3 Reasons Why Lorillard Will Continue To Rally
By Sammy Pollack:Shares of cigarette manufacturer Lorilard Inc (LO) are up nearly 20% so far in 2012. While this move is impressive, there are three reasons why LO will continue to rally.
Option Monster reported on the high level of bullish options activity recently; 4,600 June 120 puts were sold against open interest of just 1,200 contracts. The put sale is a bet that LO will not suffer a major decline in the coming weeks. The large block trade of 4,600 June 120 calls likely represents institutional money. Institutional money is usually smarter, thus worth following. In summary, the recent options activity is a vote of confidence in LO.
Market Share Growth
LO continues to grow market share in all of its major brands.
- Total market share rose by 0.4 points to a new all-time high of 14.5%.
- Newport market share of the menthol market segment increased by 0.5% to