May be I should try 2200p as entry b4 exd. |
Shall I buy now or waited for exd drop. Any resistance level which is best entry point to average down? Anyone? |
Fund managers must be fuming at the CEO doing this. Shareholders own the company not directors. If he does not increase the dividend February he should go. It's a cash cow. |
Another knowledgeable supporter of BB's. Topaz hopes Altria will sell it's 10% stake in A-B, gift the money to BATS for debt repayment and whatever is left used as a BB fund.
Stunning. ;-) |
Sorry I made a mistake it is Altria that owns a 10% stake! LOL |
Yes Una it's true
We should dispose of our A-B stake and pay down debt and start some hefty buybacks |
BAT ad in the FT today |
Topaz...are you sure bout that? First I've heard. |
We also own 10% of Annheuser-Busch |
Correct monty. About £500m+ divi from ITC this year. |
At least BATs have a good stake in this growing company ITC with a nice dividend being paid by ITC. |
ITC India third largest tobacco Co. 67 billion . Bigger than BAT. |
I doubt they can take BATs over. |
ITC market cap bigger than Bats surely not. Perhaps they take BATs over, lolhttps://m.investing.com/news/stock-market-news/itc-surpasses-bat-to-become-thirdlargest-tobacco-company-93CH-3253212 |
 Value: you asked the following question - presumably directed at me:
ValueHurts 9 Dec '23 - 22:39 - 8107 of 8110
If you are not confused why are you talking about buying out a partner in a real small business when we are illustrating buybacks?
I'm certainly not consfused. But perhaps you are as 10+ hours earlier you posted the following example, a decent enough example, but I think my expansion on the 'small business buy-out' was more accurate.
ValueHurts 9 Dec '23 - 10:24 - 8086 of 8110
If 5 people own a share of a business and 1 of them wants to leave they decide to use some earnings to buy out that person. The company buys the share and cancels it. The remaining holders have increased their share in the business to a quarter each. If 5 people owned 100 shares each and we did the same but instead of cancelling the shares from the leaving partner 25 shares were distributed to the remaing 4 after being purchased it would have the same effect. The remaing partners would now own a quarter of the company each.
It's probably best if we don't talk anymore about BB's. |
I'm not going to bother talking about buybacks anymore. The management understand so eventually we will get them anyway. You can create a synthetic dividend from a buyback if you don't like them. |
value i would give up if i was you.. |
With the ITC holding they could sell and return the proceeds to us as a third of market cap. Hardly any of our actual cash flow comes from ITC. From the piece below you can see how they have invested loads into low return businesses. Perhaps we can get oral nicotine over there and get a royalty but I think they would try and screw us on that to be honest. If you have read Barbarians at the gate you will know how tobacco companies can be used to great giant conglomerates without regard to shareholder returns. |
If you are not confused why are you talking about buying out a partner in a real small business when we are illustrating buybacks? As to how you talk about assets and cash being taken from the company to buy back shares this is true but a company is valued on the present value of its future returns to shareholders not on the basis of its current assets. Especially in tobacco. |
Increase debt to buyback shares? hard to justify sometimes.
It depends upon the cost of capital, the profit/dividend and value of assets.
Warren Buffett has strict rules as to when a share buy back is justified.
If Buffett has loads of spare cash earning very little and he thinks his share are undervalued he buys back.
..but not if he sees a better bargain elsewhere. |
Value: my post 8099 is MY understanding of a classic BB. Is my understanding wrong? Like discO I'm not at all confused. |
My last response as bored now.Try reading my post 8082. Pmsl, not in the slightest confused. |
I really cannot believe this. I was asking if you would like the shares bought from the market as from a mathematical perspective on an individuals ownership in the business this is exactly the same as a buyback and cancellation. I was trying to help your understanding but you seem to have got even more confused. |
Great read Berny3. Thankyou. |
Register for real-time alerts, custom portfolio, and market movers
Hot Features
Premium
