Imperial Brands Share Discussion Threads

[kiwi2007] 09/11/2020 23:10

tomleafs8 Nov '20 - 11:39 - 5631 of 5648
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The share price was £16.50 prior to the H1 2020 results announcement (19th May) in which the decision was made to rebase the dividend by 33%. The shares are now selling for £12 which is directly proportional to the amount the dividend was cut.

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and from 2016 ? The dividend was increased 50% over the next few years and yet the share price fell by over 50%..... so that appears to disproves your argument Tom.

The company needs to talk to the institutions to help discover what would encourage them to invest. I'm sure most of them would, like myself, prefer a stable or rising share price along with a sensible dividend. That probably means reducing debt at a faster faster pace than they have done in the past.

[creditcrunchies] 09/11/2020 19:22

OK I think it'll be on results on 17th November a bit later this year, fingers crossed

[creditcrunchies] 09/11/2020 19:07

In the first week of November 2018 and 2019 they announced the 3rd Qtr and Final dividend. Anybody know when this is likely to be announced this year?

[gary1966] 09/11/2020 16:05

Minerve,

My post was just off the top of my head but this is where I think I got the idea from. Demand and volume are two different things as are management expectations and an actual comparison.

Full Year Trading Update

The tobacco business has continued to perform well despite an uncertain and disrupted trading environment. We have experienced some COVID-related changes in consumer behaviour with increased overall demand against our expectations, as consumers appear to have allocated more of their spend to tobacco, as well as some demand shifts between different markets and channels. This has resulted in better than expected volumes, driven by improved volume trends in several key European markets and in the US. These positive trends have helped to offset relatively weaker market volumes in the duty free channel and in some traditional summer tourist destinations, where reduced travel has impacted demand. Overall, we expect tobacco net revenue to increase by around 1% at constant currency.

[minerve 2] 09/11/2020 15:47

Gary

No, they didn't say volumes were up due to COVID. Volumes were resilient despite COVID - different thing.

[gary1966] 09/11/2020 15:28

I am sure the company said that volumes were up due to COVID and home working and so you could argue that todays news is bad for IMB.

[spud] 09/11/2020 15:18

The irrationality of the Markets!

spud

[peddlers] 09/11/2020 12:40

Shorters destroyed this morning

[lendmeafiver] 08/11/2020 20:42

Buywell, ive always believed that those who have knowledge, don't predict.

[zztop] 08/11/2020 20:14

Old English proverb Never argue with a foolThey drag you down to their levelThen beat you with experience

[buywell3] 08/11/2020 20:05

A fiver goes nowhere today and buywell predicts their demise will soon come

lendmeafifty would perhaps be more apt for a year or two but

lendmeaton sort of carries more weight don't you think ?

buywell predicted a Biden victory see the BUY thread

buywell posted a few posts back re his problems in getting anything passed into law plus sorting Covid-19 and the health issues for Joe Public re insurance and Covid-19 pre-existing condition legal court wrangles now taking place in different USA states.

[lendmeafiver] 08/11/2020 18:14

In not into politics at all but the further left politics goes normally results in increased chances of Corporate tax rises, windfall taxes and erosion of personal responsibility and choice.

[irenekent] 08/11/2020 16:54

Wonder what effect a Biden victory will have on tobacco stocks. Any ideas?

[spud] 08/11/2020 11:56

It's a dividend yield stock not a growth stock. spud

[tomleafs] 08/11/2020 11:39

The share price was £16.50 prior to the H1 2020 results announcement (19th May) in which the decision was made to rebase the dividend by 33%. The shares are now selling for £12 which is directly proportional to the amount the dividend was cut. The market wants this to have a yield of 10%+, any further cuts will simply cause the price to adjust downwards to accommodate this. I hope the new bloke sees the madness in rushing to pay off debt costing the company 3% a year. Let's see what he has to say on Nov 17th.

[lonrho] 08/11/2020 11:24

Well it did when they reduced it from over £2 to £1.37 as was repeatedly warned on here in advance by Spud.

[kiwi2007] 08/11/2020 11:15

It's pretty obvious that the yield isn't supporting the share price. Reducing it and repaying debt can hardly make it go any lower.

[spud] 08/11/2020 10:44

If they want to reduce the share price, the easiest and quickest way is to slash the dividend.Simples!spud

[gaffer73] 08/11/2020 07:14

Care to post it?

[buywell3] 08/11/2020 07:12

Chart says otherwise
along with covid-19 cases now rising exponentially worldwide and the way smokers and vapors are more affected
Implications of Covid-19 being treated as an existing condition now are in USA courts

[gaffer73] 08/11/2020 06:51

They have made changes to reduce the debt by cutting the divi and selling the cigar business. Net debt only increased last period due to calculation changes and is currently 7x operating profit. With a 10% + divi they could cut it further to say 7% which would accelerate debt repayment but with revenue remaining steady it's not necessary.Considering the restrictions this year I think revenue will increase next year and this will be back to 1500p.

[kiwi2007] 08/11/2020 03:51

Unfortunately, in this case, he's correct. It's a dog. Many investment trusts, pension funds and other institutions won't touch it (even though they often hold BAT) , management's been awful, letting debt balloon to silly levels whilst they paid out huge amounts in dividends. As for their vaping products !! That's yet another failure!!

If they want taking seriously they need to slash the divi again and get that debt down to acceptable levels asp. (And dump some of the fat cats on the board / senior management).