Imperial Brands Share Discussion Threads

[dsct] 31/10/2021 19:08

Hello ADVFN'ers

Having recently started investing in High Yield shares for a SIPP, this company is one of the investments.

The surprise (to me) was the annual income amount from these, which will be re-invested - into the same / similar.

So far, invested equally in these 10 companies - Hopefully fairly high yield and also diverse:
DEC DLG EVR IMB LGEN MNG POLY PSN RIO VOD

Investing yields (monthly) from these into ULVR and GSK to build up to the same percentage stake in all 12 holdings.

Rump holdings from before this strategy are : AJB, GRG, PTEC and SHOE - These may be sold to supplement her HY strategy.

Main reasons for posting - apologies for the repeated post on the boards of these main holdings.

1) I read these individual company boards, and would like to thank posters for their insights, thoughts and news.

2) Does this make sense ? - Are there any major problems regarding this scenario ?

3) With a 5-6 figure portfolio, is this putting too many eggs in one basket ? 10-12 shares.

4) Any HY shares missing, not in sectors covered ? - Would prefer not to diverge into non UK companies, unless there's a valid reason.

5) Is there a HY ADVFN thread that may be useful to read ? I used to enjoy The Fool HYP board, and do read quite a lot of investment HY articles.

6) Usually investing in smaller, more speculative companies, I find these large company accounts much more difficult to read/analyse, so leaving it to the yield aspect (mainly).

7) I am also starting to put together a 'fun' yield portfolio, from which I aim to obtain a daily dividend, but that's an entirely different subject ! lol

Thank you all, for your interesting and valuable posts, and for any suggestions I can research.

[dmore2] 31/10/2021 12:21

Lots of growth

[redbaron10] 30/10/2021 15:15

Well the perceived wisdom is to go for commodity stocks when inflation is rising so good luck in the mining space kipper.I've got gold miners, GLEN, AAL and SLP.That's enough miners to be going on with for me.Can't beat a nice Manx kipper with lashings of melted salted butter on it for brekkie by the way.You like eating your namesake?

[kipper999] 30/10/2021 08:45

Nice post Red,
Yes, been at this since buying some Hanson in 1986(?) Done ok over the years i suppose.
When Covid struck & hit the entire market i went into RDSB & BP (among others). Brent shortly went to $10 & the world was going to end.

Now i see the mining sector the same way. Their commodity has taken a nosedive like oil did.
Plus the like of BHP, RIO, Vale pay good dividends.
China will come back to wanting iron ore, copper etc &, as you say, the US wants to spend their way out of this.
Holding BHP @ 1,910. Watching Vale, Rio, Ferrexpo for a possible bottom.

Sorry to be off IMB

Kipper

[redbaron10] 29/10/2021 22:12

kipper999 I first started with a scatter-gun approach to individual share buying.Have a diversified portfolio they advise, to spread your risk and drip feed your investments.Through twenty years of experience now,i've learnt many valuable lessons.I made big bucks(well what i considered big bucks back then) when Walmart bought Asda back just before the millennium.I made the classic mistake of thinking this investing lark is easy and then promptly lost my profit and then some when Marconi, thanks to Lord Simpson amongst others,went under in the dotcom bubble.I've wanted the House of Lords abolished ever since!!If you sell at a profit as you've done,you've done well.That is the name of the game,making money make more money for oneself.I now just seek good dividend paying stocks and accumulate when i have the funds, and when the opportunity arises.I've bought a couple of hundred RDSB at a time all through the pandemic and now hope the proceeds of the $7.5bn sale of their Permian basin assets will be returned to shareholders...but RDSB do like their share buy backs unfortunately.Jam tomorrow hopefully.Rio and some other miners paid some juicy dividends this year, but with commodities it can be all or nothing.China's growth story is fundamental to the miners' success in the absence of Trump's forgotten infrastructure spending bill and Biden's revised infrastructure bill.There's talk of trillions of dollars spending on infrastructure, but it never seems to materialise.

[kipper999] 29/10/2021 16:28

Hello Red,
sold out a little early the other week on RDSB.I took 1,641p.
Had an average of 998p, so ok with that. I never seem to get out right at the top for some reason....lol.

