British American Tobacco Share Discussion Threads

[this_time_its_different] 27/11/2018 19:10

Pretty depressing drop. I bailed at £33, never imagined another 20% to be taken off. I agree the board should be removed, using debt to buy menthol cigarette brands, which after a year are potentially going to be b_annne_d by the fda. Lol.

[stepone68] 26/11/2018 22:31

Nothing's happened to the company. Only the share price. Which is still up 50% since the financial crash in 2008, plus dividends, for not a bad return over the last decade.

[creditcrunchies] 26/11/2018 21:08

the board have got a lot to answer for you can't just sit there do nothing when the company you have been running is decimated I'm surprised institutional investors haven't raised the prospect of sacking them and getting in some new faces to turn this company around

[this_time_its_different] 26/11/2018 19:57

Seems too cheap, one for the brave I guess. I would never have imagined the stock price cutting in half.

[eeza] 26/11/2018 16:56

Lowest Relative Strength for the last 18 years.

[muffinhead] 26/11/2018 16:42

monthly chart



free stock charts from uk.advfn.com

[muffinhead] 26/11/2018 09:51

A bit of liquidation early doors is a good thing. Gets rid of the riff raff

[philanderer] 26/11/2018 08:50

Just BATS and IMB down then ? ;-)

Deutsche reiterates 'buy'

EDIT:

market report:

At the other end of the FTSE 100, tobacco producers, which often rise during times of market turmoil, were among a handful of fallers, with British American Tobacco and Imperial Brands down 1.2% and 1.0%, respectively, as demand for defensive stocks waned.

Alliance News

[this_time_its_different] 23/11/2018 15:25

Bats always trades on a lower multiple because of regulation risk. No industry is prone to dying overnight like tobacco, I dont see the point of a menthol ban, you might as well ban cigs at this rate and be done with the slow death(excuse the pun)

[philanderer] 23/11/2018 14:03

BATS, LLOY and VOD holding my lot together today so far.

[stewart64] 22/11/2018 19:33

Thanks for the explanation re. Reynolds. Doesn't look like great business taking on an extra 49 billion of debt to achieve a tiny gain in profits. I note Eps was 2.854 in 2017 and was 2.744annualised for H1 2018 but may fall once we have H2. Still could come in at a fwd. p/e of around 9.

Looks to me like they booked a 30 billion profit on their existing Reynolds holding based on the takeover price they paid to buy up the rest, which improves the balance sheet?

[this_time_its_different] 22/11/2018 18:44

This stock is trading very strange, the price is at 2011 levels now, this is more than a pull back, it's an absolute collapse in share price, which can only be achieved if future earnings are going to be severely dented. People are saying BATS is a strong buy now, but we haven't seen a bottom yet or retest of lows.

[this_time_its_different] 22/11/2018 18:07

BATS bought out the remainder of Reynolds American, which hint hint has the leading menthol brand (newport) in the US.

[stewart64] 22/11/2018 18:04

Having another look at these shares as a potential buy. Bit puzzled by the balance sheet action last year. Intangibles got bigged up from 12 billion to 117 billion meaning the impressive price to book of one is entirely derived on intangibles at twice Market cap. Anybody know what the cause of this was, presumably acquisitions?

[this_time_its_different] 22/11/2018 11:30

Though Brexit being smooth, Fed stopping rate hikes and no more trade w-a-r will calm the markets and would lead to a rise in BATS share price regardless. The key test will be getting brexit through the UK parliament and the next FOMC meeting. IF both are successful, I see all stocks rallying....this includes BATS.

[this_time_its_different] 22/11/2018 11:25

The problem is the FDA and their a-ttac-k on tobacco, the FDA commissioner is only in post till the president resigns or is removed from office. So most likely trump loses in 2020 and Scott Gottlieb is out. This could be the saving grace for BATS. As the commissioner pretty much dictates policy at the FDA.

[this_time_its_different] 22/11/2018 11:18

Like I said, if sterling rises more and more pressure will be put on BATS.

[philanderer] 22/11/2018 10:47

Menthol Ban Leaves Tobacco Stocks Undervalued

[action] 22/11/2018 10:03

This keeps going down like centrica. anyone expecting to see £20-£22.?

[pugugly] 21/11/2018 11:37

CC: Nice one - reminds me a bit of home made beer making before it was legalised

[creditcrunchies] 20/11/2018 20:46

seeing a stock drop -50% in a few months on a plan from the FDA that cannot ban cigarettes because it does not have the power to do so. All they can do is tinker with tobacco flavours, vape flavours, and nicotine reduction which will only be applicable after big tobacco takes the FDA through the courts and lobbying powerful politicians over many years. The FDA do not have the science to force a lot of these changes through meanwhile multi billion $ profits will just keep on flowing. If this goes to £20 you'll be getting forward yields over 10% in dividends on a forward PE under 8.

The problem with the FDA is they are creating a market to get around restrictions which they won't have any authority to control anymore because it'll be a black market. I've managed to get around most of the EU vape restrictions with over sized tanks, making my own liquids. Some people even make their own mixes and sell them between themselves all of this does is take it out of regulation the same market still exists except before it was controlled as it went through a retail network with guidelines and consumer laws. The menthol vapes are easily made you get a large bottle of VG base liquid (from the food industry), some nicotine shots to mix in with the base then add 10% food flavourings (from the food industry) - menthol, mint etc voila you've got unregulated menthol vape liquid with nicotine. The mixing recipes are all over the internet including the fruit flavours they are trying to ban also. At the moment though it's easier to buy off of the shelf regulated liquids because like most people can't be bothered they want it ready mixed.

[ohojim] 20/11/2018 15:34

I be taking some comfort that ftse dropping but BATS still flying (Jim looks for wood to touch)

[creditcrunchies] 20/11/2018 15:30

Everything looks oversold at the moment the FTSE just keeps dropping

[ohojim] 20/11/2018 12:16

Well it looks oversold, 2700 seems vaguely supportive and there's a gap to be filled so I have just dipped my toe in for a swing trade, which may well turn into an investment but I fancy the odds either way.

[creditcrunchies] 19/11/2018 19:08

I might load up some more when we get closer to the next ex-div date end of Dec 2018 we'll see but the FTSE looks like it's in a bear market at the moment that's the only worry