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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Imperial Brands Plc | IMB | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 1,819.00 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 1,819.00 |
| Industry Sector |
|---|
| TOBACCO |
| Top Posts |
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Posted at 10/4/2024 13:58 by fenners66 So then you are saying whilst holding up Buffett to be an amazing investor ...that he got it totally wrong to invest in the US airline industry at all , any time as its not a good long term business. Not just poor timing. So he makes mistakes - very very big ones? Why then do many quote as a reason for buybacks - its good enough for Buffett ? Anyway I don't think the merits or demerits of buybacks have anything to do with it. The institutions may not dictate that much to the BODs but one thing they do is share BB since they hold the cards they get what they want. |
Posted at 10/4/2024 12:54 by louis brandeis Woodford made some mistakes that cost him. One of his mistakes was to assume retail investors understood what 'patient capital' means. Obviously the council involved didn't understand this word 'patient' and neither understood the mechanisms of an investment trust. Councils shouldn't be investing in such things. Lots of things were wrong around Woodford. All very depressing. Don't even mention Hargreaves Lansdown |
Posted at 10/4/2024 12:47 by louis brandeis fenners1. I don't understand why you think it is different for Buffett. He is an ordinary shareholder the same as all the other Berkshire holders: It is a publicly listed company. He owns 16% and is the chairman. It isn't a private company. As far as airlines go the issues of his failure investing in airlines isn't to do with the buybacks it is more to do with airlines fundamentally being bad investments due to their ability to suck up capital for new aircraft (purchase or lease) whilst having zero competitive advantage and having to price like commodities. 2. OK, so make it obvious that the coupon rate is pretax. What is obvious is that sustained buybacks executed correctly overtime work for shareholder value. Spot decisions would include many variables some of which we are not privy to. So it is difficult for us to say whether paying down that debt was the obvious answer. If it was I'm sure it would have been done. You have to have some faith in the CEO and CFO, if you don't then sell your share. 3. If you payback the debt the problem seemingly disappears only until you might need to increase debt financing again. Don't forget credit investors have a market too. 4. Intrinsic value has EVERYTHING to do with buybacks. If shareholders are willing to sell to the business something that is worth £1 for 50p the business should buyback as many it can afford to. In this scenario you are increasing shareholder value for those shareholders that remain. The opposite to this is if you are executing buybacks at a share price of £1 when they are only really worth 50p: in this scenario you are destroying shareholder value. 5. I think you raise a good point which is what I refer to in that the business has to be a good one and on a sound financial basis to begin with in order for buybacks to work and also to be taken seriously by investors that know what they are doing. I think you do have an argument to pay some more debt down but there is an opportunity cost with buybacks and future interest rates are (were?) expected to fall. |
Posted at 10/4/2024 12:37 by fenners66 As for just how much liquidity matters more to institutions look at Woodford.He made an absolute fortune for himself playing with other peoples money. It really did not matter if their investments went up or down he got a % . Could there be a more damning indictment of that then the suspension of his fund so no one can withdraw and he was still taking a % out ?! There he is making a fortune - until it all falls apart after an institution wants to pull its cash out and there is no liquidity. All the other fund managers who had not learned by then suddenly woke up - liquidity is key and stuff the arguments of the investors |
Posted at 10/4/2024 10:54 by louis brandeis The issue of share buybacks versus debt repayment is not a no-brainer decision that fenners would like you to believe. Before I go on, just remember the greatest investor of all time, one of the world's richest men, Buffett, is an advocate of share buybacks.Remember, those headline coupon rates are paid with the added benefit of being tax deductible so are paid out of PRE-TAX EARNINGS rather than earnings. Capital repayments don't have such a benefit. So if you are comparing against buybacks you can't use the headline coupon rates for comparison. Also, buybacks should be done when the well-respected and traditional methods of calculating intrinsic value in a business indicate the shares are cheap with respect to intrinsic value. No point paying back a pre-tax coupon of circa 8% now to find out a missed opportunity for buybacks if the share price then rises above intrinsic value when you next have the opportunity. In other words: if you have the money most debt can be paid back at anytime whereas purchasing shares at below intrinsic value only arise whenever there is market opportunity. The other issue that might cloud the water is the ESG constraints and restrictions now being placed on businesses by prospective creditors. That 8% coupon and its replacement might come from part of the credit market which doesn't give a toss about ESG. Lower rates of credit might come with very restrictive scopes of operation or ESG targets attached that Imperial Brands might not want to entertain so easily. |
Posted at 10/4/2024 10:21 by philanderer Imperial Brands still a value stock, says HargreavesTobacco giant Imperial Brands (IMB) is growing, making progress on next-generation products and there is no imminent threat to its dividend, says Hargreaves Lansdown. The Citywire Elite Companies AAA-rated stock kept half and full-year guidance intact, with low- and mid-single-digit growth in underlying operating profit expected. The shares softened 0.9% to £17.17 on Tuesday, increasing losses to 9.4% over the last 12 months. Analyst Derren Nathan said the group is ‘eking out further growth, by imposing further price increases on smokers’, showing it is ‘getting the balance right against the backdrop of a declining market, but there are still volume pressures in certain markets’. ‘Looking to the future, the group is starting to make progress with its next-generation products, such as vapes and heated tobacco,’ Nathan said. ‘Overall, however, this statement should provide some reassurance to investors who may be considering Imperial’s value credentials.’ Nathan said there is ‘no imminent threat to the high single-digit dividend yield, and the continued strength in cash generation could pave the way for further share buybacks once the remaining £500m of the current program is completed’. citywire.com |
