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Lorillard Inc. (LO)

COMMENT

The new wave is getting into that safer electronic cigarette area and a lot of tobacco companies are trying to move into that space. Likes this for its nice dividend of 4.6%. You are paying a 1.3 estimated peg ratio. Not a really cheap stock but not extremely expensive for a consistent low beta type of stock.

DON'T BUY

Won’t buy into this sector at all. 43 different brands. A company that kills its customers. Makes a lot of money and has a high debt load so he would not like it if it was in a field he liked. They are very diversified. Headline risk.

BUY

Tobacco companies are the best to be in. Their profit margins are high and customers are addicted to them. A buy and hold type of thing. Enormously profitable and dividends go up regularly. Today's weakness could be an analyst downgrading it.

BUY
Tobacco. This is his favourite. The premier operator and there is better metrics in their product. Expect they will buy back shares. Some overhang in the sector as FDA starts to regulate, so there is some risk.
TOP PICK
A $10 billion market cap with a 6% dividend. The kind of company he likes. P/E of 10.93. Debt/EBITDA is 0. (Amanda thinks it's a declining business.)
COMMENT
LO-N Tobacco. Wonderful yield of about 6.8%. Trading up around 14X Book Value, which as a value investor, he is not comfortable with.
COMMENT
Cigarettes. High margins. Make a lot of money, especially during this environment. Doesn't have a problem with this one.
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Lorillard Inc. (LO) Frequently Asked Questions

What is Lorillard Inc. stock symbol?

Lorillard Inc. is a OTC stock, trading under the symbol LO (previously LO-N on Stockchase) on the undefined (undefined). It is usually referred to as or LO

Is Lorillard Inc. a buy or a sell?

In the last year, no analyst issued a Buy, Sell, or Hold rating on LO (previously LO-N on Stockchase) on Stockchase. Read the latest expert commentary for Lorillard Inc..

Is Lorillard Inc. a good investment or a top pick?

Lorillard Inc. was recommended as a Top Pick by David Driscoll on 2008-12-12. Read the latest stock experts ratings for Lorillard Inc..

Why is Lorillard Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for Lorillard Inc..

Is Lorillard Inc. worth watching?

Lorillard Inc. is covered by Stockchase experts and is worth watching.