FTSE 100 dollar earners, with sterling very weak and going possibly below 1.20 to dollar, BATs will be given a boost to profits, bigger dividends boys. |
The bargains available 1st thing will soon be mopped up .. :o) |
Yes safe 8.19% yield at this price. Buybacks should underpin share price. |
Yes I agree and a chance to buy a dip created only because a large holder decided to sell and bank a profit.
Nothing wrong with that and nothing wrong with the company either and a challenge of 3000 will happen again soon enough.
Good luck all 👍🏻 |
Just filled my boots, seems good value. |
 Reinet on Tuesday agreed to sell its entire shareholding in British American Tobacco PLC to institutional investors, netting GBP1.22 billion.
The Luxembourg-based investment vehicle will sell 43.3 million shares in BAT at GBP28.20 each following accelerated bookbuild process, which commenced on Monday. Placing shares represent approximately 1.96% of BAT's share capital.
Reinet, which has a market capitalisation of EUR4.30 billion, intends using the proceeds from the share placing for its ongoing investment activity. BAT will not receive any proceeds from the placing, it said.
Following the settlement and completion of the placing which is expected to take place on Thursday, Reinet and its subsidiaries will have fully exited their position in BAT and will no longer hold any interest in BAT.
Reinet also owns interest in entities like Pension Insurance Corp Group Ltd, and Prescient China funds.
As at September 30, 2024, Reinet's interest in BAT comprised 24% of the net asset value of Reinet, being about 48.3 million BAT shares.
Reinet expects to announce net asset value of its subsidiary Reinet Fund SCA on or about Thursday next week.
Separate from the placing, during November and December 2024, said its indirect subsidiary, Reinet Jersey Holdings Ltd, sold 5 million BAT shares through a "dribble-out" process on the London Stock Exchange, realising gross proceeds of some GBP148.5 million. |
Wow, holding well I thought below 2800p. |
Reinet selling all their BAT shares. |
Heavy volume today and yesterday |
#Fenners66, you are not alone, I loathe debt, it is a parasitic drain on profits, you get banking covenants imposed on you and have to measure a KPI to keep inside those limits, build cash and get it gone, even more so in the current higher interest rate environment..Debt fuelled growth when it was almost for nothing had its merits in the past but not so much now eating into the EPS/PBT |
I was not trying to be specific to BATS with the Buffett BB comments.
I hate BB's and have offered loads of reasons not to do them before.
But listening to Buffett its obvious to him that management have to be
as good at BB's as they are at investing.
For instance sitting on all that cash - which I believe is earning something
like $12-15bn a year in interest he's in no hurry. He's not up for re-election
any time soon either I guess.
Whereas as above many businesses work on the basis of their plucked KPI
for debt. Thus they are never going to have the cash on hand for the industry
consolidation that's going to happen in a few years time.
Debt equals lower profit.... great they say that means lower corporation tax !
WTF are they in business for then ? |
late trade at 18.14 for 100k shares at 2885p. a bit strange |
#LLB- Can't see NGP investment reducing anytime soon, if anything it will be excelerated with hopefully more products hitting the market.
Excess cash will be used for BB or debt reduction, As much as I would like it, just can't see a dividend increase/ special.
IMO. |
It will be interesting to see how it plays out #Tag57, excess cash will hopefully go 3 ways, reducing debt, dividends, buybacks, all value adding for holders over time, we will need to wait and see.. :o)
11.12.2024 - we will continue to reward shareholders through strong cash returns, including our progressive dividend and sustainable share buy-back, and we remain committed to returning to our mid-term guidance of 3-5% revenue and mid-single digit adjusted profit from operations growth on an organic constant currency basis by 2026. |
LLB - that is my point though, just because they are within their debt target KPI, an arbitrary figure set by management, should mean any cash on the balance sheet is “excess” to requirements. |
#Tag57, provided BATS are inside their 2.0-2.5 net debt to EBITDA, the business is functioning as it should generating FCF with excess cash, I see debt coming down as the NGP investment phase reduces.. |
How can any of the cash on hand be considered excess when BATS is carrying a lot of debt? |
I bet Reeves if she still there, will tax tobacco to the hilt, March budget try to get some money in, UK gilts yield 5.4% incredible. |
#Fenners66, interesting views, perhaps excess cash generated here at BATS is easier to define, we know the stick sales business volumes are in decline so we cannot reverse and grow this and we are already ploughing cash into NGP growth, the RnD centre is having a big makeover (thanks #Tri Harder for this snippet)..
We also know the ITC hotel disposal is going to leave us with 15% of that business, this is non core, so could well be up for disposal with that excess cash to be returned to shareholders through further BB or dividends..
See IF we can break the 3000 pence barrier this week, but round numbers do seem to take a few runs at to get through and close over, but the company is still buying so it should just be a matter of time..
All considered, happy to hold here and wait.. :o) |
Listened to a Buffett lecture the other day.
He is often cited as a great supporter of BB's.
However he actually said stuff like ...
Buy back shares out of Excess cash. Once you have done everything else you can with it to
boost profit.
Only buyback the shares when they are below intrinsic value - we know that most could not
correctly assess intrinsic value.
Then be patient wait for the right time and stop when share price climbs beyond your range.
Seems to me that the reason BB's go wrong is that BOD ignore all these sensible comments
and just "do BB's "
First Excess cash - not excess debt availability - so many BB's are done with borrowed funds
BH is sat on a massive pile of cash $200-300Bn at the moment but they are not splurging it all
on BB's as WB knows when the market falls he may want to use that on some serious investments
Intrinsic value and patient - BB's are decided in advance sometimes up to a year in advance
like "next year we are going to spend £1bn on buybacks and put this in the hands of independents
so we don't use our skill and judgement at all.
WB says BH does not use investment bankers and outside advisors to spend their cash.
How can setting a BB in advance get it right ?
That's without a massive pile of other arguments I have been into many times before about
BB's |
#anhar... precisely, That's why no one can say whether share buy backs supports a share price or not.
What's obvious is the company "think" the shares are cheap to buy them up, rather than invest the money elsewhere in the company. Time will tell if they are correct. |
That question cannot be answered. But having been investing for decades I have seen far too many shares indulging in bbs whose share prices have fallen or gone nowhere, though you might claim it would be even worse without the bbs.
I don't see how it can't be proven either way whether bbs benefit share prices but I as see it, the information is all public so that the institutions who will be the sellers are waiting to dump some stock into the bb. There's no surprise element to spike the price. So I think the eagerness with which many small investors welcome bbs is misplaced imo. |
#anhar "buybacks do not support the share price" So without BAT buying back it's own shares recently, Where would the share price be today? |
#LLB Forgot to say, Good entry point to get into BAT, My advice if possible just keep re investing the dividend.
The power of compound interest is amazing!
Especially with Bat renowned for keeping the dividend hign. |
A couple of classic small investor misguided beliefs here.
1. 3,000 or any round number is irrelevant, so that going above this means nothing and is no more significant than 2,999 or 3,001. It just sounds nice to some people but the big investors who make the market do not care at all about round number prices.
2. Buybacks do not support the share price. They may have other benefits to investors but supporting the price is not one of them. |
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