Imperial Brands Share Discussion Threads

[spud] 14/11/2021 18:37

Yep, borrow, buy and profit! It's (almost) a no brainer. spud

[jrphoenixw2] 14/11/2021 17:46

@DWD, is the tobacco sector, due to being categorised as non-ESG, a carry-trade in yield terms? IMB Current Yield = c9%, many can borrow funds for a darn sight less than that, certainly those with margin-trading access. Buy it and print the (9% - borrow cost), buoyed by market reports this week referring to the dividend at current levels having 'a low risk of cutting'.

[gary1966] 14/11/2021 09:49

dmore2,

You'll be pleased to hear I can move the decimal point two places to the left.:-)

[daneswooddynamo] 14/11/2021 08:42

Job Curtis is right, the current only marginal buyers of tobacco are the companies themselves and as soon as debt levels are down to lower end of target they will focus on implementing significant buyback programmes. As the equity pool starts to diminish there will be a scramble to secure exposure

[dmore2] 14/11/2021 07:08

hxxps://www.msn.com/en-gb/money/other/questor-british-tobacco-stocks-are-the-world-s-most-shunned-investments-so-buy-them/ar-AAQGgdn

[dmore2] 13/11/2021 01:40

gary seems to be the only guy with a calculator

[redbaron10] 12/11/2021 16:17

Nice run up to 16/11 dividend declaration day and 23/11 ex-div day hopefully

[spud] 12/11/2021 13:49

Yes, they had lowered prices on a brand(s). It was in an article about 4 weeks ago. spud

[p0pper] 12/11/2021 13:33

With price increases mentioned in that article didn't IMB announce they had reduced priced a little while ago??? I thought they had, anyone?

[marktime1231] 12/11/2021 12:40

Thanks spud.

We know broadly what to expect with the results and dividend eg modestly progressive. More interesting will be the confidence with which Bomhard can say his strategy to defend share in main markets is working. Especially interested to learn whether surplus cash will be diverted from debt reduction, which is in control, to share buybacks which is what analysts and institutional holders want. In the absence of a growth story what is the end game?

A major buyback is an obvious approach to take where shares are trading at less than half fair value, and I suspect such an announcement would restore the share price more significantly than modest progress in the dividend. Bomhard held the door open to this possibility at the last Q&A, but it is not his plan A.

Which is to continue to reduce debt at a steep rate eg by about one tenth every year, to eventually make IMB an irresistible target for a merger or take private but that will require someone with cojones and very deep pockets. Rumours of stake building by Ken Dart have so far not had much effect.

Either way with a 9% yield we are winners, but I share everyone's frustration having confidently expected IMB to step up through £18 this year. Being patient has its rewards too.

[scobak] 12/11/2021 12:26

Seems to be stuck in a price range rut of £15 - £16.
Hopefully it will shift when results and divi announced.

[spud] 12/11/2021 11:48

Imperial Brands, Full Year Results, Tuesday 16 November

Matt Britzman, Equity Analyst

“Imperial Brands [LON:IMB] expects to post operating profit growth in the low to mid-single figures next week, with market analysts hoping for a little higher. Imperial will be looking for price increases to offset the expected decline in cigarette volumes. The group’s Next Generation Products line-up is yet to turn a profit, and the groups been trialling new markets and strategies – we’ll be looking out for updates in this space. Imperial’s debt position will be watched closely. Last we heard, net debt to underlying cash profits stood around 2.6 times. With the group targeting 2-2.5 times by the end of 2022.”

spud

[spud] 12/11/2021 11:39

Or + 3% = 49.44p

spud

[gary1966] 12/11/2021 10:21

48p + 1% is only 48.48p

[trikytree] 12/11/2021 07:40

So about 50p?

[dmore2] 12/11/2021 00:33

The two interim dividends were increased by 1%, im not expecting this to change

[spud] 11/11/2021 22:36

I'll be positive and hazard a guess at a 3% increase. spud

[trikytree] 11/11/2021 19:59

Any thoughts on how much Nov 25th will be? Anyone got a Dividendmax subscription to look what their estimate is as they’re usually on the money?

[spud] 11/11/2021 15:44

Europe’s Most Undervalued Stocks Cars, tobacco, and a historically-troubled Italian defence company top the list of stocks currently trading at a discount in Europe.



spud

[dcarn] 02/11/2021 21:01

Nicked from the XLY board.

“Aux saw an increase to 15.6% market share of cannabis 2.0 products in Q3 2021. Powered by a 24.7% share of total Canadian vape market – the largest of any Canadian LP by a significant margin.”

[dmore2] 02/11/2021 18:34

hxxps://www.marketscreener.com/quote/stock/AUXLY-CANNABIS-GROUP-INC-56171599/news/Auxly-Strengthens-Board-of-Directors-with-Appointment-of-Murray-McGowan-36866837/

[chucko1] 01/11/2021 08:14

More REITs, as in RGL as suggested above.

e.g. AEWU, SREI, BREI, EPIC and also take a look at RECI (property lending) and other ITs such as SEQI, HICL and the now remarkable VSL.

Also check out SKYSHIP's "Commercial Property" thread which has postings on all the property REITs.

[neilyb675] 01/11/2021 07:48

BHP, NCYF, BATS, CEY, NESF, RGL, HFEL