Posted at 01/3/2024 19:51 by boomdaboom @marktime1231 BATS net debt is 2.7x vs 1.9x for IMB....doesn't seem like a huge difference to me. BATS have stated their target range to be between 2-3x and should commence buybacks very soon. The reason IMB has a lower level of net debt is because they slashed the dividend a few years back, BATS has never cut the dividend, and now yields over 10% which is very well covered. In addition, BATS have announced their intention to sell part of their ITC stake soon, which will further reduce net debt.@huckers coincidentally I also bought a large BATS holding a few years back for around 2,500p and sold around the same time as you for around 3,500p. In light of recent weakness I have recently re-purchased my position at around 2350p and will add more if it continues to fall in the absence of any negative developments. Both BATS and IMB seem to have taken a hit since the rumours of a new tax on vaping in the budget, which if this is the reason, seems quite absurd as this will have a negligible impact on the earnings of either company. A lot of UK investors seem to think the UK is the centre of the universe when in reality the UK represents a relatively small proportion of total revenues. IMB and BATS are strong buys in my opinion although I would expect BATS to outperform in the long run due to its stronger position in reduced risk products and greater geographical diversification. |
Posted at 01/3/2024 18:09 by marktime1231 No I have never been tempted by BAT, the debt here was a burden but BAT is still carrying a mountain. Until they have debt down to the level where they can reallocate capital eg buybacks I will stick with IMB.A pure BAB merger on par terms would not excite the share price of either, except for the potential synergies eg cost savings. A pe-orchestrated take private and combination with cash which closes the valuation discount, or BAT (or?) swallowing IMB with a part cash deal would give us the payday. A $25B offer to delist IMB when it is earning $4B and debt down to around $8B is not a huge ask, and there may be opportunities to make it even more tasty. Big investors building up stakes clearly have this end game in mind, consolidation is inevitable, it is a matter of years but how many? |
Posted at 27/2/2024 12:50 by philanderer Big tobacco firms Imperial and BAT fall on vape tax planShares in tobacco giants British American Tobacco PLC (LSE:BATS) and Imperial Brands PLC (LSE:IMB) fell on news that vaping and cigarettes could be hit with new taxes in the UK. Prime minister Rishi Sunak and chancellor Jeremy Hunt are mulling introducing a new tax on vapes at next Wednesday's Budget, according to media reports. Currently vaping products are subject to VAT but not the same levy as is applied to cigarettes. Tobacco duty could also increase at the Budget, to ensure that vaping remains cheaper, reported the Times, which first broke the story. Last month, plans were announced for UK-wide restrictions on disposable vapes, to tackle the rise in youth vaping. Imperial Brands, which owns the Blu vape brand and tobacco brands including Golden Virginia and Richmond, shares fell 4.3% while BAT, which owns Vuse vaping brand and Rothmans and Lucky Strikes, was down only 0.6%. "Although the industry is jostling for position in the vaping market, given the volumes declines in tobacco, these products are still a relatively small part of the picture," said market analyst Susannah Streeter at HL. "Investors had also been expecting greater regulation in the sector, so a potential increase in tax isn’t a wild surprise and given they are global companies a change in UK fiscal policy won't move the dial too much." proactiveinvestors.c |
Posted at 22/11/2023 16:31 by jrphoenixw2 Telegraph/Questor yesterday...'Update: Imperial Brands Shares in Imperial Brands are busy doing nothing in many ways – they trade no higher than they did 14 years ago – but the company keeps churning out the dividends and hence could well remain a staple for income investors. The fat dividend yield of about 8pc and lowly valuation – the forecast price-to-earnings ratio is around seven – suggest that the market remains concerned about the long-term future of smoking as regulatory pressure and health campaigns continue to weigh on volumes. Nevertheless, the latest full-year results, released last week, show that the FTSE 100 company remains highly profitable and cash generative as efficiency drives and pricing power continue to offset the relentless decline in the number of cigarettes sold. That pricing power comes from the company’s array of key brands, which include JPS, Davidoff and Gauloises. Pricing power is always valuable but is all the more so when inflation is high and businesses face pressure from rising costs, because it helps to protect lofty profit margins, which in turn support the cash flow that ultimately funds dividends. The dividend cut of 2020 is now fading from memory as Imperial increases its dividends for the third time in a row and confirms plans, first mentioned alongside October’s trading update, for a new £1.1bn buyback – an increase on the £1bn bought back in the financial year to September. Add the two together and, based on analysts’ forecasts of a further small increase in the dividend for the year to September 2024, Imperial is on course to return the equivalent of nearly 15pc of its market value to shareholders in cash. As it enters the fourth year of chief executive Stefan Bomhard’s five-year turnaround plan, Imperial is nevertheless having to work hard. Its medium-term plan is to grow sales and operating profits at a mid-single-digit percentage rate, although in the 2024 financial year Bomhard expects low-single-digit sales growth and a mid-single-digit profit increase, with the bulk of the earnings improvement expected to take place in the second half of the year. That sort of forecast tends to make investors nervous, as it suggests that more than a few things need to go right towards the end of the year for forecasts to be met. But again, the shares already trade on a lowly valuation and offer a plump yield to reflect this risk. Imperial will have income attractions for many investors. Hold. Questor says: hold Ticker: IMB Share price at close: £18.48 |
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