Personally, i'm looking at the mining sector for something cheap.....

....or here

[redbaron10] 29/10/2021 14:47

My buy order didn't trigger at 1540, it got to 1540.5.It's end of the month now so will see how the share price acts Monday.I'm looking at the RDSB share price pull back as well for an opportunity to add.Bitcoin is poisoning my PM investments in gold miners so i see better returns elsewhere now.

[kipper999] 29/10/2021 14:23

The other week when it dropped I had a 1,475 buy order.
Expired as didn't get there, but yes sub £15 a bonus Mark

[marktime1231] 29/10/2021 14:03

Anything in the 14s would be irresistible

[kipper999] 29/10/2021 13:58

Anyone else looking to buy into these? Got out other day with half my holding @1,584.6p as wanted to lock in some profit.
1,540 as i type. I think results in 12 trading day's will be good. With XD shortly after on 25 Nov.
So am thinking to buy back in with a view to selling on the run up to 48p XD day.
Perhaps 1,500/1,520

Anyone else considering likewise?

[marktime1231] 29/10/2021 13:53

A lobby group trying to discourage investment in tobacco in the news today, apparently a couple of years ago NEST the government administrator of Auto-Enrolment pensions decided to blacklist all tobacco - not even interested in next gen products - because tobacco is bad for you etc. On the same basis NEST is out of coal. But remains in oil (and gas), because there is a case for oil in transition etc blah blah. The lobby movement hoping that if this idea gains momentum the listed tobacco sector will become zombie companies - actually we know that they will be taken private and milk the income to leverage increased borrowing. It will make no difference to smoking, but if you don't want to invest in tobacco that is fine with me. Meanwhile downward pressure on the share price persists ahead of what we hope will be good results, very keen to hear about debt reduction vs buybacks, followed by the larger quarterly dividends ... and a surge in sp?

[professor john koestler] 26/10/2021 15:26

Taken from a PMI slide from their Q3 results...


Continued Positive Regulatory Developments Recognizing
Harm Reduction Potential of RRPs

• Switzerland: On October 1st, the Swiss Parliament adopted a new Federal Law on Tobacco
Products and e-cigarettes, foreseen to enter into force by Q1 2023:
⎼ Dedicated product categories for non-combustible products such as HTPs, e-cigarettes and oral tobacco/snus
⎼ Non-combustible products have textual smokeless Health Warnings versus graphic health warnings for
cigarettes

• New Zealand: August publication of regulations for smoke free products, following the passage of
the Smoke-Free Environment (Vaping) Act 2020:
⎼ Recognizing that heated tobacco products are smokeless and have the potential to reduce harm, branded
packaging for HTPs can now be re-introduced with a 30% text warning specific for non-combustible products

• Egypt: Smoke-free products clearly differentiated from combustible cigarettes in both fiscal and
regulatory treatment

We continue to support regulatory and fiscal frameworks which recognize the substantial
risk reduction potential of non-combusted alternatives compared with combusted tobacco

[professor john koestler] 26/10/2021 13:09

From Essentra Plc trading update....

I wonder if this involves IMB? (➡️
1013;️)




The Filters division had another positive quarter, with Q3 2021 revenue growth of 2.8% (+5.0% vs. Q3 2019), mainly driven by higher volumes from outsourcing contracts, in line with expectations. As expected, the rate of growth in Q3 has moderated as the comparatives have become tougher.



The division made further progress with its 'game changers'. The China JV has made a positive start with volumes increasing each month and it has participated in a number of local supply tenders with other tobacco companies under the State Tobacco Monopoly Administration (STMA). Our range of proprietary eco-products continue to attract increased interest and the Essentra innovation team remains focused on delivering new products to market. ➡️ During the quarter, and in collaboration with a large MNC, trials have been launched into four European markets using non-plastic biodegradable filters. ⬅️ We are also working with another MNC to launch a new product in Q1 2022. We expect Q4 growth in Filters to accelerate from the levels seen in Q3, driven by the China JV and further outsourcing wins.

