Anyone know when BATS have their Final Results?
Their website only seems to have dates for 2023 |
hxxps://www.ii.co.uk/analysis-commentary/sector-screener-two-stocks-attractive-long-term-returns-ii530399
Good luck all 👍🏻 |
Buybacks should start in H2
Until then this will remain range bound and undervalued imo
Collect the dividends for the time being .. |
January 10, 2024 at 04:28 am EST
BAT announces the launch of a new version of its Glo range vaping device.
Glo is presented by BAT as 'an alternative to smoking that does not involve combustion, producing fewer toxic substances than conventional cigarettes'.
The new device, the Glo Hyper Pro, is said by BAT to offer improved performance. With this new device, a charge takes around 90 minutes and lasts all day. Once charged, consumers can expect to use the device for a total of 20 sessions'.
To date, over 8.8 million adult consumers use Glo," points out Kingsley Wheaton, BAT's Director of Strategy and Growth.
The Glo range is available in over 20 markets worldwide. The Glo Hyper Pro has been launched in Japan, Italy and Poland, and further global rollouts are planned for 2024. |
Lord Wolfson (NEXT CEO) is regarded as an expert on when and why to buyback shares (see link)Https://hollandadvisors.co.uk/wp-content/uploads/2021/03/lord-wolfsons-wisdom-on-share-buybacks.pdf |
Think you miss the point. A BB should as I've posted only happen when the equivalent rate of return is better than the profit generated by investing directly in the business.If the BB reduced the shares in issue by say 10%, then eps will increase 10% from say 100p to 110p without having to increase income. If the market is rating the business at a PE Zof 15x, then the target price pre BB would be 1,500p, post BB the value would increase to 1,650p. BB's are favoured by the US so the rating could increase further plus the same applies because earnings have grown possibly more than forecasted.Cash for Dividends is not investing in the business and as posted previously what dividends?, for BATS medium / long term you've lost divs in capital depreciation. |
Down in the US at the moment |
 disc0: to answer your question as to why I invested....it was to reap a decent dividend and one that pays out four times a year.
If a company has spare cash and is able to buy back its own shares the hope is that the resulting lesser number of shares will each own a little bit more of the company that was the case before the BB.
But that extra value comes at the expense of no longer having the cash sat in the bank account. So, it could be saif the company is less valuable without that cash.
It diminishes the ability to pay a dividend of an equal value to that paid in the previous year - particularly when profits may not have been as healthy as that previous year. The flexibility of using cash reserves to boost divi. in tough times has been spent on the BB.
Now, if the theory of an increased share price really does result from the BB, and it often doesn't or at best, isn't overly obvious, then my own share valuation will have increased but given I didn't sell my shares when they fell significantly I'm not enamoured by the fact they've risen.
That dividend I'm after, it NOW buys a lesser number of shares than it would have done before the BB - again assuming the BB really did raise the share price
To sum up, it is hard to determine if a BB has done the job of raising the share price It is very evident though that the money used has now gone and any alternate uses for that cash have been blown. |
There is an increase to the business if the equivalent rate of return is in excess of what they'd have to invest in the business to get the same return to their bottom line. It's an investment the same as you buying shares, so could ask why did you?!!.Plus an increase in eps (yes if profitable) will be reflected in their rating and increased valuation of the stock.Not saying I'm in favour of BB's, I'm on the fence tbh, it just doesn't influence me to either invest or not in the business. |
disc0: there is no return on money spent on BB's.
There's an increase in earnings per share - or increse in loss per share if a profit isn't made.
With debt reduction there's an immediate saving insofar as interest is no longer paid on that debt.
I would never countenance a BB with any major debt in existance. |
“The big money is not in the buying and selling but in the waiting.” Charlie Munger (1924–2023).
“The stock market is a device for transferring money from the impatient to the patient.”
Warren Buffett.(Still at the crease). |
Have to disagree given the share price here is back to where it was in 2010. Don't like to see BB's when there's debt on the balance sheet but it's all about the equivalent rate of return. |
GE was a great business under Lord Weinstock.Lord Simpson was an idiot. |
We don't want them to high on 1st Feb, payday with our dividend reinvestment. More bang for our buck, lower the shareprice, lol. |
monty: the share price is now heading in the right direction without the assistance of any buy back. The time to have used a BB efficiently has passed. |
“The big money is not in the buying and selling but in the waiting.” Charlie Munger (1924–2023). |
Last year dog of the year, will it turn out best in show this year, we want increased dividend and if possible buybacks, also don't sell the stake, the jewel in the crown, ITC. |
Weinstock must have been turning in his grave Shocking destruction of a great business GEC to Marconi |
lippy4: I like those kind of stories. They make the thread more human. Thanks. |
in the US the price is climbing equivalent to 2396p at the moment. Quite often it falls back at the end of the trading day |
good point redbaron10 |
Car1pet ITC and Japan Tobacco are conglomerates with various interests.Both have hotels,ITC has an agri-business,JT has a food processing business.Diversifying into growth areas outside tobacco isn't impossible but I'd like a lot of due diligence first if they plan such a move.I remember GE before Lord Simpson turned it into Marconi and see how that ended! |
In a roundabout way, Bats is a cheap way to have an interest in a great company ITC, if you fancied ITC. |
#Montyhedge, the ITC holding is indeed a jewel, a 37% FY CG and 29% of the dividend paypout.. :o)
The Groups interest in ITC decreased from 29.38% in 2021 to 29.19% in 2022
The Groups share of post-tax results of associates and joint ventures increased from £415M to £442M which largely relates to the performance of the Group’s main associate, ITC Ltd (ITC) in India. The Group’s share of ITC’s post-tax results was 22.7% higher at £514M (2021: £419M).
Added a few more BATS this morning and will continue to do so through H1, the steep discount and 10% yield makes it a great buy for income, yes there was a write down, but I doubt it will impact the dividend.. |
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