British American Tobacco Share Discussion Threads

[fenners66] 16/4/2024 11:21

Looks like they are tendering for repaying very long dated debt which is some of which is currently a low coupon 2.25% but ranging up to 4.75% for ... a 5% early redemption premium + a floating rate premium of about 1.7% ... ?

So why repay long dated ?

Could it be the market value at current interest rates is below par ?
But does this tender mean it has to be above par ?
I have not looked at the debt profile - have they got shorter or more costly debt which would be preferable to redeem?

It may be a measure of their cash flow that they can target such long dated debt - look how strong our cash flow is ...
and it would obviously mean many years of interest saved.. but surely the onus for most companies is repay short dated so that the short / medium term is under control and no repayment events arise that are unmanageble...

[prokarya] 16/4/2024 10:05

It announces to buy back a max of 1 billion worth of debt today. It's good news and why stock price keeps dropping?

[supermarky] 16/4/2024 08:55

Made my day to see you here. Why are you here anyway? shorting bats?? if all so bad with UK markets there are so many better places for you to be.

[mcunliffe1] 15/4/2024 17:27

In post #8872 I predicted:

Many will no doubt state:

But, without this BB the share price would have been so much worse.

Thanks for proving me right Sst. :-)

[stevensupertrader] 15/4/2024 17:05

The way BATS is moving - 10.5% is coming .
Sub £23 with shares buyback - just think without shares buyback sun £21 . Unloved and unwanted

[mcunliffe1] 15/4/2024 12:18

anhar: I understand statistics, chance and randomness particularly in the unconnected events in respect of repeated coin tossing.

The fact remains, I see a 'pattern' whereby RR rises when the US market opens on many days.

It doesn't cause me to buy just before the open. I do note the occurrence even though I don't rely upon it or react to it.

[zicopele] 15/4/2024 12:06

At 14 year low today. Buying a few for my SIPP.

[lovewinshatelosses] 15/4/2024 12:06

Almost certainly lower, seeing as my buy order in the 2280 range triggered again :)
I am unaware of anything new that has arisen in the past couple of days that changes the investment thesis here. So, on the basis that I considered it a buy then, IMO it is even more so now sub 23 quid. Naturally time will tell and I will be looking to trim some of these if/hopefully when 25 quid returns here, as getting a bit heavy in this one now. GLA.

[car1pet] 15/4/2024 11:36

Any views on where its heading now?

[jubberjim] 15/4/2024 11:29

Porsche1945

Where have you been.

Does my heart good when you appear with your vitriol

But could you please try to inject some humour into your cant

Ta ever so be lucky

[anhar] 15/4/2024 11:24

McC: You enter a fair coin toss game after noticing that five heads have just come up in a row and bet on the next throw. What should be your view?

a Tails must now be extra likely.

b It's still an even chance of H or T.

The math says b as the game is random, but loads of people will go for a, allowing superstition, emotion, false pattern recognition and the like to cloud their judgement. Keep playing like that and over time you will lose even though sometimes you will win. The danger is that you allow the wins to convince yourself that you possess skill in spotting a pattern when it's just blind luck and there is in fact no real pattern.

[uncle_sam] 15/4/2024 11:16

Yep. Over the last 10 year period my UK portfolio is down 20%. Same time frame, similar sector breakdiwn, my US portfolio is up 225%. "Money goes where it 8s treated best."

[willoicc] 15/4/2024 11:04

What is the logic selling an income producer to buy back shares to reduce your own dividend from lower income?

As far as I can see the dividend only rose by 2% recently with inflation still above that.

[mcunliffe1] 15/4/2024 09:04

Not a vape though. The EM pulse will have knackered the mechanism.

[money4me] 15/4/2024 08:49

Yes, concern for the world ending might prompt more people to smoke so more income. Not much use in a nuclear apocalypse having money, but at least enjoy a final cigarette

[topazfrenzy] 15/4/2024 08:46

Buybacks reducing dividend payments and they are buying back cheaply so a good long term move for the company

The tobacco sector is perhaps the most hated sector out there with absurdly low valuations ... when defensive plays become a priority again then expect a sudden re-rate

In the meantime sit back and collect to divis

[mcunliffe1] 15/4/2024 08:23

Another way of looking at this monty may be:

A year ago they hadn't got the proceeds of the ITC sale. Hindsight is wonderful. Buy Backs are meant to support the share price This BB isn't supporting the BB.

Many will no doubt state:

But, without this BB the share price would have been so much worse.

Ask the guys at abrdn how ineffective BB's can be sometimes.

[laurence llewelyn binliner] 15/4/2024 08:16

+ already committed to the buyback through 2024/2025.. :o)

[montyhedge] 15/4/2024 07:56

They could have not timed it better, if they started this a year ago, would have paid around 2875p now 2320p that's a good saving 5 pound a share.

[m12rtn] 14/4/2024 21:48

It won't pause the buy back, but it might mean they cancel more share than they first thought because they may get them much cheaper next week with the current uncertainty I think.

[jubberjim] 14/4/2024 08:27

Think weekends events might pause the buyback ?

[hope1815] 13/4/2024 22:55

British American Tobacco -INTRINSIC VALUE Alpha Spread as an Example others are higher or slightly lower. This means as of 12 April 2024, the share price is £2307.00 with an Intrinsic Value Basis of £4947.79.

British American Tobacco is undervalued by 53%.

Dividend increase past 25/26 years Classed as Dividend King (Dividend Cover 1.65)

Operational Profit was £12,465 Billion in 2023 up 3.1%

Net Debt fell by £3,3 Billion in 2023

British American Tobacco introduces Buy Back of shares 2024/25 roughly Link on how they work from YouTube-





British American Tobacco reduces holdings in ITC India to 25.3%

ITC Hotels to float in October/November 2024, owning 17%. The sale to raise further equity for Debt payment and Future Buybacks.

Impairment on Business 27 Billion write down over 30 years added to balance sheet 2024 showing a loss.

New Product Lines showing a profit in 2023, Outlook's next trading update should show an upward trend.

Ongoing net debt reduction in 2024

Growth guidance in 3%-5% 2024/25

A basic outlook for the company's next trading update looking forward to. This should show new project lines increase in Revenue.

[plastow] 13/4/2024 21:10

The market don't like this buy back so hold on to your hats rudder less exercise in there eyes GLA ? let's wait and see