[redbaron10] 26/10/2021 11:31

Hopefully UK budget day will knock these down disproportionately, as sometimes happens, overacting to the extra sin taxes invariably put on by the Chancellor,especially on UK cigarettes.Below 1540p i've got some more funds to invest, with a nearly £1 dividend payable over the next four months or so.Drip,drip feed.

[philanderer] 26/10/2021 00:27

It's the usual "if my auntie was my uncle" type article.

Contains 4 'mights', 1 'could' and 1 'potentially'


;-D

[dosser50] 25/10/2021 16:55

Motley fool ice recommendation today...

Imperial Brands

Imperial Brands is the world’s fourth-largest tobacco company by market share.

Why buy?

New management focusing on sensible investments and cash returns.
Margins and cash generation remain enviable.
Unloved and out of favour with wider market.
There’s no getting away from the fact that, while margins and cash flows remain enviable, some investors will never want to benefit from them. This might result in a valuation discrepancy, in my view. The 8.7% dividend yield is covered 1.8x by earnings, which perhaps reflects the market’s pessimism, but could also offer a rare opportunity for Ice-style investors looking for a high yield that might not be at risk of a future dividend cut.

While the valuation might not re-rate significantly on the back of improved investor sentiment (some buyers understandably won’t ever own the shares), it might still deliver superior total returns if organic growth improves and cash flow continues to support a healthy dividend payout ratio. Meanwhile, the company’s strengthening balance sheet and prodigious cash generation afford the flexibility for buybacks, potentially putting a floor on the current valuation.

[dmore2] 22/10/2021 19:03

Does'nt seem to bother ken Dart

[marktime1231] 22/10/2021 12:46

Thanks for those. On the one hand tobacco has 20 years to enjoy price growth more than compensating for volume decline, but despite being a "special values" fund noting that IMB is the cheapest in the sector etc he says he has rebalanced to favour other manufacturers where there might be a better growth story in next gen products.

Aaaaaaaaaaagh! Even managers whose job is to appreciate value can't get past an obsession with growth. That is why IMB, the whole of the UK, is so cheap.

[spud] 22/10/2021 11:58

Deadly Tobacco: Why did Alex Wright cut Imperial Brands?



spud

[spud] 22/10/2021 11:55

Link amendment



spud

[dmore2] 17/10/2021 23:35

hxxps://www.morningstar.ca/ca/news/215521/why-is-imperial-brands-so-cheap.aspx#

[pugugly] 16/10/2021 12:55

redbaron10- Totally agree with you re property - Only downside is difficult to divest in a hurry and as fixed at risk of icreased taxation - Council Tax - Wealth tax etc

As for most fund mangers view id “Give us your money and we will invest it for you and only charge you some 1%-2% pa plus safe custody fees of about 0.5%, but no guarantee that you will get back more – inflation adjusted after charges – than you put in - maye less." Patient capital!! Ha Ha.

[redbaron10] 16/10/2021 09:03

I don't think the UK population embraces the idea of a share owning democracy.We don't have that capitalist culture imho.Look at the lamentable coverage business and investment has in this country in our media.I appreciate there is legislation that doesn't allow views,opinions and the open promotion of businesses and companies in programmes here, but the US has CNBC business and Bloomberg and almost a running commentary on their stock market and prices.Their population is informed and educated in such matters.This side of the pond the City of London and the markets are viewed as the domain of professional investment funds and their managers.Most here, apart from handing over pension contributions for long term investing,leave their money to Hargreaves Lansdown and other investment businesses to manage their money for them.Individual stock picking by individuals is not commom place imho.Also there is the long standing issue of Gordon Brown damaging the private pension industry in the UK when he was chancellor taxing dividend returns for pension funds.There became an incentive to invest in housing stock to get a better return on investment.House prices have been rising pretty much continually as more people poured money into this asset class to help with their retirement fund/income.Lack of investment flows into stocks and equities has left many share prices undervalued in the FTSE.Just my theory on why vaiue shares and undervalued stocks don't appear to get recognised.Then there is the relatively recent ESG investment criteria aspect to funds not acquiring tobacco stocks which is another contributory factor.Hey ho.We can recognise a 9% dividend yield when we see one.

[salver2] 14/10/2021 21:10

It’s weird how most British people are unable to see how undervalued some of their shares are - Mr Dart can see it thought!