Lorillard, Inc.

  • This Tobacco Company Is a Bit More Ethical than Others

    By Phillip Woolgar - August 19, 2013 | Tickers: MO, BTI, LO

    The business model of tobacco companies is relatively flawless. These companies are selling a highly addictive substance to the general population, and this means that they can raise prices will little effect on sales. 

    A societal trend towards nonacceptance of tobacco has me concerned that many tobacco stocks are overvalued, however. While the business model was perfect in the mid-1900's, the general public is now aware that the product more »

  • Will E-Cigarettes Destroy Big Tobacco?

    By Adrian Campos - August 11, 2013 | Tickers: MO, LO, RAI

    At first I was a non-believer. Cigarettes have been around for more than a hundred years and are an essential part of human culture, for good or bad. Can they disappear all of the sudden? Maybe not immediately. However, E- cigarettes could change the way people smoke and, consequently, the way big tobacco companies have so far obtained their income. Let's review this thread / opportunity from the basics: what more »

  • How to Profit Off of a New Trend

    By Dan Moskowitz - August 9, 2013 | Tickers: MO, LO, RAI

    Tobacco companies are facing more headwinds than ever before, including regulation, taxation, and litigation. The FDA is enforcing regulatory control and cigarette sales volume has declined. Smoking cigarettes also now comes with a social stigma.

    All of these headwinds would lead one to think that this industry should be avoided at all costs. In this case, however, many tobacco companies have been wise enough to realize that when there’s more »

  • The Tobacco Industry Redux?

    By Marshall Hargrave - August 7, 2013 | Tickers: MO, LO, MNST

    With the constant ups and downs of the industry, due to new lawsuits and regulation threats, the energy-beverage industry reminds me a lot of the tobacco industry. The FDA has already forced energy-drink makers to change labeling practices and various health associations are shouting about health concerns. Let's not forget the lawsuits that continue to sprout up across the nation.   

    The latest news to plague the energy drink industry more »

  • Sky-High Dividends for a Faltering Industry: Does Tobacco Still Have Potential?

    By Awais Malik - August 5, 2013 | Tickers: MO, LO, PM

    Cigarettes are addictive by nature and are the leading cause of preventable illness and death in the USA. If an investor’s perspective is not clouded by the moral stigma attached with smoking, he now faces a more pertinent question – with smoking rates declining in the USA, is it risky to bet on cigarette stocks? Tax increases, smoking bans and health concerns have made the cigarette business tougher. At the more »

  • Book Gains in Lorillard Now

    By Rupert Hargreaves - July 30, 2013 | Tickers: MO, LO, RAI

    It has finally happened. The FDA has finally started to seriously raise the issue of a full-on ban on menthol tobacco products. However, before it takes action, the administration has decided to purse more research and public comment on the issue. On July 23, the FDA issued what it called '"an advanced notice of proposed rule making," which typically indicates that the administration is considering regulation. In this case, it more »

  • The FDA Presents Another Great Buying Opportunity

    By Marshall Hargrave - July 30, 2013 | Tickers: MO, LO, RAI

    All the major tobacco companies saw a nice pullback last week as renewed concerns surfaced surrounding the FDA and menthol cigarettes, with my personal favorite, Lorillard (NYSE: LO), down over 5.5%.

    <img alt="" src="http://media.ycharts.com/charts/ecb9321202d3bf987c7acb733a5e3d08.png" />

    Fellow contributor Robert Ciura notes that he would avoid both Reynolds American (NYSE: RAI) and Lorillard due to their exposure to the methanol brands, where Lorillard has the key menthol brand Newport, and Reynolds sells Salem. cigarettes.

    However more »

  • Slow and Steady Wins the Race in This Industry

    By Bob Ciura - July 25, 2013 | Tickers: MO, LO, RAI | Editor's Choice

    The tobacco industry is not a haven for growth investors, nor should it be. Consumers continue the trend toward healthier living, and the decline of smokers has put a lid on growth. That’s largely behind the sell-off in Altria Group (NYSE: MO) after releasing second quarter earnings.

    The market was clearly disappointed by the company’s 5% growth in adjusted diluted earnings per share, but this serves as yet more »

  • Tobacco Can Mean Big Returns, But Wait for a Better Entry

    By Matthew Frankel - July 22, 2013 | Tickers: MO, LO, PM, RAI

    The tobacco companies have always been excellent dividend payers, but after a rapid gain like the one just experienced in the market, it becomes more important to figure out whether or not your favorite dividend stocks are worth getting into. My “big three” of tobacco stocks, Altria Group (NYSE: MO), Lorillard (NYSE: LO), and Reynolds American (NYSE: RAI), for instance, have popped by around 8% in the past month alone more »

  • Is Philip Morris' Only Problem the Strong US Dollar?

    By Rupert Hargreaves - July 22, 2013 | Tickers: MO, LO, PM

    Philip Morris International's (NYSE: PM) second-quarter results were a mixed bag. The EPS came in below estimates but this was almost expected considering the company's exposure to currency fluctuations. Indeed, with almost all of Philip Morris' revenue coming from outside of the US but the company reporting in dollars, dollar strength was bound to hit earnings. Still, after excluding the currency effects, earnings per share were up $0 more »

  • Should You Invest in International or Domestic Tobacco Stocks?

