British American Tobacco Share Discussion Threads

[scepticalinvestor] 06/8/2020 13:36

should bounce now - us nfp numbers better than expected

[scepticalinvestor] 06/8/2020 12:50

ok looks like 2400 is backinsane

[scepticalinvestor] 06/8/2020 12:41

both good points

[minerve 2] 06/8/2020 12:34

Simba_

"Minerve, that all sounds great but the same arguments could have been made at £40"

No, not really. Not in my case anyway, what you paid for it in the past is irrelevant.

The share is of value now or it isn't. The share doesn't owe you anything.

[simba_] 06/8/2020 11:43

Minerve, that all sounds great but the same arguments could have been made at £40 and chasing the price down further would have been a terrible decision as things stand..In any case, I was pointing out why someone would want the price to go higher. A good dividend yield is great but if the share price continues to fall we still lose money in the end. Ultimately, we need the market to agree with us. And for the record, I do intend to buy more here.

[stepone68] 06/8/2020 10:39

Simba_ - get re-investing those divis. You will find in a few years that things don't look so bad.

[minerve 2] 06/8/2020 10:37

Well, I am buying and compounding all the time. If you bought higher, perhaps so should you be. After all, if business prospects haven't deteriorated and you were prepared to buy higher why not be buying lower? If you are not buying lower it might be because you lack the knowledge sufficient enough to support your investment conviction here. If you can't overcome that concern then perhaps it is best to sell and buy another company where you do have the knowledge and strength of conviction.

It is something we are all facing from time-to-time. I recently sold out of Phoenix Group because I simply didn't understand the business enough to warrant a larger holding and to be honest I wasn't interested enough to find out more. You have to have the energy and desire to be interested or investing just turns to speculation.

[simba_] 06/8/2020 10:20

Thats only true if you're buying at this price. Many people bought much higher so the return from dividends isn't enough to cover the erosion of capital that comes from the fall in share price All be it paper.

[scepticalinvestor] 06/8/2020 10:09

Fair point. But I like to have my cake and eat it!! ;)

[minerve 2] 06/8/2020 09:48

Sceptical

Not sure why you want the share price to go up. Company is seemingly doing well. You get a great covered dividend. NAV going up. Debt going down.

Staying low means you can recycle dividends at better compound rates. This is an income stock after all.

[scepticalinvestor] 06/8/2020 09:45

Similar talk in 2008...

[buywell3] 06/8/2020 09:32

The 50 Billion of debt isn't an issue some tw@ts have said

The USA next year will be on 200% Debt to GDP Ratio

Then ALL debts become a very big problem as the $US tanks into the sunset

[scepticalinvestor] 06/8/2020 08:17

this is such an annoying stock!constantly down

[trikytree] 05/8/2020 12:50

Added another 779. Makes this my 3rd largest holding now after BP and RDSB. Way too cheap.

[minerve 2] 05/8/2020 12:20

"Someone needs to light a fire under this!!!"

It's heat not burn now. ;)

[perplexedinvestor] 05/8/2020 12:00

BATSA in court today and tomorrow to try and overturn the tobacco ban in South Africa. I would have thought going up against the SA government was futile but we can always hope.

[scepticalinvestor] 05/8/2020 11:32

Someone needs to light a fire under this!!!

[minerve 2] 05/8/2020 10:57

Zicopele - the resident Chicken Licken.

[zicopele] 04/8/2020 23:22

Numbers smoking have been in decline for years.

This will accelerate in a recession deeper than any previous recession of the last hundred years

[polaris] 04/8/2020 18:41

Discretionary spend? Have you ever met a smoker who can cut down on the number they smoke because the cash coming in has reduced? You make it sound like chocolate. The majority of smokers don't even think about it: wake up..smoke, get breakfast...smoke, go out...smoke, etc... The spend is classed as fixed costs, like rent or mortgage!

As i said yesterday, how many bond investors would bite your hand off for 1.5-2 % return right now? Treasuries are at historic lows, as are gilt yields. Apart from the BS ethical investing crowd (there is no such thing, you politically correct whack-jobs: investing = capitalism = maximising returns = screwing people over...get used to it) any sane pension fund will want a good set of reasonable yield bonds. Roll up tobacco (pun intended!)

[andrewbaker] 04/8/2020 18:26

Fill ya boots, everyone: this is just too damn cheap!!

[riverman77] 04/8/2020 17:18

When inflation starts to take off that debt pile will start to come down (at least in real terms).

[stepone68] 04/8/2020 17:01

Zico - I'm not sure tobacco is particularly 'discretionary', and it's definitely still defensive compared to other sectors. And we live in a low-interest rate environment now - debt is not as much of an issue.

[minerve 2] 04/8/2020 16:29

Give it a rest zico.