Why Lorillard (LO) Stock Is Down Today

NEW YORK (TheStreet) -- Lorillard  (LO) dipped 3.32% to $52.18 at 3 p.m. on Thursday after Reuters reported that the British government wants to ban branded cigarette packaging.

The British government believes this will improve public health and reduce the number of child smokers, according to the report. These rules could become laws by 2015.

The government wants to leave space on the packaging just for health warnings in the form of pictures. This maneuver would make the U.K. just the second country in the world and the first in Europe to mandate plain cigarette packaging; in 2012, Australia enacted law under which cigarettes must be sold in plain olive green packages with images that show their effects, such as lung and mouth cancer. 

The CDC also announced in its Morbidity and Mortality Weekly Report that it received 215 poison center calls in February related to e-cigarettes.

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TheStreet Ratings team rates LORILLARD INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate LORILLARD INC (LO) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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