Imperial Brands Share Discussion Threads

[montyhedge] 27/11/2023 08:18

They want the tax revenue, also you can't be a nanny state and tell people what to do.

[laurence llewelyn binliner] 27/11/2023 07:42

An interesting development down under..



Smoking ban reversal to fund tax cuts

Governments around the globe are bankrupting themselves with their endless drive towards leaner/greener/safer/cleaner policies, the right thing to do perhaps, but at the expense of the country imposing the rules, the debt mountains are owned by the population and sooner or later taxes will have to rise to pay for it all..

Wider implications..?

[cassini] 24/11/2023 20:26

The RAF dug up Guy Gibson's (RAF, Dambusters) dog from his grave last year I think.

The dog was a black lab, with a name I'm prolly not allowed to say on here but it started with N and ended with -igger.

Apparently it was an embarrassment for them.

Good to see they have their priorities right...

[spud] 24/11/2023 19:50

A company woke box ticking exercise gone horribly wrong. Why oh why? - Check out the RAF's recent horror show in this regardhttps://www.telegraph.co.uk/news/2023/02/02/britain-becoming-woke-defend/spud

[dartboard1] 24/11/2023 19:28

Alison Cooper was a terrible appointment. Good example of bringing finance into an operational role and it failing ...

[redbaron10] 24/11/2023 16:20

Well Stefan Bomhard is at least stearing IMB in a better direction with his five year plan than where Alison Cooper was heading ie a cul-de-sac.She sold off the cigar business to pay down debt but Bomhard had to slash the dividend by a third to get things back on track here.Cooper and management were hell bent on NGP growth but came unstuck with that whereas Bomhard went back to basics and has increased the profitability of IMB's core business and increased market share with brands in its five key areas of operation.The results have followed as we can see.BATS has a new CEO so let's wait and see what the strategy is and how it is implemented to be fair.

[spud] 24/11/2023 15:22

Monty - There's no doubt in my mind that Management here is head and shoulders above the BAT crew. They've done just about everything right (debt pay-down and BB aside).

spud

[montyhedge] 24/11/2023 10:58

I'm going to start buying Imperial with my Bats dividend for the isa good to get dividends in a different month.

[tuftymatt] 23/11/2023 15:41

A fraction under 52p so as things stand it's another good day here.

Good luck all 👍🏻

[saltaire111] 23/11/2023 15:30

Is the divi 52p this time around?

[tuftymatt] 23/11/2023 11:37

ex divi here monty

[montyhedge] 23/11/2023 11:21

Wonder why tobacco stocks down today?

[fenners66] 22/11/2023 18:15

Apparently cannabis farming in the USA has turned unprofitable - there is a glut of supply and not as much demand as forecast.

[spud] 22/11/2023 17:07

Already own a large stake in a Canadian Cannabis farm (Auxly).

spud

[action] 22/11/2023 17:04

Unless they go in cannabis farming legally done in USA..

[tuftymatt] 22/11/2023 17:02

Very positive end to today and no dip which I thought may come ahead of ex divi.

All bodes well for a challenge of 2000 before the year is out and a divi now in the bag too.

Good luck all 👍🏻

[jrphoenixw2] 22/11/2023 16:31

Telegraph/Questor yesterday...

'Update: Imperial Brands

Shares in Imperial Brands are busy doing nothing in many ways – they trade no higher than they did 14 years ago – but the company keeps churning out the dividends and hence could well remain a staple for income investors.

The fat dividend yield of about 8pc and lowly valuation – the forecast price-to-earnings ratio is around seven – suggest that the market remains concerned about the long-term future of smoking as regulatory pressure and health campaigns continue to weigh on volumes.

Nevertheless, the latest full-year results, released last week, show that the FTSE 100 company remains highly profitable and cash generative as efficiency drives and pricing power continue to offset the relentless decline in the number of cigarettes sold.

That pricing power comes from the company’s array of key brands, which include JPS, Davidoff and Gauloises.

Pricing power is always valuable but is all the more so when inflation is high and businesses face pressure from rising costs, because it helps to protect lofty profit margins, which in turn support the cash flow that ultimately funds dividends.

The dividend cut of 2020 is now fading from memory as Imperial increases its dividends for the third time in a row and confirms plans, first mentioned alongside October’s trading update, for a new £1.1bn buyback – an increase on the £1bn bought back in the financial year to September.

Add the two together and, based on analysts’ forecasts of a further small increase in the dividend for the year to September 2024, Imperial is on course to return the equivalent of nearly 15pc of its market value to shareholders in cash.

As it enters the fourth year of chief executive Stefan Bomhard’s five-year turnaround plan, Imperial is nevertheless having to work hard.

Its medium-term plan is to grow sales and operating profits at a mid-single-digit percentage rate, although in the 2024 financial year Bomhard expects low-single-digit sales growth and a mid-single-digit profit increase, with the bulk of the earnings improvement expected to take place in the second half of the year.

That sort of forecast tends to make investors nervous, as it suggests that more than a few things need to go right towards the end of the year for forecasts to be met. But again, the shares already trade on a lowly valuation and offer a plump yield to reflect this risk.

Imperial will have income attractions for many investors. Hold.

Questor says: hold

Ticker: IMB

Share price at close: £18.48

[tuftymatt] 22/11/2023 09:15

I think it's fair to expect some selling later today ahead of the ex divi drop tomorrow worth circa 52p. That and the US not open after today may cause a few short term wobbles for the rest of the week I think.

Nothing to worry about long term though and I agree that a recovery into Christmas could push us towards the 2000's or just in it. Next year this can run another 5% or so too I feel which along with the solid divi means I am more than happy to carry on holding / adding on dips when they present themselves.

Good luck all 👍🏻

[laurence llewelyn binliner] 21/11/2023 19:16

#Saltaire - 14.11.2023 - enhanced shareholder returns with 4.0% dividend increase as well as a 10% increase in share buybacks, total FY24 returns of GBP2.4BN equivalent to c15% of total market value..

I would like to think that will translate to a +15% share price rise over FY24 too from the GBP18 share price on the day..? target of GBP20.70..?, our XD 23rd will pull us back a little 1st though..

[saltaire111] 21/11/2023 15:20

Thinking £20.00 by Christmas is not out of the question here.

I would be delighted to see a bid come in for IMB, but it’s a big target to swallow.

Salty.

[redbaron10] 19/11/2023 10:48

I agree.If stick volumes continue their global decline at current rates i think there will be some more consolidation within the tobacco industry to protect margins for one of the big players.IMB is the smallest of the big 5 so must be the most vulnerable for a bid imho.BATS bought out Reynolds completely and PM bought Swedish Match so deals are happening.

[action] 19/11/2023 10:16

If Imperial fortunes are turned bid will come sooner than later

[jrphoenixw2] 19/11/2023 10:15

A professional-grade look at IMB from AJBell issued Friday:

[action] 19/11/2023 10:15

Plus bid target

[saltaire111] 17/11/2023 15:39

I’m tempted to buy more but my portfolio is already heavily weighted towards defensive stocks with a lot in BATS and IMB. But they just still seem to me to be the best opportunity in the market. I own exciting stocks like BABA, and I wish I didn’t!!

Salty.