|British American Tobacco
||EPS - Basic
||Market Cap (m)
British American Tobacco Share Discussion Threads
Showing 2151 to 2174 of 2175 messages
|MO looks a little pricy to me atm, may be incorrect.
PM look to be plunging huge amounts in to New Generation products.
They are hoping for IQOS approval in the US next year or two,
already submitted a very large amount of research work to the FDA.
The product is selling very well in Japan if reports are accurate.|
|Consolidation in the tobacco industry is a slam dunk: it has to happen. And whilst it is, there will be plenty of gain and income from the major players; plus the bonus of earnings from alternative smoking devices that allows nicotine addicts their daily fix.
Defining a must have business: a legal product, an addictive product, a product whose sales are resistant to price increases and inflation (when there is any), high profit margin (ex-taxes, lol) and guaranteed repeat sales. HHmmm... ah: B̶i̶s̶;t̶o̶ I mean Tobacco. :)|
|Added to my pension fund yesterday. Now considering when to get out of Reynolds and perhaps purchase Altria; good dividend yield (4 times per year) with good market/brand strength and now a very likely target for Philip Morris International. This is a mature market but when you look at how many brands are out there there is plenty of opportunity for 'brand migration'. As an example the Chinese market has over 900 brands - that's a lot of brands!|
|Mentioned sentiment could turn quickly in the above post,
and it has.
From under £45 yesterday on the morning low.|
|Some talk Reynolds will want a 30% premium to the pre bid price,
not sure I see the BATS share price allowing that, but early days and sentiment
can alter quickly.|
|These credit downgrade warnings are unfounded IMO. The additional free cash-flow generated makes debt payment much easier even with the cost of added debt. It seems to me that anything over 2.5x EBITDA causes these young analysts to follow the crowd; perhaps some of their clients are looking to purchase the debt.|
|Anyone who sold out on the Friday early bounce must have a grin
that goes from ear to ear atm!.|
|Fitch have placed BATS on negative watch.
Would think most see clear commercial logic, lets see how the share price reacts, should be much clearer by the end of next week.
BATS below £45 it's a no go imv, above £48 makes an agreed deal more likely,
would expect any second offer to be just a marginal increase, all imv only.|
|Despite some waspish press comment, I cannot see that this acquisition is anything other than positive for BAT's shareholders. A big chunk of the acquisition is for cash, the price does not look outrageous, the acquired company is mainly dollar earning, it is eps contributing from Day 1 and the target company is well known to BAT making acquisition risk minimal. It all works for me!|
|Looking at the sustained share price increase in RAI
the market appears to agree with your assessment Minerve.
BATS stated they will not go hostile, so an agreed bid on a second higher offer
How the BATS share price now trades is a large factor, interesting few weeks ahead.|
|Crumbs 26%!, Not lacking conviction with that level.|
|Well done on the addition. I think it is money wisely placed. My exposure is approx 26% (excluding cash) - after today.|
Added a few, I have 11.5% exposure to Tobacco.
Really wish BATS adopted a quarterly payout on the divi.|
|Hope you're enjoying your hols by-the-way! :)|
|When the offer came in the 20% premium, factored in, was OK. That is why the share price rose initially. It has just fallen back because the offer hasn't been fully rejected and uncertainty has just cooled things. I expect the deal to go through, it has attractions on both sides of the pond. The share price will bounce back, probably as early as Monday/Tuesday. This could become the income king of the FTSE 100. IMO|
|Very early days but in this case the market effectively decides.
The value of the BATS offer has already been reduced with the share price dip.|
|For me, if I am thinking right, it will be an automatic 15% gain on income anyway, in a sense, because I will no longer be hit with US withholding tax.|
|The deal seems to be ideal for both sides. Yes, the game has to be played. Target company has to be seen playing hardball to appease shareholders and advisor banks always have to have their input and be seen to be 'working' for their money - if they know what that word means.
I am optimistic that the deal will go through. I have both shares at greater weightings than Woodford. BATS is an institution's staple darling and I can only see a larger entity being even more attractive to them. As long as the debt is secured at reasonable rates cash-flow improvements will prove the deal was right. FT are reporting increased cash-flow per share (in the new entity) of around 20%.
I have bought more BAT - too early this morning (too much caffeine) and am sat on losses with new tranche. Could kick myself. However, very confident about the future. My Reynolds American holding can wait and see what happens.
Amongst all the excitement their trading statement seemed quite positive and besides all the noise seemed on its own a good reason to add.|
|Was a little bemused by the initial share price reaction, they were always going
to reject the offer as inadequate and then the market begin to fret about
BATS overpaying on a subsequent higher offer.|
|Guess they were told to f.o. .|
|Update from AlphaValue:
|I am a Reynolds and BAT investor. This has caught me by surprise. Reynolds has just announced - what I thought - were good results but they missed analyst expectations. I bought more on the dip over the last few days. I have one post on my Reynolds thread and haven't bothered to post anything else until I had visitors - it has been a very lonely place. LOL|
|20% premium seems a bit rich but market likes the deal judging by share price RAJ pe at 18 (22 adjusted for premium) is less than BATs at 26 so may work for BATS shareholders|
|Sliding today :-(|