Imperial Brands Share Discussion Threads

[essentialinvestor] 10/11/2016 16:32

33.80 was the lowest I managed, just missed some 5 pence lower.

Adding in small lots as thought today would be volatile,
but not quite this volatile!.

[philo124] 10/11/2016 14:33

Topped up.

[steeplejack] 10/11/2016 14:17

I think some players whether hedge funds or whatever are churning the markets to snaffle some trading gains.The likes of Imperial have more than given back all recent gains and it looks oversold.Yet,there's a temptation to top-slice some defensives and nibble at cyclical stocks like Keller which offer a reasonable yield and would be a beneficiary of US infrastructure spend.Other than that,I'm going to wait for the dust to settle...presuming it does,everything appears feral.

[philo124] 10/11/2016 14:08

All defensives off. Seems premature to me.

[essentialinvestor] 10/11/2016 13:57

The dividend policy looks a little aggressive to me, 5% increases would be
more than enough.

Without FX net debt fell by approx 1 Billion.

[philanderer] 10/11/2016 13:19

Yes , a lot of rotation out of 'defensives' into 'risk off' shares. Miners going gangbusters.

[steeplejack] 10/11/2016 12:31

Imperial brands ranks as a defensive but such companies have also benefitted from being bond proxies.With treasury yields now rising,some of the bond proxy attraction is diminishing combined with a feeling that Imperial's debt mountain might ultimately compromise dividend policy I suppose.Looks somewhat oversold.

[philanderer] 10/11/2016 12:20

Berenberg cutting tp from 4500p to 4280p not helping today.

[essentialinvestor] 10/11/2016 12:04

Sweep, looks a defensives unwind, there are perhaps some concerns following
results, the extra investment in growth brands unexpected, looks reasonable
to me near these levels, rate the CEO.
Just IMV only and may be wrong.

[sweep stock] 10/11/2016 10:55

Maybe it's just me but I find myself a little caught out by this. All defensives are getting sold off it seems. Is it a time to top up for the long term investor? Looks most likely I'd suggest but where is the bottom here.

[essentialinvestor] 10/11/2016 08:58

Added a small amount this AM.

[greenstrader] 09/11/2016 18:26

72 million buy?

[essentialinvestor] 09/11/2016 16:53

Is this the ending of huge outperformance in defensive mega caps.

Mentioned a couple of weeks ago on the LLOY board that risks in defensives
were being underestimated, as everyone appeared to be on the same bus.

[minerve] 09/11/2016 13:21

Agreed. Wait and watch.

[speedsgh] 09/11/2016 13:18

Lookng purely at the chart, at 3620p it would appear that the share price has fallen decisively through the 200 day moving average which has acted as pretty reliable support since the current uptrend started in Q1 2014. Looking to add but chart is a little worrying.

[philo124] 09/11/2016 13:02

Thanks. Or the commitment to a 10% yearly rise in the divi for the foreseeable future.

[speedsgh] 09/11/2016 12:42

Imperial Brands is undervalued, says Jefferies -

Imperial Brands (IMB) may not be on track to grow earnings at the same level as its tobacco rivals but Jefferies analyst Owen Bennett said that does not mean it’s not good value.

Bennett retained his ‘buy’ recommendation and price target of £48 on the stock, which fell 144p or 2.9% yesterday to close at £36.89 as the company announced plans to speed up cost cutting and invest £750 million in key brands such as Winston and Gauloises. The move is a response to rival British American Tobacco’s proposed $47 billion buy-out of Reynolds American, which would create the world’s biggest international tobacco company.

‘While not set to grow earnings at the same level as peers, it needs to be judged on different parameters, in our view, with too much focus on share trends not doing the name justice,’ he said. ‘We believe that actions the company has taken has positioned it well to deliver mid-single digit earnings over the medium to long-term.

'While bears will likely take the additional investment as a sign of weakness we believe the action should be applauded, taking advantage of supportive FX [foreign exchange], and giving them a greater opportunity to improve momentum of growth brands.’

He expected full-year 2017 earnings per share growth of over 10% which he said ‘is not appropriately reflected in the valuation’.

[sweep stock] 09/11/2016 09:31

Fair shout irenekent

[irenekent] 09/11/2016 05:54

Now that the States is legalising cannabis for recreational use how long before big tobacco moves in? Who owns the trademark 'Hash', if anyone? Lets make America great again - a world leader in top quality dope. You couldn't make it up.

[philanderer] 08/11/2016 20:29

Imperial Brands was also a drag on the FTSE despite a full-year results beat. Traders said its plans to step up investment to improve competitiveness caused shares to slide 114p to £36.89.

Telegraph market report.

[minerve] 08/11/2016 12:13

Steady as she goes.

[speedsgh] 08/11/2016 11:36

"The Board has approved a further interim dividend of 54.1 pence per share and will propose a final dividend of 54.1 pence per share, bringing the total dividend for the year to 155.2 pence per share, up 10 per cent and in line with our policy of growing dividends by at least 10 per cent per year over the medium term.

The third interim dividend will be paid on 30 December 2016 with an ex‑dividend date of 17 November 2016. Subject to AGM approval, the proposed final dividend will be paid on 31 March 2017, with an ex‑dividend date of 16 February 2017."

[philo124] 08/11/2016 11:26

Cheap as chips.

[philanderer] 08/11/2016 10:52

Investment expenditure I guess.


Jefferies analyst Owen Bennett said:

While not set to grow earnings at the same level as peers, it needs to be judged on different parameters, in our view, with too much focus on share trends not doing the name justice. We believe that actions the company has taken has positioned it well to deliver mid-single digit earnings over the medium to long-term (and they committed to this in today’s release).

While bears will likely take the additional investment as a sign of weakness we believe the action should be applauded, taking advantage of supportive foreign exchange, and giving them a greater opportunity to improve momentum of growth brands.

The medium-term outlook and expected 2017 earnings per share growth of over 10% (even with additional investment) is not appropriately reflected in the valuation, in our view, trading on 13.4 times net twelve month consensus PE, over 20% discount to the global space (we also think Imperial could be a take-out target in the next 18 months).

[gucci] 08/11/2016 08:36

why the plunge today