Imperial Brands Share Discussion Threads

[spud] 17/11/2021 13:22

Mark. Eloquently put. 1. But do you know how many billions IMB spent buying back in its last program? 2. Do you know the share price at commencement of that program?3. Do you know the share price once those billions had been spent? spud

[marktime1231] 17/11/2021 13:16

A moral stance against debt then, because the financial argument is self defeating. If you can borrow £10B at 3% and make 15% margin on those funds ....

A reasonable amount of leverage is the basis of capitalism. Without cheap debt there would be no business, we would have no homes etc etc. Not just tax efficient, but fundamentally the way to make money.

If you don't use your opportunity to borrow someone else will (buy you).

Why do you not understand that a buyback programme automatically progresses the dividend and is a permanent benefit. Yes it is an easy option and does not require imagination ... eg the benefit argument is obvious ... so why is that a bad thing?

Why do you want to progress a 9% dividend any faster?

If you do not believe that IMB is hugely under-valued, the shares are stupidly cheap, then why are you here?

If shares are stupidly cheap it would be stupid not to buy them (back).

In a low interest scenario there is no better way for IMB to spend its surplus cash. A net debt of 2-2.5 x EBITDA is very low even for a company with no assets operating in a declining market. It is not a black-and-white decision between debt and no debt, there is optimal debt.

What acquisition opportunities? Investing for growth, whether by addition or organically, in a declining market is expensive and a poor return ... or are you advocating diversification. Go into business you don't understand. Inhalers anyone?

Very grateful for the contributions which everyone makes here, but we will have to disagree on this topic, because with IMB a mature cash generating business in a declining market the case for a major buyback programme is 100% made. A shame Bomhard wants to continue exclusively with his excellent debt reduction programme, and hints of further investment in cost-reduction and new products, for at least another year.

Giving the institutions a signal that they will get what they want ... the start of a buyback so they can divest without dumping and eroding the share price ... would have been sensible.

[spud] 17/11/2021 11:02

Given the choice between debt and no debt, I have no hesitation in which I'd chose. spud

[fenners66] 17/11/2021 10:43

"Having some debt Spud is good for taxes etc"

Yes , in exactly the same way as having Less profit , you pay less tax....

[philanderer] 17/11/2021 10:09

SOCGEN RAISES IMPERIAL BRANDS PRICE TARGET TO 1,900 (1,850) PENCE - 'BUY'

[topazfrenzy] 17/11/2021 08:45

Anyway more shares for us once the dividend is paid innit if share price stays low

[topazfrenzy] 17/11/2021 08:44

Having some debt Spud is good for taxes etc

[spud] 17/11/2021 08:43

As most know, I'm dead against company buybacks.Such indulgences smack of:1. The easy option.2. Lack of imagination.3. The theory that their company is the best and most undervalued company on the Market.What I'd like to see:1. Paying down debt to zero.2. Paying a monthly dividend increasing by low to mid single % pa.3. Value enhancing acquisitions.It's not difficult is it?spud

[topazfrenzy] 17/11/2021 08:43

I hope inflation eats away at all the stupid funds that refuse to invest in tobacco stocks, that they see negative returns in real terms for their stupid clients

coz that's how stupid they REALLY are by staying out of this space collecting 9% returns by doing absolutely nothing lol

[trident5] 16/11/2021 11:38

£281m

[lendmeafiver] 16/11/2021 11:35

I didn’t think there was an accounting profit on the sale of cigars.

[trident5] 16/11/2021 11:30

I don't think you should expect £3 next year - it includes profit from selling its cigar division and big derivative gains. Normalised - c160p.

[lendmeafiver] 16/11/2021 11:13

Solid results, £3 eps, find me another ftse100 trading at PE of 5, amazing value.

[pander45] 16/11/2021 11:03

Good results, good strategy. Expect long term gain here, capital and income.

[saltaire111] 16/11/2021 10:38

I get that. But there will undoubtedly be other sales, efficiencies and rationalisations to come each year. If they keep up the pace and strategy on debt reduction, it will be debt free in six years.

Salty.

[daneswooddynamo] 16/11/2021 10:10

This years debt reduction was obviously enhanced due to cigar sale. Ex that more like half a billion a year….from the reduced dividend

[careful] 16/11/2021 10:10

Topped up with more.

This is the best annuity rate in the market.
Except it is not an annuity, we still own the capital value of the shares.

The whole system is broken right now, but that is fine with me.
I will buy shares when it is 2 for the price of 1.

Maybe Larry Fink and his chums at Blackrock who control $9tr. disapprove of of what IMB do, it is naughty.
They control all of those ETf's and like to play God.

If so, good, thanks for the gift.

[fenners66] 16/11/2021 10:09

saltaire are you assuming "debt free 6 years" that the debt repayment is repeating this years pay back which has the cigar business sale.?

[saltaire111] 16/11/2021 10:04

Insane market reaction to these results. If the company continues to operate at this level, then it will be debt free in what, six years?

Completely mad reaction in marking the shares down. I thought we would see this re-rated immediately.

Salty

[saltaire111] 16/11/2021 10:04

Insane market reaction to these results. If the company continues to operate at this level, then it will be debt free in what, six years?

Completely mad reaction in marking the shares down. I thought we would see this re-rated immediately.

Salty

[creditcrunchies] 16/11/2021 09:57

Gold stocks are the same, really cheap high yields, low debt, record gold prices. Out of a favour with fund managers also. You can see why people say investing in a managed pension fund is a waste of money. The entire industry chase low yield low growth.

[janhar] 16/11/2021 09:56

Interesting idea on LSE board to switch to monthly dividends to attract more PIs to compensate loss of IIs due to ESG. Would love that.

[fenners66] 16/11/2021 09:53

'-- Deleverage ..a target leverage towards the lower end of our net debt to EBITDA range of 2-2.5 times.

-- Surplus capital returns to shareholders to be considered once target leverage has been achieved.

This year we reduced adjusted net debt.... with net debt to EBITDA gearing reduced by 0.5 times to 2.2 times, at constant currency.


So put the three items together , target lower end of 2-2.5 - Tick
Return surplus capital to shareholders once achieved.... Tick?
If not near term just to cope with fluctuations it cannot be far off.

[zeek] 16/11/2021 09:44

So another 4 years of at least £1.39 dividend a year probably growing by 1% min per year. Possibly even better for the last of those 3 years if the plan works out.

[dmore2] 16/11/2021 09:26

dont expect buybacks or big divi raise for at least 12 months

“Our five-year plan to transform Imperial is divided into two distinct periods. The year ahead will complete the two-year strengthening phase, with further investment in our five priority markets and NGP pilots, the embedding of new ways of working and cost-saving initiatives.

“This period builds the foundations for the subsequent three-year phase, which focuses on the acceleration of returns and sustainable growth in shareholder value.”