Lorillard, Inc. (NYSE:LO)
Lorillard, Inc. engages in the manufacture and sale of cigarettes in the United States. The company has 44 different product offerings under the Newport, Kent, True, and Maverick brands, among others.
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I think cigarettes are doomed in the long run. But this company will probably return a lot to shareholders before the long run gets here.
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Smokes thrive on bad economic times
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Recession-proof product, highly profitable, serves fastest growing niche in its industry
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despite selling products that kills its customers the tabacco industry is a booming business and usually recession proof its still growing and shares its wealth with dividends
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Newport cigarettes.
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This cash cow, with #2 smokes brand in USA has just spun off from Lowes Corp (formerly tracking stock ticker CG). Tisch family has milked enough cash and does not like the prospect of potential FDA regulation of the inductry. This company cannot stand alone though in a world of tobacco giants. Reynold American, JTI, Imperial Plc, or even Phillip Morris Intl, just spun off from PM USA, will snatch up this small profitable company. If not, share buy backs and a loyal customer base will keep you smiling.
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