Imperial Brands Share Discussion Threads

[eeza] 26/3/2020 11:07

BATS XD today fo 50p - and blue for 20p (effectively 70p blue).

IMB, however..........

[hernando2] 26/3/2020 09:36

I just posted it for info..and my view of how America works with regrade to lawyers

If you think it of no relevance just ignore it

[lendmeafiver] 26/3/2020 09:27

Appears to be a significant link with covid19 deaths and obesity/diabetes so should I also avoid any company involved with sugar, processed foods, fast foods and sugary soda drinks?

[lendmeafiver] 25/3/2020 22:11

Agree, new CEO will be a good reset for the business I think, along the lines of BATS more recent progress.

[brianbrain] 25/3/2020 22:06

Agree tobacco will be around for a very long time. Getting a decent foothold in NGP / cannabis will hopefully help mitigate any future risk of price rises struggling to offset volume declines. Be interesting to see what he decides one way or another...

[lendmeafiver] 25/3/2020 21:56

Yes I had read that, plus he is a marketing chap so will want to build brands, my suggestion above is what I would do but I’m just a miserable former accountant who would be happy to maximise profit whilst managing the declining cig sales which I personally think will be around for a lot longer than people think.

[brianbrain] 25/3/2020 21:30

When he got the job the new CEO said:

“I’m delighted to be joining Imperial as the next Chief Executive. I believe the business has a great future and I’m looking forward to working with the Group’s employees to maximise the opportunities that lie ahead and build a stronger, more sustainable business.”

Tobacco volumes are declining - NGP and cannabis are the future growth areas for all tobacco companies. if he wants to ensure a sustainable long term business like he said he will need some form of NGP. Just needs a decent strategy and careful marketing (which is his background) rather than the scattergun approach of the previous CEO.

[lendmeafiver] 25/3/2020 17:41

Hi Stefan, if you are reading this whilst on gardening leave it’s really simple:

Flog cigar Business
Flog NGP Business
Slash capex
Focus on manufacturing and selling cigarettes and Skruf taking costs out of the business
Reduce borrowing costs
Keep dividend at current level
Change the plc name to Imperial Tobacco
Take salary, watch the share price rise

[minerve 2] 25/3/2020 17:23

He'll just be another smart-suited chimp who goes through the motions and rewards himself millions as if he had invented tobacco. Very few directors and CEOs are worth what they are remunerated. Perhaps a handful in this country and a couple of handfuls in the US.

[irenekent] 25/3/2020 17:19

I hope the new CEO reads this thread. So many people giving free advice to him!

[danieldruff2] 25/3/2020 16:36

What the new CEO actually does will be of more importance, if he gets the strategy right there's a lot of upside from here

[spud] 25/3/2020 16:34

If the Company issued an RNS stating that the dividend was safe but frozen for the entirety of 2020, we'd have a price nearer to 20 quid imo!

Simples.

spud

[lendmeafiver] 25/3/2020 16:25

Agree on the RDSB comparable, we will have one of those days here soon when it jumps to 1550 I think.

[lendmeafiver] 25/3/2020 16:24

Given 65% of eps isn’t vastly different from the current dividend level the company would be better off from a PR point of view just freezing it at the current level, they can afford it after all especially given its borrowing costs will be falling currently.

[spud] 25/3/2020 15:52

I think we are seeing a RDSB situation here whereby everyone was questioning the low price/divi cut etc etc. Currently it has spun up accompanied by the wringing of hands and wails of : 'I wish I had bought more sub 10 quid' and all that old guff!

spud

[brianbrain] 25/3/2020 15:48

yeh still a substantial divy for holders and good for long term health of company - win/win

[dcarn] 25/3/2020 15:32

That sounds far better than my initial calculation.

I took the EPS figure from the ADVFN financial page of £1.06 and got 68.9p.

Further investigations of premlims from Nov 19 give adjusted EPS of £2.73 with 65% @ £1.77.

I could live with that.

[lendmeafiver] 25/3/2020 14:39

65% of EPS is circa £1-80, therefore around 14% yield.

[spud] 25/3/2020 13:27

Brown envelopes and strange handshakes spring to mind....spud

[brianbrain] 25/3/2020 13:27

I personally think new CEO will trim it. How much by, not a clue - perhaps go to the 65% of EPS payout ratio model adopted by BATS? I personally think it would be the right decision for the long term health of the business and would give him some breathing space to implement his new strategy and sort out NGP once and for all.

[catswhiskas] 25/3/2020 13:24

FFS has UBS cut IMB to £12 what the hell is all that about has everyone stopped smoking imb brands and are smoking bats instead

[stevenrevell] 25/3/2020 13:17

That may not cut the divi look a good buying price now

[brianbrain] 25/3/2020 13:12

Not sure the company would half in market cap on a divy cut. Halving would value it as 3 times profits! It seemed to boost VOD’s share price (at the time) when they cut the divy.

[spud] 25/3/2020 13:04

As has been stated numerous times, they don't need to cut the dividend! The share undervaluation is exaggerating the yield. Cutting the divi would half the share price imo & rebase it to the same yield again. spud