Posts for Ticker ‘CG’

S&P Boots AMBAC (ABK, LO, CG, LTR)

After the close of trading today, Standard & Poor’s announced that it is booting Ambac Financial Group Inc. (NYSE: ABK) out of the S&P 500 Index.  The company’s size has gotten too small to be considered on of America’s top 500 by size (let alone by reputation).  As of today’s close of trading Ambac’s market capitalization was roughly $860 million, which gave it a ranking of the lowest market cap of the S&P 500.

Lorillard Inc. (NYSE: LO) will replace Ambac in the S&P 500 after the close of trading on next Tuesday, June 10.  Lorillard is being distributed to the public via a two-tier process first involving the retirement of the tracking stock Carolina Group (NYSE: CG), in exchange for which approximately 62% of Lorillard’s common stock will be issued; and second an offer in which shares of S&P 500 constituent Loews Corp. (NYSE: LTR) can be exchanged for the remaining shares of Lorillard. 

Jon C. Ogg
June 3, 2008

Posted on: June 3, 2008 – 5:04 pm in Index, , , ,

Loews Sends Lorillard to Carolina As New Stock (LTR, CG)

Loews Corporation (NYSE:LTR) has approved a plan to spin off its entire ownership interest in Lorillard, Inc. to holders of its Carolina Group (NYSE: CG) stock and Loews common stock in a tax free transaction. The deal is expected to close in mid-2008.  Lorillard, presently a wholly owned subsidiary of Loews, would become a separate publicly traded company on the New York Stock Exchange.

The Lorillard shares distributed in the redemption of the Carolina Group stock would constitute approximately 62% of Lorillard’s outstanding common stock.  Loews would effect a redemption of all of the outstanding Carolina Group stock in exchange for shares of common stock of Lorillard, in accordance with the terms of the Carolina Group stock contained in the Restated Certificate of Incorporation of Loews. Holders of Carolina Group stock would receive one share of common stock of Lorillard for each share of Carolina Group stock they own.

Loews would dispose of the remaining 38% of Lorillard’s outstanding common stock in an exchange offer for shares of outstanding Loews common stock if Loews determines that market conditions are acceptable for an exchange. If Loews determines not to effect the exchange offer or the exchange offer is not fully subscribed, the remaining shares of Lorillard would be distributed as a pro rata dividend to the holders of Loews common stock. 

Loews currently has two classes of common stock outstanding:

  • Carolina Group stock, which is intended to reflect the economic performance of a group of assets and liabilities called the Carolina Group, principally consisting of Lorillard and its subsidiaries; and
  • Loews common stock, representing the economic performance of the remaining assets of Loews, including the interest in the Carolina Group not represented by outstanding Carolina Group stock.

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Loews Corp. (LTR) is seeing its shares indicated down almost 6% around $44.00 pre-market, its 52-week trading range is $40.21 to $53.46. 

Jon C. Ogg
December 17, 2007

Posted on: December 17, 2007 – 9:00 am in Mergers and Buy Outs, Shareholder Issues, Tobacco, , ,

How Are Defensive Stocks Doing? (KO, MRK, PG, CAG, BUD, HRL, MO, CG MCD, KFT, GM)

Last Friday, we wrote about defensive stock havens for a crummy stock market.  We also warned that in true market selling extremes there is no such thing as a true haven, and stocks that do "less bad" are still down.  But interestingly enough, some of these names are holding up rather well.  These or related stocks are where investors start to look when things aren’t falling off a cliff.  Here is how the market fared today, followed by the performance of defensive stocks:

DJIA                13,270.68 (-387.18; -2.83%)
S&P500         1,453.09 (-44.40; -2.96%)
NASDAQ        2,556.49 (-56.49; -2.16%)
10YR-Bond   4.79% (-0.07%)

THE ONES THAT WORKED, OR NOT SO BAD ANYWAY

Coca-Cola Co. (NUSE:KO) closed down only 1 penny at $55.85, just under recent highs of $55.88. That’s not too bad.  Does anyone ever stop drinking sodas or water?  Pepsi (NYSE:PEP) isn’t faring as well with a 2% drop to $68.50, but that is still close to its $70.17 recent highs.  McDonalds (NYSE:MCD) fell only 0.7% in regular trading to $49.93, down from recent highs of $53.22.  This is still better than the market as a whole, but this is still up close to 50% from year lows.  ConAgra (NYSE:CAG) fell 1.8% to $25.91, down from recent highs of $28.35.  The food giant is fairly valued, and this was positive some today.  Procter & Gamble (NYSE:PG) spent most of the day up and closed down only 0.3% at $64.97 and still close to recent highs of $66.30.  Not bad.  Afterall, they get into your pocketbook regardless of the market unless you stop shaving, washing hands, and brushing your teeth.

DEFENSIVE STOCKS NOT WORKING

Merck (NYSE:MRK) fell only 1.7% in a crummy day and never really got to be profitable.  Maybe a ‘less bad day’ is a good to some, but barely.  Altria (NYSE:MO) fell 2.7% to $67.67 and Carolina Group (NYSE:CG) also fell 3.5% to $72.33..  Maybe the market tank isn’t making everyone go smoke afterall.  Hormel (NYSE:HRL) fell 2.6% to $31.76 today, but this is now down from recent highs of $39.88.  Maybe SPAM is not that well regarded afterall. Kraft (NYSE:KFT) fell 4% to $31.45, aldo down a lot from the $37.20 recent highs.  Peltz and Buffett aren’t able to offer any stability?  Anheuser Busch (NYSE:BUD) fell almost 5% today to $48.50, down a lot from the 455.19 recent highs.  Booze, particularly cheap beer is supposed to do well.

General Motors (NYSE:GM) was the only one of DJIA components that closed UP…up a whole 3 cents to $34.85, but still.  Go figure.

Jon C. Ogg
August 9, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: August 9, 2007 – 4:39 pm in Defensive Stocks, , , , , , , , , , , , ,