Imp.Tobacco Grp Share Discussion Threads

[philo124] 17/11/2015 12:40

Nice reversal.

[zorija] 16/11/2015 20:25

Seems possible :-



ZZZ

[dogwalker] 03/11/2015 07:55

Volumes of results are up - about 53 pages.

[philo124] 03/11/2015 07:22

Good results, I think.

[irenekent] 30/10/2015 08:08

Looks like my old target price has gone. New target £40.
DYOR

[deanforester] 18/10/2015 18:01

Yes, the IRR has been 22.6% p.a.

[dogwalker] 16/10/2015 21:10

22.6%/annum? DeanForester?

[deanforester] 16/10/2015 18:02

I got them when Hanson demerged in 1996, share price then was 375p. Added more over the next 2 years around the 400p level, and sold the rights in 2002. Trimmed the holding back 4 times before the next rights issue in 2008, which I also sold. Since then I've added a few more at 2200-2300p, and my total return has been 22.6%. Most of the dividends have been reinvested elsewhere.

A very reliable source of income.

[lovegod] 16/10/2015 16:40

My Dad had these shares...he passed in 2011....Mum has them now..I cannot remember the £14.00 right issue...but I do remember £5.00 share one..years ago..which Dad did take up...every time the Divi comes..I say to Mum...Dad still lookin after us....

[minerve] 16/10/2015 11:03

Find the right share and don't sell - if you can resist! Just take the yield. I too have three tobacco stocks and take the same view - although I haven't been investing in them as long. If you look at Reynolds Inc, yields just under 4% but will move above soon if projections are met. IT has yet to reach the median analyst price prediction and could provide amplified return, perhaps, on $ strength later.

IMT moving to 4 divs a year which improves compounding rate IF coupon stays the same as if it was paid twice. BAT always a good income stock but seems to be shunned by income stock managers apart from Woodford.

[wirralowl] 16/10/2015 09:19

Interesting post, irene, really highlights the merits of a buy and hold for the LT strategy.

[irenekent] 16/10/2015 09:09

I've been in these since they came on the market with the break up of Hanson. A few years ago there was a rights issue at about £14 which I took up. I have always reinvested most of my divs through their scrip dividend scheme. I think these shares, as long as they perform as they have for the last few years and continue to have a market for their products (which may change as new products come along i.e. e-cigarettes, snuff etc.), will continue to prove the benefit of compound growth. My yield on cost is now 21% and rising. I anticipate that if the dividend continues to rise as it has over the last 5 yrs and if I continue to reinvest these divs my YOC will have risen to 44%. Here's hoping that the world will still be round!

[mayzerg] 02/10/2015 08:38

My largest holding, followed by Omega Healthcare Investors and Royal Dutch Shell.

More than happy with the 4.7% YOC that I have at the moment(I added a few months ago when my YOC was higher at 5.5%).

Expecting my YOC to grow to 12% in 10 years, beating the SP500 without even trying.

[philo124] 27/9/2015 20:25

Ah, thx. Great rumour!

[doodlebug4] 27/9/2015 16:48

SUNDAY TIMES

Imperial Tobacco was once described by a respected City analyst as the 'cheapest consumer goods stock anywhere in the world by some margin,' says Peter Evans in Inside the City. The shares may no longer be that cheap, says Evans, but they still hold good value. This is especially amid speculation that it could be carved up if it represents a good return for investors. 

The Bristol-based maker of Davidoff and Gauloises surged to a record last week on speculation it could be broken up. 

Imperial also continues to churn out returns despite years of declining cigarette sales. 

Buy.  

Daily Mail ( Sunday share tips )

[philo124] 25/9/2015 20:37

Despite very got top up at sub £31, no. Holding is in sipp, started buying c£22/24. Conversely, in a different market probably yes but currently I am much more concerned with dealing with my other non sipp/isa holdings.

[speedsgh] 25/9/2015 16:29

PHIL - r u tempted to take profits at this level?

[philo124] 25/9/2015 15:12

Very nice move herecand with BATS.

[philo124] 19/8/2015 15:52

Topped up today.

[spacecake] 19/8/2015 13:51

IC today
Imperial Tobacco (IMT) posted a 14 per cent rise in underlying net revenue from growth brands for the nine months to end-June as the cigarette titan grew underlying volumes by a tenth. However, total underlying revenue was flat and volumes fell 6 per cent. NHS agency Public Health England also released a report labelling e-cigarettes as 95 per cent less harmless than tobacco, which could pave the way for NHS prescriptions. We retain our income buy recommendation.

[wirralowl] 19/8/2015 11:34

HL COMMENT (19 AUGUST 2015)

Our view

The acquisition of US assets from Reynolds and Lorillard changes the geographic profile of Imperial Tobacco. Imperial's share of the US tobacco market rises from 3% to 10%, and the proportion of net revenues generated from the US rises from 7% to almost a quarter of the group total.

The deal is attractive for Imperial on a number of fronts. Cigarette volumes have been falling by around 3-4% a year in the US, but it is still the world's second largest tobacco market by volume. The regulatory environment for tobacco is also more stable than in many other nations - the last federal excise tax increase was in 2009. Currently cigarette prices in the US are amongst the most affordable in the world. In the UK a person on average wages would have to work for an hour to be able to afford 20 cigarettes. In the US, that figure drops to just 21 minutes. Because prices start from a much lower base, the group has much more scope to raise prices to offset falling tobacco volumes.

The US deal, combined with the group's on-going cost and efficiency drive, should help to support cash flows and the dividend. The shares currently yield around 4.3% (variable and not guaranteed), but, on the current dividend policy the yield could rise to 5.3% by 2017. Following a strong run over the last year the shares now trade on a price to earnings ratio (P/E) of around 14.2x, which is above its long run average but a modest discount to the market as a whole.

[irenekent] 19/8/2015 09:55

Looks good in a falling market. Rising dividends and now a 10% share of the US market.

[wirralowl] 19/8/2015 09:08

At first glance results look ok to me, with good cash conversion and confirmation that the dividend is on line for a 10% increase this year.