Continued pessimism will keep people smoking. Once Trump returns some people might just set themselves on fire instead |
First interest rate cut likely deferred until later in the year or next now. So yield here vs risk-free treasuries considerations.
Also, price of rolling debt higher (and BATS has plenty!). |
price has fallen 50p since this morning. US inflation up but cant see why that affects BAT |
Have got this and Diageo paired up
In light of the share buybacks remaining pretty constant here 280/300 on a daily basis will be watching with interest this morning and over next few days
Seems to be serving its purpose at moment.
Very attractive dividend on offer here will keep investors coming back for more.
Might have to throw my principles out of the window as an ex smoker
Money talks
Good luck all |
I've just topped up my ISA for this year and was considering buying BATS. Good job I held off. Is it heading below 2300? looks that way but who knows |
I was looking at Berkshire Hathaway 'B' shares the other week. The yield is zero so I'm guessing there will be no withholding tax. The growth is derived from the share price increase (I'm guessing).
I hold no dollars in my SIPP cash pool so would need to buy each share (approx $418) using my sterling cash and I would in turn pay a currency conversion fee.
I did not look into things any further. Easier ways to invest I think. |
A withholding tax of 15/30% on ISA income from USD dividends is a good enough reason for starters.. |
Why doesn't bats follow shel to the US to escape socialist basketcase anti business cesspit Britain? Britain is now a country where aspiration and profit are bad words. We are run by woke appeasing pathetic spineless morons who dance like puppets for the perpetually outraged idiots. We have NO strong government and desperately need pro business policies on steroids. Release the shackles or keep dying a slow death. |
tax fast food as it does more damage than ciggies,10% of the nhs budget is spent on obesity drugs so how much does the government get from people eating them selves fat..??
and dont give me the old chestnut of they cannot afford to feed them selves as fast food is cheaper which we know is absolute rubbish..just learn to cook!!! |
Backtest of the lows and bottom formation?
Or will the downward trend continue?
Valuation Attraktiv. I am waiting for a bottom. |
What do you think of the cash flows size? About 16%FCF yield after interest is payed. Not really that much considering that it doesn't seem to be growing? What are your expectations with your investment in BATS? I like the stock, but am afraid a stock with a lower yield but higher growth might outperform? |
Tax on tobacco is a massive revenue earner for governments too. |
"When is the government going to bring forward the new legislation on banning cigarettes for 18 year olds"
Why ban such.
Nanny State and big Government.
People way too quick to start banning things. |
When is the government going to bring forward the new legislation on banning cigarettes for 18 year olds,or is Sunak worried the vote might turn into a vote of 'no confidence' if Labour plays politics with the issue and vote against it, and enough Tory back benchers rebel? I know it's a public health issue but Labour could argue by voting against it they are trying to force an early general election and that that's in the public interest, and they intend bringing forward their own legislation on the issue.It's election year and politics gets murkier and more cynical than ever(if that's possible). |
So, monty, the BB cunning plan is working - share price rising? :-)
I've come to the conclusion that BB's provide a small rise in share price at the announcement stage. During the program the wider market dictates the share price movement direction. If the share price falls, a greater number of shares can be bought. The converse of course if it rises.
At the end of the program I do accept there are less shares in existance and hence the EPS will be greater. But that's about the only effect. All in my opinion of course. |
Directors probably glad shares have fallen, they are getting the buybacks a pound a share cheaper than a week ago.More bang for their buck as the yanks say. |
I have a small investment here (dwarfed by my IMB investment) and have added a second, bigger amount this morning. Risk/reward looks compelling in my opinion. |
Thank You Tag57, just showing a model in which overtime Original Investment Capital is not lost. It is linked to a USA Law firm bringing a Class Action where they say some people lost $`100,000 with their Investment. I run a few models with between $200,000 to $500,000 and so on over 5 years. It showed no loss from their Investment only if they sold.
Happy Investing |
Hope, so as long as the share price drops less than the divi compounds, everything is ok? Except for the opportunity cost or if the share price declines more than the divi compounds.
Makes sense but not sure you are stating anything new? |
 British American Tobacco DRR (Dividend Ratio Return) Scenario
2023/24 Compound Model If share price drops
Investment £23,290.00 £23.06 per share 1000 shares
Dividend Q1 1000 £588.79 SHARE PRICE DROPS TO £ 22.84
1025 SHARES Q2 £603.61 SHARE PRICE DROPS TO £21.94
1052 SHARES Q3 £619.41 SHARE PRICE DROPS TO £20.98
1081 SHARES Q4 £636.49 SHARE PRICE DROPS TO £19.99
1112 Share Total share price bounces back £21.02
DRR is 20.94
2024/25
Investment 2023 Static £23,290 (1000 shares)
1112 shares forwarded from 2023/24
Dividend Increase 1.5% £2.3939 Break down £0.5984 per quarter
Dividend Q1 1112 £665.52 SHARE PRICE DROPS TO £19.75
1145 SHARES Q2 £685.16 SHARE PRICE DROPS TO £18.78
1181 SHARES Q3 £706.71 SHARE PRICE DROPS TO £17.58
1221 SHARES Q4 £730.64 SHARE PRICE BOUNCES TO £18.78
1259 Share Total share price is £18.78 £23,644.02
DRR £18.49
This scenario shows the original investment is not lost if Dividends are re-invested over 2 years and the share price falls by 20%. The wider margins of a fall would still compound increasing shares and the DRR model would still show no loss on the original investment.
This is my research and Linked to my recent post on the Dividend Ratio Return Model. Overall unlikely to happen but it is interesting to cover bases on what may happen, so people can see that Original Investment is not at risk.
Happy Investing |
British American Tobacco Year 2024
27.3bn Impairment over 30 years impacted balance sheet loss (15,751.00)
Operating £12,465 Billion profit 2023 Increase
Current Liabilities Borrowing 4,324.00 Billion
Non-Current Liabilities Borrowing 35,406.00 Billion depending on the Ratio of debt in dollars or pounds in which country the debt is taken with currency rates. Reduced by 3.3 Billion since 2022
ITC 3/4% sale rising Capital for share buyback reduced holdings to 25.3%
ITC Hotels share Float in November 2024 Bats own 17% and will sell position rising a further Capital towards debt reduction and Buyback in 2026/27.
Russia's position was sold to the management team
Dividend growth 2% (Dividend Cover 1.5)
5 year Period Bats Operational Profit has increased
New product line Profitable forward-looking Revenue to increase in this category.
Overall Forward-looking British American Tobacco's coming year may see New Product lines (Vapes etc) become more Profitable. Capital position increasing with ITC Hotels sale. British American Tobacco Debt decreasing with Net debt Payments resulting in an Interest Rate Fall in the coming 12 months. Operational Growth in profit is in line with Guidance of 3-5%. Dividend Payments well covered for the next 2 to 3 years with a growth of 1.5% to 2.2% yearly. BATS Portfolio in World Markets is probably to increase in value coming 5 years. |
finkie
Post 8817 gives an updated correct update on buy back as of yesterday
Please take the trouble to read
Ta |
Neilyb645 - don't forget the 'b' :-) |
ok confused on buy backs how much have they got to spend and how much is left to spend. |
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