO +0.4%) perk back up after a report yesterday on British American Tobacco buying out the portion of Reynolds American it doesn't own threw a scare into investors.
- Some tobacco industry analyst think Reynolds buying Lorillard is still the most likeliest scenario in the coming shakeup in the sector.
Jul. 3, 2014, 10:18 AM
- 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.
Jun. 18, 2014, 9:02 AM
- Wells Fargo analyst Bonnie Herzog is fairly confident (90%) that a deal in which Reynolds American (RAI) pays up to $80 per share for Lorillard (LO) is still likely (CNBC interview video).
- Herzog thinks a combination of the two companies will "catapult" the e-cigarette business.
- LO +2.0% premarket to $63.01 giving investors plenty of upside still if the Wells call is correct.
May. 22, 2014, 10:36 AM
- Shares of Lorillard (LO -5.5%) retreat after reality sets in that a deal for the company to be purchased by Reynolds American (RAI -1.8%) is complicated and could take some time to work out. The third wheel in the merger mix is British American Tobacco (BTI -0.9%) which owns 42% of Reynolds and could make a play for the whole company after a standstill agreement expires in July.
- Analysis is divided on if a deal will end up being completed at all. Stifel thinks regulators will jump in over the dominance in menthol a combination of the tobacco companies would create - while Wells Fargo's read is much more optimistic.
- Vector Group (VGR -1.6%) has been taken for a ride along with Lorillard and Reynolds, popping yesterday and deflating today.
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.
Mar. 3, 2014, 11:09 AM| 26 Comments
Jul. 23, 2013, 1:31 PMWeakness in Reynolds America (RAI -2.3%), Altria (MO -2.6%), and Lorillard (LO -4.3%) following FDA guidance on the dangers of menthol cigarettes is likely a buying opportunity Wells Fargo says. The language used by the FDA is "somewhat softer than the menthol language from TPSAC's recommendation," analyst Bonnie Herzog notes, adding that this suggests "a ban is very unlikely." Asked about the report on this morning's call, MO CEO Martin Barrington said: "I heard about the headline when I walked into the room and was focused on the call, so I haven't looked at any of this." (Also: MO earnings, CC transcript) | 3 Comments
Jul. 23, 2013, 12:09 PMCigarette makers sink after the FDA says menthol in cigarettes appears to pose a greater health threat than regular cigarettes and indicates it plans to issue rules based on its findings. The agency says menthol could make young people more likely to smoke by reducing the irritation and harshness of cigarette smoke. Menthol comprises ~30% of the cigarette market. LO -4.2%, RAI -2.6%, MO -2.5%. | 16 Comments
May. 29, 2013, 12:46 PMTobacco stocks trade lower as higher Treasury yields are taking just a bit of the shine off the group as a good dividend income play. Decliners: Altra (MO) -2.1%, Reynold American (RAI) -2.2%, Lorillard (LO) -2%; Vector Group (VGR) -1.7%, Philip Morris (MO) -1.8%, British American Tobacco -2.3%. | 5 Comments
Mar. 6, 2013, 10:04 AMTobacco stocks struggle after the U.K. is reported to be looking at adopting packaging laws similar to the measures Australia instituted last year. In London, Imperial Tobacco (ITYBY.PK) and British American Tobacco (BTI -1.5%) started the day off weak, while stateside Reynolds American (RAI -2.1%), Lorillard (LO -0.8%) and Altria (MO -0.1%) are underperforming. | 7 Comments
Oct. 18, 2012, 10:57 AMTobacco stocks slump after the Q3 report from Philip Morris (PM -2.9%) comes in sluggish. Despite higher prices, the industry is having trouble keeping demand up as governments start to enact stricter packaging and marketing rules across the globe. Decliners: British American (BTI -0.7%) -0.7%, Lorillard (LO -0.3%) -0.5%, Reynolds American (RAI -0.6%) -0.7%, Altria (MO -1%) -1.1%. | Comment!
Apr. 25, 2012, 7:47 AM
Feb. 10, 2012, 4:17 PM
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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.
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