British American Tobacco Share Discussion Threads

[philanderer] 01/5/2018 09:28

Another drop today and the £ is off again ???

cable 1.3725.

[dbensimon] 30/4/2018 14:38

Here we go again below 40

[this_time_its_different] 27/4/2018 12:36

BATS should slowly move up, the move from £40 to £36 was more panic driven if anything. I see BATS easily moving up to £45, the real resistance is after £50 but that is a long way away in the future.

[unnavailable] 27/4/2018 10:54

Nice to see this touching above £40. To Finish above for the day would be huge.Then hopefully march on back to £43.

[philanderer] 25/4/2018 17:56

British American Tobacco was also on the front foot despite saying it faced currency "headwind" this year that will hit profits. At the company’s annual general meeting, chairman Richard Burrows said trading was challenging but the group was on track for good earnings growth excluding currency swings.

[andrewbaker] 25/4/2018 10:44

I still can't credit the price: anywhere below £50 is a good price. At current levels, I can only say thank you, and buy more; especially as other areas one can usually be confident about are so volatile. (Though tech and biotech are good long term buys, who knows where their bottom is, as so many don't even make a profit yet, yet alone pay a dividend.) So ... BATS, I'm loading up more of you (plus looking at the bio sector for lung etc cancer cure bets; so is that called playing both ends?)

[this_time_its_different] 24/4/2018 15:31

It was a buying opportunity below £45, below £40 is insane right now. I would be loading up on BATS left right and centre. 5.2% divi which will grow on top of a margin of safety from £55 to £37.

[this_time_its_different] 24/4/2018 12:09

Beyond oversold, if you hold for 3-4 years at this rate you will get 20% in dividends easily. If the stock goes under £33, there are more serious problems out there.

[dbensimon] 24/4/2018 08:07

Well oversold

[dbensimon] 24/4/2018 08:07

I think at this level it's buying opportunities

[mnomis] 23/4/2018 15:59

As of Friday, I am the proud (or maybe not so proud) owner of a few of these shares. Seems like a good entry point, but time will tell. Dividend and valuation seem pretty reasonable.

[philanderer] 23/4/2018 13:47

Pound sterling falls to five week low against US dollar as GDP and Brexit pressures increase

[philanderer] 23/4/2018 12:00

'E-cigarette firm cashes in on vaping boom with stock market listing'

[this_time_its_different] 20/4/2018 19:08

Vape has an incredible amount of flavours, clearly Big Tobacco is targeting kids here. Ah well, it's safer than smoking sticks.

[essentialinvestor] 20/4/2018 12:01

Very easy to do some rudimentary research - buy vape kits, in an Amazon search,
I was surprised by the number of companies offering vape products.

[this_time_its_different] 20/4/2018 11:38

Big Tobacco knew this, they had to prepare for the general transition to vape. The only place where sticks would outsell vape in 10-15 years time will be in the developing world. FDA will most likely ditch the nicotine reduction in hope that big tobacco can promote vape products over traditional sticks. Vaping is far better for the health than sticks.

[cryptotrade] 20/4/2018 11:36

They also have Reynolds.

Going to need a few days of uptrend before I can see a solid buy.

[essentialinvestor] 20/4/2018 11:25

With by Japan Tobacco, they share revenue from memory.

Jule is killing it atm Stateside, that's why I mentioned earlier on the IMB
board Blu need a higher nicotine content product, as an option.

Just look at the Jule nicotine content to see the difference.

[chiragmahe] 20/4/2018 11:22

Juul is doing very well in USA. They are bigger than big tobacco in vape

[essentialinvestor] 20/4/2018 11:15

May have, there is one factor to be mindful of,
you don't need to be a tobacco company to launch a vape product.
The barriers to entry are arguably a lot lower than in the combustible space.
That's what has really changed in the sector.

[this_time_its_different] 20/4/2018 11:12

Like I said, it was the perfect storm, hence the immense drop. I feel sorry for whoever got in above £50 thinking this was a defensive stock that wouldn't drop like stocks did in 2008. We have gone through the tobacco version of 2008 essentially, only calm heads with prevail. The DJIA moved from 14,000 to 6,500 before it found a bottom. I believe we have a bottom at £36.

[andrewbaker] 20/4/2018 10:46

Yes, it's crazy; but then I've been saying the world has gone crazy for years now. BATS is dropping because of so many reasons, some listed in posts above, but none of them are about the viability of the business and its profits and ability to pay covered dividends with capital growth in the share price too (when a realistic value returns to the share price, of course). I've broken my rule(s) about buying here (percentage of one holding, falling knife, etc ...), and bought more every time the price dropped again; and I've just bought more.

I don't smoke, don't like smoking, and think those who do need help to stop; but I'm not about to go on a pilgrimage, soap box or other moralistic campaign: if people want to sell BATS at the current price, and want to sell BATS to me at the current price, yes please: I'm here.

Sometimes a crazy world can be rewarding.

[this_time_its_different] 20/4/2018 10:30

They are falling because they are falling. The market is a pendulum that forever swings between unsustainable optimism and unwarranted pessimism. Right now we have extreme pessimism driving the tobacco sector. You have to remember several things contributed to the fall, firstly the strengthening of sterling, secondly the average results from philip morris, thirdly fda nicotine reduction threats, fourthly general panic selling in the market since a lot of BATS holders are not used to these kind of drops. It is a defensive stock after all...or should I say was. It is the perfect storm, I really can't see the stock going lower. The yield is already at a very attractive level (above 5%) with 10% growth projected in the medium term for the yield.

[cryptotrade] 20/4/2018 10:03

Hi steeple,

I get your point.

At this level the yield is 6% full dividend. I have not checked when they are due? yet.

Why have they been falling. They are constantly innovating, driving costs down and shaping the business. The drop is large.