Imperial Brands Share Discussion Threads

[medieval blacksmith] 09/10/2021 12:13

I think they have cut the dividend enough already. The dividend is sustainable, quite easily ATM, and by a large margin. That implies that it is the share price that is artificially low rather than the dividend yield being artificially high. I think investors have to get used to the fact that tobacco companies will continue to trade below intrinsic value until the share pool is reduced. Because of the potential for the cost of debt to increase over the next decade it is prudent to have debt low and credit ratings the best they can be. Particularly for a company with little top line growth. It also makes sense to not reduce the debt to insignificant amounts because returns on equity will fall, you may not make the best use of tax incentives and you leave the company open to a potential buy out based on increasing debt. This is seen by the market as an income stock and so a good dividend yield is part of its well understood modus operandi. If you want pure, none dividend growth stocks go and buy them, there are plenty of them around , but you will end up paying well over intrinsic value for them.

To suggest some of us need to plan our lives better is ridiculous. You can do all the planning you like but nobody plans for a .com boom/bust, world credit crisis, European banking crisis, climate change crisis, central bank pumping over decades, and a pandemic to all occur within a two decade period. If you are that type of person who does plan for all these I would expect you to be working on your nuclear bunker in your back garden this afternoon.

Investing has been quite easy for many over the last decade or so for those who cannot, or do not, consider risk and don’t involve themselves in business valuation. They will eventually find out the errors of their ways when the music stops and they find themselves without a chair.

[sumday] 09/10/2021 11:16

According to ADVFN financials ROE on IMB is 30.69 per cent but only 10.21 percent on BATS. Are these figures pretty accurate and if so why the significant difference?

[acsatix] 09/10/2021 10:09

@those planning on living on unsustainable divis: plan your life better.

[spud] 09/10/2021 09:29

Many people rely on silly dividends to live (myself included). Maybe engage brain before spouting tripe!spud

[acsatix] 09/10/2021 09:12

@spud oh really ? Anyhow as usual they will retire shares when they will have to pay very dearly for that. That is called ridiculous.

The shareholders would reap a disproportionate advantage in capital gains rather than silly dividends… and this would not affect any ongoing debt retirement plan. But of course it seems no one takes a long view on tobacco shares… that’s what it is. I like my divis but it is by far better if capital was better allocated than it is now. Share price is not at all helped by the current allocation.

[spud] 09/10/2021 08:59

What a ridiculous comment acsatix. spud

[acsatix] 09/10/2021 08:49

Oh well it is called capital allocation. It is silly to retire cheap debt that you can offset interests of against taxable income and then pay 9% or more divi… idiotic I would say

[munin] 08/10/2021 20:56

Acsatix.......bonkers

[marktime1231] 08/10/2021 17:59

Now steady on, no need to cut the dividend which is well covered now! Plenty of surplus cash to continue to reduce debt or to start buybacks. Bomhard wants to get debt down further (which would make IMB a more attractive target) but corporate analysts are already pushing for a buyback, which kind of makes sense while the shares are trading at such a deep discount. My feeling is that if the new strategy stops the rot, volumes hold up in core markets with prices/revenues slightly improving then Bomhard will turn to buybacks pretty soon. He will not want or need to cut the dividend again, his reputation and the share price would get hammered. A bit of action in novel areas is icing on the cake to excite punters who do not understand value and demand a bit of growth from somewhere.

[acsatix] 08/10/2021 17:25

Personally I see no reason why they do not cut the divi further and allocate the saved money to buyback instead… no brainier…

[dartboard1] 08/10/2021 15:44

Not material at this stage, although would add a bit of excitement to the releases... I think management want to show that they are focused on the core business and are going back to basics... ensure stick volumes and price don't decline and bring down debt

[rhubarbcrumble] 08/10/2021 08:15

Thanks for that info.

Not something that is highlighted, but I would have thought worthy of mention if significant in cash terms.

[dmore2] 07/10/2021 19:02

IMB has a chunk of both
oxford cannabinoid technologies and Auxly Cannabis Group

[krowelet] 07/10/2021 18:11

rhubarb, they have a holding in octp who listed a few months ago.

[marktime1231] 07/10/2021 16:57

Added a few more today running low on cash so step up please

[spud] 06/10/2021 21:48

You are correct. spud

[rhubarbcrumble] 06/10/2021 21:00

Am I right in thinking that IMB were buying into cannabis production, or have I misled myself?

[creditcrunchies] 06/10/2021 17:46

as usual marked it down for meeting expectations, the market just doesn't like tobacco

[medieval blacksmith] 06/10/2021 16:49

US oil inventories have risen unexpectedly, which could further cool some of the frenzy in the energy market.


See, all a load of cack.

[marktime1231] 06/10/2021 16:21

Added some in the 1480's. Hope Bomhard has a tough hide, one heck of a beating for announcing everything is going to plan.

[kipper999] 06/10/2021 15:07

Next top up point for me is 1,475
IF the divi remains constant, that gives a yield of 9.3%

[spud] 06/10/2021 14:40

Yup, as suspected, the Market has marked this down due to increased expenditure on quilted rolls in the IMB staff toilets....

spud

[philanderer] 06/10/2021 14:11

Snus a 'big big problem' in football

[topazfrenzy] 06/10/2021 14:07

Anyway, grabbed another 150 shares, thanks for the cheapo entry