British American Tobacco Share Discussion Threads

[action] 22/2/2021 13:28

It is roughly the same share price on result day dip. So I think it may go down further as MM did with AZN - from high of 7500p to low of 7200p DYOR.

[krowelet] 22/2/2021 12:28

well over a million squids worth, great vote of confidence there.

[geckotheglorious] 22/2/2021 11:13

Luc Robin,NED, seems to agree this is undervalued.
Bought 45,000.

I concur. Very undervalued. Been nibbling in smaller size of course!

[daneswooddynamo] 22/2/2021 09:40

As Keynes said in the short term the market can remain irrational longer than you can remain solvent. Certainly back to that sort of environment in my opinion so if you can take advantage of some of these opportunities should prove pretty rewarding in the medium term imo

[apollocreed1] 21/2/2021 16:05

Can anyone tell me please what the potential is for vaccine collaboration for this stock and I Philip Morris who are also doing vaccine development using tobacco? I bought BATS at £28 because I thought they would do well from developing a vaccine. If they do, how much will that add to their profits as a percentage? I suspect that the vaccine branch of this business might not be a bid deal in the end.

[essentialinvestor] 19/2/2021 14:03

Added a few.

[creditcrunchies] 18/2/2021 23:11

The key to tobacco's is that they have enormous margins BATS is around 38.6%, IMB is even higher I believe over 40%, if you look at Royal Mail it's about 2%, BP in 2019 is about 2.8%. Those types of blue chip need enormous turnover to squeeze out profit. So tobacco's create huge profits on lower revenues hence why they can easily maintain dividends, they also have a premium with brand value. If they need capital they can sell a premium brand. The tobacco sector is also recession, depression, world war, and global pandemic proof. Dividend cover is 1.5 BATS and 1.78 for IMB.

[pander45] 18/2/2021 21:16

Superficial sound bite analysis. The fundamentals are very solid compared to the many growing basket cases out there.....

[rimau1] 18/2/2021 21:12

Zico, bit of a lazy throw away comment! “Debt off the scale and dividend unsustainable” - In 2020 BATs delivered £2.6bn of POST dividend free cashflow which it used to pay down debt. By end 2021 debt will be 3x adj earnings which is very comfortable whilst the average debt maturity is 10 years. I took a maiden position today and will add on any further falls. IMO this is a nice counter cyclical play on a rising dollar, global travel resuming and a defensive hedge for a future market correction. On 8x earnings and 8% sustainable dividend i will sleep well.

[zicopele] 18/2/2021 20:48

Debt is off the scale. The dividend us unsustainable.

[zicopele] 18/2/2021 20:48

Debt is off the scale. The dividend us unsustainable.

[linton5] 18/2/2021 14:43

Pm and mo are showing bat the way in USA so far ahead on the chart front of course being in the uk is probably the problem

[philanderer] 18/2/2021 11:48

GOLDMAN SACHS CUTS BRITISH AMERICAN TOBACCO PRICE TARGET TO 3,700 (3,900) PENCE - 'BUY'

[catswhiskas] 18/2/2021 11:16

Oversold overdone anyone would think there's been a profits warning !

[creditcrunchies] 18/2/2021 10:43

market doesn't like these results for whatever reason I think it's just tobacco in general though

[topazfrenzy] 18/2/2021 08:38

Had to add another 50 shares to my long term holding at these levels

:)

[philanderer] 18/2/2021 00:53

British American Tobacco Full Year Results - Market Overlooking Some Key Positives

[philanderer] 18/2/2021 00:44

02/17/2021 | 12:56pm EST

In his latest research note, analyst Alan Erskine confirms his positive recommendation. The broker Credit Suisse is keeping its Buy rating. The target price remains unchanged at GBX 3920
.

marketscreener.com/

[redbaron10] 17/2/2021 14:32

Congrats to those who picked up sub £26. I wasn't expecting the market reaction so didn't have any funds ready....sadly.8% divi.Nice.

[philanderer] 17/2/2021 13:56

London Ev Standard..

Freetrade analyst, David Kimberley said the results showed why the cigarette giant still made an attractive proposition for investors.

He added: “Beyond the commitment to another year of hefty dividend payouts, BAT remains a highly profitable business with lots of free cash flows and extremely attractive margins.”

[muscletrade] 17/2/2021 13:21

GS JPM and RBC all maintain their Buy recommendations today while Jefferies maintains Neutral.