put money into this share for income as i am not far off the end of my life as given by family history but cannot accept that people are going to give up tobacco just like that..
as a exsmoker of 45 years still alive and kicking i can understand the problem with the love of tabacco as it is relaxing..now totally not agreeable in society which seems to accept drugs instead which are illegal..
strange world we live in today.. |
Bats is about 7% of my portfolio with focus on dividend returns. I hope the FY results can provide a clear strategy moving forward that does not give the message cigarettes are finished. This negative spin only accelerates the share price erosion and does not take into account other counter factors, such as growing populations with extra billion people by 2050. I stay invested , but need more optimism in the business leadership |
as always when it cones to the stock market.. |
I was just studying the balance sheet on last year final results and BATS have 129 Bln intangible assets and the 25 bln impairment will be subtracted off that amount, also at this stage its unclear if the 25 bln is subtracted in one hit or done gradually over the 30 year period. Whatever the outcome even if 25 Bln is subtracted from the 129 bln of intangible assets I would assume IMO today was over done. |
W/O do affect p&l . Reducing tax burden. Win win to reduce debt burden. |
BATS may gain some browne points tomorrow |
6th Dec'23:-”Menthol cigarettes ban to be delayed – report”
A ban of menthol tobacco cigarettes is expected to be further delayed and won't likely be finalized until March 2024 at the earliest.
The Washington Post reported that while the Biden administration is slated to finalize the rule early next year, it could be further delayed as it could negatively impact Biden's re-election chances.
Data from the Centers for Disease Control and Prevention indicates 81% of Black smokers prefer menthol cigarettes.
Given Biden's current low approval rating and concerns over low turnout among Democratic voters, advisors are apparently wary of enacting a law that could anger many Black voters.
The newspaper reported that the American Civil Liberties Union and some prominent African-American community leaders oppose the ban as they believe it will lead to a menthol cigarette black market, which could lead police to disproportionately target Black smokers. |
New CEO doing a kitchen-sinking job here with the asset values of US combustible brands similar to Bomhard's kitchen sink job he did by slashing the divi by a third at IMB.Might as well get all the bad news out there before starting your tenure as CEO.Now the pressure is on here to deliver a strategy and results like he has achieved there. |
car1pet,
Thanks for your input over clarification of how I read it, if this is the case then todays drop could be considered over done? I would suggest yes today was over done and I've bought into BATS today with average of 2267.
As per usual it will be suck and see where this goes but hopefully up and its Ex-div on the 21st Dec paying 57.725p on 1st Feb 2024. |
The bullish case is the industry is entering a run off phase and will return huge amounts of cash to holders over the next 20-25 years.
That rational would hold more weight without the current huge net debt levels |
car, problem with non cumbustables is
you don't need to be a tobacco company to manufacture, so arguably more competitors. |
Turvart and Careful: yes this is saying the asset value of the US brands will reduce over 30 years to zero. If you think about it that's a reasonable assumption to make with the negative views about smoking. If in the future smoking of these brands has a revival then taking the hit today on the balance sheet could be beneficial. Example this week with lloyds who wrote down £1.2bn on a loan a few years ago and now the loan will be repaid by the new owner of the Telegraph so it results in a upside of £700m.
The business has plans to transition from combustible products so provided the plans are realistic no reason why the share price should suffer further and there could be upside coming in the next few years as the transition takes place. All IMO DYOR |
A rubbish awful day .. BATS now -30% for 2023..... stinking the place out - literally. |
if BATS are to write don 31.5bn on the cigarette business then that is huge.
explains todays fall, or some of it.
They are going for a world record loss, but cashless. |
Regarding the impairment charge of $25 Bln, after reading about it would I be correct in assuming this 25 Bln is written off starting from 2023 over a period of 30 years? |
Barclays have BATs as a buy from a hour ago, 3200p.In the meantime I will collect the dividend in the tax free Isa bag.https://www.marketscreener.com/quote/stock/BRITISH-AMERICAN-TOBACCO--4001163/news/BRITISH-AMERICAN-TOBACCO-Barclays-remains-its-Buy-rating-45513824/ |
Oh Monty, wtf happened to your £26 forecast a month ago and only a 50p move today?IMO If it's a non cash impairment then on the BS not P&L thus not expensed and no tax credit etc.Nearly a years divs vanished in a day.Me thinks you need to rebalance your focus on capital and total return? :) |
Blue finish anyone? LOL |
Almost back to 2300 |
As I understand it, the impairment charge is a balance sheet issue so wont affect corporation tax. Corp tax relates to profit not balance sheet I think |
When the recession hits, cash will be king and these consumer defensives are the ones that keep coughing up the cash lol |
The buying has started as it's way overdone, it's the biggest cash cow going whatever the impairment |
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