British American Tobacco Share Discussion Threads

[casket1] 11/9/2018 14:02

Hargreaves Lansdown has yield at 5.44%.

Held this stock for quite some time, mainly due to dividends.

Not overly happy with the current share price but I don't see this continuing indefinitely. If it's back up at £50 in a years time then what's it matter about short term price fluctuations, although it could fluctuate up once in a while........

[unnavailable] 11/9/2018 13:44

Sharepad showing div yield at 2.7%. Never even bothered to double check that, apologies.I bought at £37. Currently down around 4%ish excluding div.

[this_time_its_different] 11/9/2018 13:00

I see, BATS under £40 looked a good buy, getting in higher than that would have been dangerous. I mean the stock can't keep dropping, where is the floor? What annoys me is you are having big moves (to the downside) without any big news. BATS management need to speak up and raise that dividend to 53p a quarter.

[unastubbs] 11/9/2018 12:55

he possibly means it's 3% on the price he paid (?) implying he bought near the top i suppose...

[this_time_its_different] 11/9/2018 12:53

How is the yield under 3%, it's yielding over 5% now.

[this_time_its_different] 11/9/2018 12:53

No one is able to grow dividends like tobacco, look at GSK dividend growth and compare it to BATS. LGEN is the only one with reasonable dividend growth. GSK is trading like a 5% bond.

[unnavailable] 11/9/2018 12:02

Yield still under 3% not that great. There is also the issue of PM attempting to sue over infringement.I hold but I'm not in the 'this is going to fly' camp. The sector is facing a major headwind with consumer habits changing and there is a real push against tobacco that can't be dismissed. There's a lot resting on GLO.

[unastubbs] 11/9/2018 11:42

andrew baker - where else are you going to get the yield bats is offering?

vod, cna, sse, bt, bp, gsk, imb, lgen, av, rdsb, hsba, rio...plenty to choose from, all blue chips. diversify, man!

[this_time_its_different] 11/9/2018 11:27

This stock will turn hard once the fear dies down, any push over £40 and it's going to fly.

[this_time_its_different] 11/9/2018 11:26

Andrew, just sit tight on the divi, we will have another raise, so your yield on cost will be near 6%.

[this_time_its_different] 11/9/2018 11:24

Essential and Andrew, I agree with you both. There is no way I will let any holding in my portfolio go over 10%, it brings too much firm specific risk to the portfolio.

People invest in BATS for emerging markets, it's a growing business in emerging markets.

[andrewbaker] 11/9/2018 11:20

I really can't buy any more even at this price, 'cos I'm already so heavily loaded up. BATS is being sold for reasons unconnected with its financial situation: with ethical reasons being the main one and fear because of the price drops being the other principal one. Just gonna have to enjoy the high yielding dividends whilst it sorts itself out. I'm not selling because it's financially a good holding and I don't need to. And where else are you going to get the yield that BATS is offering? If this stays this way, maybe, just maybe, I will buy a few more, lol ...

[essentialinvestor] 11/9/2018 11:13

If you go in to a vape shop, what you will observe is the multitude of
different options available, many of those products are no longer
just produced by big tobacco.
It's very easy to research this.

If tighter regulation is applied to new gen, that is helpful
to big tobacco.

[this_time_its_different] 11/9/2018 11:02

BATS STRONG BUY RIGHT NOW, as is most of the market. Even RB is trading at £64, I mean seriously. RB has come down from £80.

[this_time_its_different] 11/9/2018 10:59

BATS RSI is around 10 now, it's beyond oversold.

[this_time_its_different] 11/9/2018 10:55

I'm surprised the Board of Directors hasn't said anything watching their shares drop from £55 to £35. Even with the sterling benefit. What they need to do is give an early trading update and raise next years dividend by 10%. That will shut the market up.

[philanderer] 11/9/2018 10:54

Whatever it is , it's a sh1te day , nineteen red and one unchanged for my lot this morning :-S

[this_time_its_different] 11/9/2018 10:43

BATS will trade on updates from IMB, MO and PM as well. Tobacco companies are highly correlated with each other. I am guessing EM markets being hit is causing this to BATS, and general fear in the market. I stress again, this is an AMAZING BUYING OPPORTUNITY.

[muscletrade] 11/9/2018 10:39

The half year report was only at the end of july and the next trading update is not scheduled until 12th December so pretty much zero chance of an unscheduled update (unless it is of the negative kind), so plenty of time to kick around the share price

[this_time_its_different] 11/9/2018 10:36

Big Tobacco is moving onto vape fast, where I live 3 vape shops have opened on the same street. We have basically ridden out the 2008 version of tobacco. Buy when there is blood on the streets. There is blood on the streets now.

Imagine the poor sod who got in at £55, to lose £20 in capital in 1.5 years is pure destruction. Mr Market is treating BATS like it's going bankrupt. It isn't. Half the world smokes, EM markets smoke like chimneys. Mr Market needs a reality check here.

[this_time_its_different] 11/9/2018 10:30

It's nothing serious, it's all fear. This is what fear does to a stock, people sell because it is going down. They lose all ability to bear risk. The only way to stop the selling is for management to put out a trading update. It's the perfect storm, EM getting hit, US tobacco regulation and Brexit.

Investors are not rational, BATS will raise it's dividend again and you will have a close to 6% yield on this FTSE 100 giant.

STRONG BUY is all I say.

[unastubbs] 11/9/2018 10:15

this time - you have to ask yourself about the unknown knowns - stuff they know about but you don't. they must be pretty serious if the share price is down 30% with currency tailwinds...

[this_time_its_different] 11/9/2018 09:47

I don't understand, how can BATS trade at £52 with cable at 1.4 but trade at £35 with cable at 1.3. Surely it should be trading near £52 again with the drop in cable.