The rumor of an impending deal between Reynolds Tobacco and Lorillard Tobacco caused both stocks to get fired up in trading on Monday and continue to move higher on Tuesday. While both companies have experienced declining sales for traditional cigarettes, the market for electronic cigarettes is just beginning to explode. Lorillard owns the leading Blu e-cig brand, while Reynolds’ new product Vuse is quickly capturing market share as it begins national distribution.
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