Imperial Brands Share Discussion Threads

[tuftymatt] 31/5/2023 09:47

Agree Spud and fenners66.

Waiting to add further here but won't until I see something that makes me think this downtrend is over.

Good luck all 👍🏻

[fenners66] 31/5/2023 00:33

Some certainly do and despite all the evidence will not have a word said against them....

Remember , the interest saved paying down the debt instead of buybacks could have paid for Double the planned dividend increase.

Lower debt , higher profits and better dividends , i.e. a company on the up , worth investing in.

Instead cash burned debt cost much higher and share price much lower.

[spud] 30/5/2023 20:49

835k worked sell order printed after the bell. with 335k repurchased on the buyback. I'm sure the institution selling is mightily grateful to the Company for facilitating it's disposal agenda. I wonder how many million more they have to sell and how much more damage they can inflict on the Company valuation. Don't you just love buybacks?spud

[valuehurts] 29/5/2023 00:38

Just a standard pullback before we get moving again. Don't cry, dry your eyes...

[jrphoenixw2] 28/5/2023 09:57

I think it is due to IMB being an old-school dividend-income stock. Old-school as in when people often directly held share certificates and were posted dividend cheques that supplemented their household income.

Loading the bulk of the div into Q3 and Q4 likely gives them useful contingency to absorb any unplanned erosion of profits (as recently re: Russia etc?). I agree that processing the div 4* a year is a fiddle, but it is for IMB too; so presumably there is utility in for them?

[spud] 25/5/2023 15:52

Will probably start to stage a recovery going into the 2 biggies around October. Why the company can't just pay an equal weight dividend throughout the year is beyond me.

As is their reluctance to pay down their debt mountain instead of adding to it!

spud

[action] 25/5/2023 15:03

Is menthol ban in aug in USA has something to do with weakness?

[cassini] 25/5/2023 14:59

I sold half my holding at 1840p a while ago, missing out on the rise above 2000p, but it's not looking such a bad decision now.

Is this the time to buy back in?

Hmm. Not sure.

We may yet get a price that starts with a 16-- handle.

[fenners66] 25/5/2023 12:37

Sure questions the buyback when you see how far its fallen in last 6 months.

We can never know - but I believe the share performance would have been better with the high yield debt repaid instead.

[porsche1945] 25/5/2023 12:29

Heading back to about 14 quid. U.K. core inflation parabolic, will need rates of 6/7 pc plus, why have stock risk for yield when you can get the same or nearly the same on risk free short dated gilts. Whole ftse now held up by about 4 stocks, when 3 of them roll over ( Astra won’t ) index will be back to 5400. It’s full of as, a Terry Smith says, junk, but ok for shorting. Even that fkn 🤡 Farage now admitting brexit a disaster, weak sterling sucking in inflation….big big problems coming down tracks for U.K.1970’s re run. Doesn’t help nobody buys U.K. indexes anymore and good companies like bhp and CRH have left or are leaving. I sold this at 27.40 when Fundsmith dumped it and was best lead I followed, had 190k invested in it for yield and takeover prospects by Japan tobacco at the time, it’s been a sorry story since.

[action] 25/5/2023 12:27

New low of year

[tuftymatt] 25/5/2023 09:44

Yeah I forgot too and didn't cancel a limit order that got hit at 1760. No big deal and in 3 months it can pay me a divi and it helps with the average a little too.

Good luck all 👍🏻

[action] 25/5/2023 08:58

Divi 21.59p

[action] 25/5/2023 08:56

Did not realise it

[action] 25/5/2023 08:56

Thanks. Dod not realise it

[saltaire111] 25/5/2023 08:45

XD today.

Salty

[spud] 25/5/2023 08:44

Let's not forget that this is a defensive stock.............Not anymore it isn't and hasn't been for quite some time!spud

[spud] 23/5/2023 15:06

Yup, you can't beat a bit of Bully Buyback if you're a director or an Institution overweight in the stock.

spud

[fenners66] 23/5/2023 14:27

saltaire111

that whilst part of it may not be the whole story (and the directors know it).

Their bonus schemes - you know the ones where they get paid twice or more just for doing the job they are paid for - are also a consideration.

Now the terms of these schemes matter - such as (say) 100% bonus for increasing EPS
or 100% bonus for increase ROCE or some other more easily manipulated version of the same calc.

So - if you could increase debt , reduce capital employed , reduce profit (interest), buyback shares and stuff the shareholders , but at the same time gerrymander the metric used in the bonus calculation ?

Kerching! Get in !

Oh and the instis that can vote you out ?
They love the liquidity - win win

[tag57] 23/5/2023 12:15

Salty,
I would say that the benefit the directors get from options and RSUs depends on the terms. If they are a free carry without any hurdles they will benefit hugely, regardless of the sp, as it they are more like golden handcuffs.
BBs are always a good topic of conversation and while it is not always easy to see the influence on so it was interesting to see the share price drop in BATS following the announcement that BBs were being stopped.

[saltaire111] 23/5/2023 11:54

The directors always prefer buybacks to debt reduction. Why?

Well, a HUGE proportion of their remuneration is in Stock Options and Restricted Stock Units (RSUs). These vest over several years and they benefit from the growth in the share price. Theoretically, buybacks improve the share price and Directors trouser the proceeds via their RSUs and Options. If they put the money into debt reduction and enhanced dividends for shareholders, this too should improve the share price, because of the higher yield. But it is less likely to do so.

So Directors go for the option that enriches them, not the shareholders.

Salty