Time to buy? A lot of cash sloshing around As per title, I am thinking this might be a tentative buy, however we cannot foresee global events, eg US/China/Iran, Brexit, Frexit, and other “Exits” that might pop up soon.
BATtered Have both. BATS is indeed a relative bargain.
BATtered Piled into Imperial a month ago…decent yield. Less exposed to Menthol apparently. BAT must be fair bargain now???
BATerred Not great - big drop 10% in a day – seems like a sea change on the Menthol side.
Share price decline smokes out changing of the guard at BAT Sky News Share price decline smokes out changing of the guard at BAT The giant cigarette manufacturer is preparing to announce that Nicandro Durante is to make way for a new CEO, Sky News learns. If you look at the SP graph over the last year, it’s probably best he departs. Let’s hope no kitchen-sinking goes on when the new CEO takes over!
Half year report Looks pretty solid to me and the currency whilst adverse this time around should be neutral or even +ve at the full year - glad I increased the holding now :- [link] Games
Re: Price Drop - question Folks,I have no concrete info on this issue, but my gut feel is that big tobacco is sitting waiting on the sidelines to see which of the "next gen" vape suppliers gets a critical mass and then buy them! Watch them all beat themselves to pieces and then step in with their undoubted financial muscle and buy up the winners, rebrand them to the vape equivalent to Marlboro, Camel, Dunhill, and, for the oldies, Number 10, Kensitas, Park Lane and the much loved and sorely missed Embassy ( or was it Woodbine), can't quite remember.I know I would in their position .They have their own vape brands but frankly no idea what they are , but if you were in their position what would you do?I don't believe any of the newcomers (tiddlers) have the financial clout to become Majors in their own right and are probably trying desparetley to boost their position/ market share so they can be bought out for max £££s. They get the privilege of spending their hard earned Crowdfunded money on Marketing and Promotion.Does anyone think any are going to become the next BATS or Imperial Brands?Huge consolidation in this space IMHO.BATS and other Majors have the money and I hope the nous to make next gen their own.Manage a slow decline in their business and return max cash to shareholders.GLACheersChozza
Re: Price Drop - question Will big tobacco companies be able to dominate new generationproduct as they have with sticks?, That is the question I would ask.Just try this bit of research(ltakes seconds) ... Type buy vape kits, or vape liquidsin to Amazon, you might be surprised how many different companies are in this market. You don't need to be a big tobacco company to supplyor manufacture.This gets very little attention for some reason, but given high sector debt levels,it a question well worth asking.That is another area, the very significant gearing up of sector balance sheetsover the last few years.I'm taking the Summer largely off, so best of luck to everyone.Just thought I would add the above, as do not see it discussed anywhere.
NEW ARTICLE: Stockwatch: A 7% yield plus double-digit dividend growth "At 2,780p, has @GB:UKX:FTSE 100 tobacco stock LSE:IMB:Imperial BrandsÂ bottomed out after a 43% slide in the last two years, making its bumper yield a bargain? Do advances in e-cigarettes/vaping offer growth to help offset the sense of tobacco as ..."[link]
Re: Price Drop Hasn't looked this cheap for a long time now.P/E down at 12.9 --- it was up at 30 in 2014-15Projected (finger in the air) 12 for 2019 and expected 8% growth - PEG 1.4 (not a scientific measure but heading in the right direction - i.e. it's getting cheaper.)One has to wonder about the press, the financial press in particular, that drives the sentiment on tobacco one way and then the other in a cyclical fashion - right now it's all negative.The yield is 5.3% and reasonably well covered -- projected yield for next year is 5.7%.I'm having some more of this.Games
Re: Price Drop Agree with you. Also if BAT's projections for derivative products is right then the volume decline is more than covered. An opportunity here omho.
Price Drop Well at least the drop dropped by 50% at the close to just 2.7%. Stop Press: iii now saying 2%.Smoking may well be in terminal decline but it will take years if not decades for all smokers to give up or die. Also assuming no new users take up the habit. Can't see Govts banning it as they make far too much money out of taxing the evil weed.BATS has increased revenue by well over 30% in the last 5 years and operating profit by 20%.I think there is plenty of life in the old girl yet.Cheers,Chozza
Re: Added back SP dn 6% at 3615 - OUCH !!! Philip Morris are down 15% in US. Global smoking rates declining. This is a dying business - literally.
Re: Added back Certainly a bit of a see saw at the moment
Re: Added back 4th lotGames