British American Tobacco Share Discussion Threads

[this_time_its_different] 13/9/2018 07:50

It will rally further, but no more tobacco stocks for me. They are too susceptible to regulation, though it looks like big tobacco has got people on the inside in the FDA, so tobacco should be fine till trump is around.

I'd rather stick to high growth stocks in the tech and fintech space (apple, square, just eat etc) and balance it out with defensives like costco etc.

[unnavailable] 12/9/2018 21:07

Dammit. I missed all the commotion while at work. Had intended to buy if it fell under £35 and I see it did briefly. Anyone topup on this news?

[philanderer] 12/9/2018 17:27

Go out for a couple of hours and ... Blimey !!

[muscletrade] 12/9/2018 16:12

Tobacco stocks rally as FDA considers banning all flavored e-cigarettes

By Emma Court
Published: Sept 12, 2018 10:47 a.m. ET

1
Tobacco company shares rose in active Wednesday morning trade after the Food and Drug Administration chief said that the agency might ban all flavored e-cigarettes due to their popularity among teenagers, which he said had reached "an epidemic proportion." British American Tobacco BATS, +6.15% shares rose 6.3% in extremely heavy Wednesday trade, Altria Group Inc. MO, +6.83% shares rose 7% in extremely active trade and Philip Morris International Inc. PM, +3.77% stock rose nearly 5% in heavy trade. FDA Commissioner Scott Gottlieb said earlier this year that though many smokers may use e-cigarettes to smooth the quitting process, he was concerned about young people using the products, particularly the popular brand Juul, which sells such flavors as "crème brulée" and "cool cucumber." Though one Juul pod is roughly equal to a pack of cigarettes when it comes to nicotine strength, only a minority of young people who were familiar with or had recently used the Juul knew that it contained the addictive stimulant, according to one peer-reviewed study. The regulator said on Wednesday that it has asked Juul and others to respond with sufficient plans to reduce teen use, warning them that they chance a ban. The FDA had previously requested information about marketing practices and youth use from Juul's manufacturer and makers of similar products in early June. British American Tobacco shares have dropped 24.6% year-to-date, Altria shares dropped 10.8% and Philip Morris shares dropped 23.5%, compared with a 7.9% year-to-date rise in the S&P 500 SPX, -0.17% and a 5.2% rise in the Dow Jones Industrial Average DJIA, +0.04%

[ali47fish] 12/9/2018 16:07

sorry what 's the neews i am missing- what has this gor to do with fda and what juuls? help

[essentialinvestor] 12/9/2018 15:18

M, very valid point

[this_time_its_different] 12/9/2018 15:12

SUPER STRONG BUY NOW,

Depressed stock price + FDA removing the competition

[minerve] 12/9/2018 15:02

It gives you some idea how the market rates vapes as a disruptor.

[this_time_its_different] 12/9/2018 15:00

BATS is on fire, it's gapping up.

[essentialinvestor] 12/9/2018 14:58

That's big news, juul have dominated the vape market in the US

[minerve] 12/9/2018 14:57

Old style tobacco lobbying still very much healthy and alive it seems.... ;)

[this_time_its_different] 12/9/2018 14:55

Damn FDA to the rescue,juul can stick it where the sun don't shine

[this_time_its_different] 12/9/2018 14:53

Damn FDA to the rescue,juul can stick it where the sun don't shine

[minerve] 12/9/2018 14:46

Well, so far I am lucky today! Bought a tranche whilst 1% down, come back from a late lunch and......

[mjc70] 12/9/2018 14:43

FDA puts e-cig makers on notice: Fix 'epidemic' teen use or products may be pulled from market
In an unprecedented move, the Food and Drug Administration has ordered five brands — Juul, Vuse, MarkTen, blu e-cigs, and Logic — to submit plans to address teen use of their products within 60 days.
Across the entire e-cigarette category, the FDA is considering restricting manufacturers from selling flavored nicotine liquid or making the products undergo an agency review.
E-cigarettes, particularly Juul, have become a phenomenon among high school and middle school students.

[this_time_its_different] 12/9/2018 14:41

BATS just exploded up, anyone know why?

[this_time_its_different] 12/9/2018 13:38

Every business has competition though, no one has a monopoly on the market. BATS still competes with Imperial for customers. US won't raise as fast, trump is a low interest guy, they are not going to let the bull die yet.

[this_time_its_different] 12/9/2018 13:37

Smoking is a steady business. The people who are on a pack a day in their mid 40s/50s are going to smoke for another 20-30 years at least, that is solid revenue right there.

[action] 12/9/2018 12:52

EI

You have hit the bulls eye. US Interest rates are on the up and debt burden of 40 bln will have significant dent to bottom line.

On the flip side takeover synergy savings may counter balance some of the impact.

[this_time_its_different] 12/9/2018 12:41

Yeah it was stupid for BATS to buy the remainder of reynolds, when people are moving onto vape. Lessons learnt. Will take them a few years to pay down the debt. BATS is still a buy at this price, even just for the divi.

[essentialinvestor] 12/9/2018 12:23

Action, you may not be too far away on that.
IMB worth a look if it gets near £23, may not happen-
And only interested if trading remains inline.


If you go back about 5 years, BATS had about £13 billion net debt
and consistently bought back significant amounts of their shares.

Following an acquisition spree, net debt has ballooned to well over £40 billion,
the share buy backs have stopped, and there is a growing threat from non tobacco
companies grabbing share in the Vape market.

[this_time_its_different] 12/9/2018 12:17

I don't see it going that low, it's a good time to add. Big tobacco will build on vape and cannabis. They are smart enough to lower their exposure to sticks. With an addictive drug and pricing power, the future is not so bleak.