    By Leo Sun - July 19, 2013 | Tickers: MO, LO, PM

    Philip Morris International (NYSE: PM), the second largest tobacco company in the world, recently stumbled after reporting second quarter earnings that came in below analyst estimates. The international maker of Marlboro cigarettes, which is often vilified for its heavy-handed presence in developing nations, blamed lower global demand and unfavorable exchange rates for the slowdown in its top and bottom-line growth.

    Second quarter earnings were a drag

    For the second quarter more »

  • Two Tobacco Companies Worth Owning

    By Lior Cohen - July 12, 2013 | Tickers: MO, LO, RAI

    The decline in number of smokers in the U.S hasn’t stopped leading tobacco companies to maintain their high profit margins. Furthermore, some companies such as Lorillard (NYSE: LO) were able to show growth in revenues as e-cigarette market continues to rise. Let’s take a closer look at two tobacco companies Lorillard and Reynolds American (NYSE: RAI) worth owning.

    Year to date, shares of several leading tobacco companies more »

  • Which Tobacco Company Offers the Best Returns?

    By Rupert Hargreaves - July 11, 2013 | Tickers: MO, LO, PM, RAI

    Tobacco companies are well known for their free cash flows, which allow them to return large amounts of cash to investors through stock repurchase programs and dividends. However, with each company providing equally impressive returns, which offers investors the most by way of cash returns?

    Altria (NYSE: MO) does not offer much in the way of stock repurchases but the company offers a dividend yield of around 5%. On the more »

  • Tobacco Stocks with Upside and Yield

    By Damon Churchwell - July 9, 2013 | Tickers: MO, BTI, LO, RAI

    Tobacco stocks are typically high dividend payers and report consistent earnings trends. Currently, with investors shifting to more aggressive stances and bidding up shares of growth companies, high-yielding equities have been left behind. In fact, the majority of dividend stocks appear to be trading below their 50-day moving averages, lagging the moderate increase in the S&P 500 average over the second quarter.

    Here are four of my favorites, starting more »

  • 3 Companies You Won't Want to Miss

    By Shweta Dubey - July 4, 2013 | Tickers: MO, LO, RAI

    According to Wells Fargo, the e-cigarette market in the U.S. will be $1 billion this year, and it will increase to $10 billion by 2017. This trend will be beneficial for the cigarette manufacturing companies, as these companies are facing headwinds from high tax rates, increasingly strict government rules and declining sales of traditional cigarettes. Tobacco companies are diverting their focus to e-cigarettes and increasing their marketing budgets for more »

  • Be a Seller of Volatility

    By Timothy Green - July 1, 2013 | Tickers: XOM, LO, CLX

    Most people stay away from options, and for good reason. But selling options can be a lucrative and conservative strategy, especially when the volatility of the stock market is high. Goldman Sachs recently published a list of 25 stocks with unusually high volatility which could make good candidates for selling put options. By selling a put option you obligate yourself to buy shares of the underlying stock at the strike more »

  • Why You Should Include These Tobacco Companies in Your Portfolio

    By Victor Selva - July 1, 2013 | Tickers: MO, LO, RAI

    Although many believe that tobacco is a declining industry, there is still potential in emerging countries. Despite having some room left for growth, I am particularly interested in the substantial dividend yields that some tobacco companies like Altria (NYSE: MO), Lorillard (NYSE: LO), and Reynolds American (NYSE: RAI) offer. Let’s take a closer look at them in order to understand if they stand as good investment opportunities for the more »

  • Dividend Health in These Major Tobacco Stocks

    By Anthony Parsons - June 26, 2013 | Tickers: MO, LO, RAI

    This article will take a look at three high-dividend-paying tobacco stocks that are some of the biggest tobacco companies in the world. It will look at how safe I believe their dividends to be. Additionally, I will make a case that these companies can not only safely maintain their dividends, but that they also are poised to continue raising them.

    The three companies we will focus on today include Reynolds more »

  • Continue Buying the Smoking-Hot Cigarette Stocks

    By Mark Holder - June 26, 2013 | Tickers: MO, LO, RAI

    The cigarette stocks remain hot as high yields and steady growth have led to strong stock gains. Many an investor has overlooked the sector due to perceived negatives of the industry, but for an investor looking for yields and growth the sector should not be ignored.

    Right now the leading domestic cigarette stocks of Altria (NYSE: MO), Lorillard (NYSE: LO), and Reynolds America (NYSE: RAI) all maintain dividend yields of more »

  • Why This Stock Will Smoke the Competition

    By Marshall Hargrave - June 26, 2013 | Tickers: MO, LO, RAI

    What does it take to separate yourself in the tobacco industry? All the companies are inherently tied to tobacco consumption, tobacco taxes and tobacco regulation. The U.S. is dominated by three manufacturers, including Altria (NYSE: MO), which sells roughly half of the nearly 500 billion cigarettes sold in the U.S., Reynolds American (NYSE: RAI) and the Loews subsidiary Lorillard Tobacco (NYSE: LO).

    All three major U.S. tobacco more »

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