monty: whilst I cannot disagree with your view on pound weakness the same logic does not appear to be benefitting DGE (Diageo) where the share price is down again today. |
Interesting, thanks for that, every day is a day for learning. |
The lower the pound goes the better for BATs profits. |
dave: I appreciate your view and will also avoid covering old ground.
To be fair, decimation in the modern sense means 'a lot'. I read some historical stuff and learned that in a Roman soldier unit - typically a 'century' that usually had about 80 (rather than 100) soldiers if there was a very serious punishment required, such as metered out for a unit desertion, one in every 10 soldiers would be randomly selected and the others would beat them to death with clubs. DECI (10) mation.
Starts me thinking this concept could be rolled-out in many spheres :-)
Sorry all, I'm a bit bored today. |
Everyone has their own views, I just don't have the same view as you and a fair few on here too.Not going to go over old ground, pointless. All I'll say is it's given in one hand and taken straight back with the other.As for capital decimation, not certain it imply's -10%, but if it does then I've learnt something.Yield here is what 8%, capital over one year (yes I could say 2,3,4,5.....but did cover the net loss over 10 years previously) down 27%. Go figure!.I await the usual down ticks (yawn) and guess you will be black balled too, my apologies for that!.Have a good day |
dave: Think of BATS as being a big annuity fund. You put your money in (£5k for me so far) and out pops about £420 a year - split over four payments.
If, after actually receiving that income each year if I so decide, I can cash in whatever is left of the BATS share value. If there's nowt left then it really IS like an annuity. However, for that to be the case this company would need to go bankrupt. Oh, and ITC in India where BATS own 29%.
And by the way, capital decimation would imply one tenth of the capital is destroyed. So even in your explanation I'd be left with 90%
Coincidentally, my holding in BATS is down 10.05% from my entry point on 19th Sept 2023 at £27.219 per share. The 10 year chart show me this is the low point in those 10 years. I am sorely tempted to add another £5k here. |
Wash your mouth out! lolYou can't post such things on this thread, you can only post how brilliant divs are despite capital decimation eliminating any actual perceived free income :) |
Interesting summary of BATS
”BAT and brookfield Infrastructure – 7% yielding Buffet Style bargains” |
so why oh why are our BATS shares subdued and struggling to attract investors with a healthy dividend yield??? |
Totally agree, 57.72p like I said in the bag next week, then only 13 weeks for the next dividend, 230.9p a year compounded soon adds up, ok shares go down as well as up as long as your not selling, it's good, 230.9p a year and growing. |
Yeah, that 6.2% bond was sufficiently attractive - but it is not like you could buy a big amount - and even then, you are essentially having the government steal half back upon maturity in your next tax bill anyway!
But at least it is a different asset class to offer a bit of diversity outside of stock market equities.
Santa rally or not, this outfit is one that I am fairly comfortable holding for the long term. Or my TP, whichever comes first :) GLA. |
When the 10 year treasury went over 5%, investors thought why take a risk in the market. Even NS&l had 6.2% gov now pulled it. The whole market came off. The good, bad and ugly all been hit.
Will we have a Santa rally, not looking like it. But one good thing another 57.72p in the tax free ISA bag, next week. |
No, surely not, the oracle doesn't think so and also predicts £26 by next Wednesday....cloud cuckoo land. |
The annual dividend has been wiped out! |
It is highly unlikely to be the bottom......because I never seem to catch the low point :)
I feel equally confident in saying that 55 quid a share will not be seen here again, but I do not personally think that 30 quid a pop is an ambitious target either.
I certainly hope not anyway, given that is my aim! As to when, if it comes to pass? No idea, but with that yield, it is easier to be somewhat more patient than with stocks lacking a dividend, IMO.
But never any certainties of course. While I hold more of these than you currently do, it is still only a fairly small part of my overall p/f at the time of print. So certainly not advocating going all in etc. GLA. |
I have a modest holding in BATS of £5,000 gaining me 182 shares on my first purchase (for BATS) on 19 Sept '23.
Looking at a 10 year share graph I see the share price was over £55 on 1st May 2017.
Interestingly, the most recent high point was 20 Sept '23 just one day after I bought.
I am tempted to invest a further £5k at these low prices (£24.31 as I write this) if only to reduce my average price. But, IS THIS THE LOW POINT?
The 29% of ITC Limited (NSE:ITC) that BATS own is worth 29% of £54bn - about £15.6bn (this is based upon the ITC cap. of 5.44 trillion Indian Rupees and each Rupee is worth about 1p )
I see little wrong with investing more - it's just a timing issue. |
2420p another low of the year reached. |
I added a few more this morning. Average dividend closer to 9% than 8% now for me here, even though I would not be entirely surprised if we saw 10% dividend share price level.
Willing to take a final tranche if the price gets (even more) silly in the months ahead. GLA. |
Very helpful post, MCunliffe1. Thank you. |
 I bought BATS in mid September. Earlier this evening I found this (below) on the IG website:
".....The shares have been hit for six this year due to BATs being fined $635 million for selling $30 million of cigarettes to the Singaporean Embassy in North Korea – breaking US sanctions – and processing $250 million from sanctioned North Korean banks through US institutions. The shocking scandal ended in the exit of previous chief executive Jack Bowles from the company and former finance director Tadeu Marroco taking over the reins as CEO. As such, the shares are down 24% this year and are likely to take some time to recover from the debacle. ....."
This may be old news to you all as it could have happened earlier this year.
The IG report continues as follows:
"..... However, its financial results continue to be strong, with half-year revenues up 4.4% to £13.4 billion (2.6% at constant currency rates), while sales from its new vaping products rose 27%. These next generation products now account for 17% of BATs’ group revenues. Cash conversion rates remain in excess of 90%. Profitability from its vaping products is now expected a year earlier, in 2024.
While the share price slide is disappointing for investors, the dip offers a decent entry point for new investors. |
Same here. |
couldn't help but to bag a massive amount today ,,, surely bottom end now so come on BATS do me proud!!! |
Not worried just keep dividend reinvestment at this price. |
Philip Morris is up 2.5% in NY and Altria is also up
The FTSE is a pathetic market at the end of the day |
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