Imp.Tobacco Grp Share Discussion Threads

[zcaprd7] 09/5/2014 13:17

Still buying thier own shares...

[philo124] 08/5/2014 13:08

Citigroup 2660p up from 2425p; behind the curve, sticking there neck out there waiting until share price got to 2580p before upping TP.

[philo124] 08/5/2014 11:31

Yes, I did see, I did conquer and I did sell... but then you know that.

[zcaprd7] 08/5/2014 11:26

I think threat to be added is a hectoring labour government get in (see SSE)!

[zcaprd7] 08/5/2014 11:24

Yep, increasing (and now quarterly) dividend makes it a nice place to park cash in any case. Not entirely convinced about cash generation and increasing debt though... Seasonal was the excuse?

[philo124] 07/5/2014 20:00

Thanks. If we think on a seven year view these would be say £40; a takeover approach now at say £32 would be a no-brainer to an interested party AND can't see Uncle Vince and the UK Govt giving a toss.

[zcaprd7] 07/5/2014 17:35

From hargreaves:

Financial Highlights:

Operating profit was down 17% to £999 million.
For the half year to 31 March, revenues fell 5% to 12.7 billion.
Tobacco volumes fell to 140 billion sticks from 152 billion last year.
The group's cost optimisation programme was reported as "on track" to deliver incremental savings of £60 million in 2014.
The Board has declared an interim dividend of 38.8 pence per share, up 10% year-on-year.
Imperial Tobacco's net debt position was £11.4 billion, slightly higher than a year ago, and up from £9.5 billion at 30 September 2013 mainly due to seasonal movements in working capital.


Negative Points:

Imperial said its share of business in its growth regions declined because of regulatory changes in Russia, where there are "difficult market conditions."
The company continued to highlight austerity measures, rising unemployment and illicit trade within the EU.
Like rivals, Imperial has suffered from a decline in smokers in mature markets. However, it has looked to offset this by hiking prices and expanding into Emerging Markets.
Australia became the first country to pass plain packs laws, implemented in December (2012). Tobacco companies will have to sell products in identical packs with large health warnings on. Other governments are considering such proposals.
The tobacco industry is exposed to litigation which could have a significant impact on future financial performance.


Positive Points:

The group's cost optimisation programme, which will forecast to save £300 million per annum from September 2018, remains on track and will deliver further incremental savings of £60 million in 2014.
Demand for e-cigarettes has risen. Big tobacco companies are hoping to enjoy market participation. Imperial previously highlighted that "we continue to make good progress with our initiatives in the e-vapour sector through our subsidiary Fontem Ventures and remain on track to launch our own products in 2014."
The dividend policy remains progressive. Management reiterated its intention to grow dividends by at least 10% per year over the medium term.
From the 2015 financial year, the company said it would begin quarterly dividend payments in order to provide more regular cash returns to shareholders.
Imperial has been linked with sporadic talk as a takeover target by larger peers.

[zcaprd7] 07/5/2014 17:28

Too busy selling your SSE!

[philo124] 07/5/2014 15:43

Missed the update this a.m.

[zcaprd7] 30/4/2014 13:47

Would expect a bit of resistance around here... Lagging the FTSE as well were shares of British American Tobacco PLC . They fell 2.1% as the maker of Lucky Strike and other cigarette brands posted a 12% decline in first-quarter sales, hurt by a fall in exchange rates in emerging markets.

[philo124] 30/4/2014 10:44

BATS stopped rise here.

[zcaprd7] 29/4/2014 17:10

And they purchased above £26...

[zcaprd7] 29/4/2014 14:29

Getting there. Quite low volume though?

[philo124] 29/4/2014 11:39

Makes the case for a takeover or buy and hold a lot and wait for 6-7 years.

[danieldruff2] 29/4/2014 09:01

It's just yield support and mathematics I would say. They have increased the divi by about 9% a year over the last six years. If they can do that going forward for another six years, and the yield remains as it is now, share price goes to 4337p. In their statements they talk about the dividend increasing at least 10% a year. If they can do that for 6 years from here, then the share would be on 4580p at same yield.

[philo124] 29/4/2014 08:51

Could be more to it, one would hope.

[miata] 29/4/2014 08:48

Is this just 'rotation'?

[philo124] 29/4/2014 08:43

Another go at £26?

[zcaprd7] 24/4/2014 23:15

They're still buying shares. Approaching 3 year high...

[philo124] 23/4/2014 10:37

Nice, through £25, breaking £26 would be very good.

[philo124] 17/4/2014 16:28

GS 2780P TARGET " Buy"

[fabius1] 17/4/2014 15:15

bouleverse - Why would the management do that? No, much better to use company capital to shrink the equity base (ramp up debt) and declare an increase in EPS in return for some fancy trinkets and some bubbly at the shareholders' meeting. One reason why Warren Buffett & acolytes are a bit sniffy about EPS.

[bouleversee] 17/4/2014 15:02

Must be mad. Why don't they return cash to all existing shareholders and cancel some shares?

[zcaprd7] 17/4/2014 13:02

New 52 week high and approaching the 3 year high. And they are still buying up their own shares...

[zcaprd7] 14/4/2014 14:17

Perky today. Up to £25