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Far from boring today as IMT hits an all time high. ATB.
An interesting fact about IMT is that its price sales ratio is five times lower than BATS's. This means that if IMT sorted itself out and discovered the secret of making a decent profit on a packet of fags its share price could rise up to five times! Just so that the only two tobacco companies in the FTSE could sit there side by side on about equal terms. How is that going to happen? (1) IMT find out all by themselves how to convert their massive revenues (double BATS's) into a decent profit or (2) someone else does it for them. In a world of static/shrinking demand it must be galling for IMT's profitable competitors to know that every pack that IMT sells on its own inept terms is one less they could have sold themselves.
Boring shares are usually these ones that outperform the FTSE when the market is very volatile. We now have that speculation of a merger or buyout returning to IMT. Think it was back in 2011 when Japan Tobacco was rumoured to be looking, now we hear it could be BATS or Reynolds. The only think I have in my mind, this is not an ethical stock, as my dad has just been diagnosed with Lung & Bowel cancer. The sad part, he has never been a smoker, just worked in the shipyards 47yrs ago as a carpentar. All the best whoe continue to hold IMT...
Director deal announced as well as hovering around 24quid a pop, whats not to like? :)
Yes I'm sure people find this share "boring" but with a divi increase to around 127.9 and next year to around 139.1 giving a yield of 5.8% and 6.3% respectively I'm prepared to be bored :) This will never be a share for day traders or short termers but will look after long term holders in spades. Sorry to see you go syntax, all the best in your new holding, and mawtus....no doubt you'll be able to buy back in soon, it will be back to the mid 22s before long. I will be boring again and reinvest Mondays divi payment when the price comes back down. GLA
Very happy, sold part of stock at average 23.50 ish, will buy back tomorrow or sell balance tomorrow if rising . A great share and done me proud plus a good divi payment on monday, will always keep my eyes on this one. Beats working for a living?
at least 10% increase in dividend expected for the full year. this means a (current) full year 2013 dividend of 116.4p dividend is expected to be 128.04p for 2014. with consistently falling dividend cover the last few years, who would have expected THAT??? http://www.marketwatch.com/story/imperial-tobacco-expects-modest-earnings-growth-2014-02-13?link=MW_latest_news anyway, 128.04p is slightly below what was expected for 2014, which was 128.1p :- http://www.fool.com/investing/international/2013/05/14/a-closer-look-at-imperial-tobacco-groups-dividend.aspx
cheers mate. yeah, i did really well here. i was going to stay here for a year or two but i feel a little guilty for buying into a tobacco company haha. a less sinful opportunity came along...and so i decided to plonk it in a specialist insurance company for the divi that's coming in a week.
hope you did ok and best of luck with new stock? I'm hanging about a while but seems slow progress at present. If things do not move in next 4 weeks out and into CWK, an industry and chief exec i know who is blooming astute and company really grown, a very canny outfit to be honest and should have been there years ago as shares have climbed beyond belief. i have a few but not enough.
finally sold my remaining stake at this morning's spike to raise some funds because i am looking at another share to buy at the right time. good luck to you if you remain invested.
http://www.standard.co.uk/business/markets/imperial-tobacco-leaps-on-9bn-payout-buzz-9098773.html
The jury seems to be out on that provocative article, see comments & poll showing only 30% rate Apple a 'Sell'. DGE, which I hold, have made another innovative purchase of a Premium brand Tequila, but suppose no targets had presented themselves? The decision to up the dividend or buyback increasing the value of your shares for future opportunities, is usually decided by whether the SP is considered high or low by the BOD, when they are flush with cash.
... below you can hear/read what what some say about Apple's buyback and how futile (and worse) it is. I feel IMT have made the same mistake with all that lovely cash with which so much more could have been done. The fact that MRO, with its cash, has instead paid down debt and given a dividend is, in my opinion, what separates a better business, and more so one that is better managed in the interests of shareholders. http://finance.yahoo.com/blogs/breakout/apple-slammed--why-buybacks-are-for-idiots--macke-165054185.html If the link has disappeared search for apple-slammed--why-buybacks-are-for-idiots--macke
most shares are tanking. i believe this is due to wed & thu where the fed will meet to decide on tapering measures. perhaps buy in again on friday after full details are known. with china's PMI drifting below 50 and if the fed announces further tapering, this could scare the markets further, other than the ongoing emerging markets rout.
Are terms the City scribblers use to define stock attributes. Imagine a pair of scales. If the FTSE falls, mega fund computers Sell Risk stocks & Buy Defensive, 'Risk is off the table'. Vice-Versa if FTSE goes up. A PI with a balance of Both may see little change to his PF. This may explain unexpected rise & falls in your PF.
Opium, I don't feel MRO is the riskier of the 2, but both have dropped sharply again this week, quite unexpectedly, and seem to have litle support - which is very strange re MRO since the 15% ex-dividend date is just over a week away. At least Credit Suisse (thanks for the link syntaxity) seems to share the sentiment (blind/desperate optimism?!) of a few others that takeover and IMT might both soon be used in the same sentence again - which, if nothing else, should set a lower limit during the drop as the gossip persists and, if it ever becomes reality - who knows if it could really get to 30 pounds or more a share, as touted before.
credit suisse listed IMT as a takeover target. "Imperial Tobacco Group Plc advanced 0.8 percent after Credit Suisse Group AG listed the company as a takeover target." http://www.bloomberg.com/news/2014-01-27/u-k-stocks-drop-for-fifth-day-as-vodafone-bg-group-fall.html
Yes, I agree. But definitely riskier than IMT because of exposure to Oil & Mining. If global growth slows, so do mining & drilling projects, but people keep smoking through good & bad times. I am holding Weir with similar exposure to those sectors. I try not to have overlapping bets & the question I would ask myself is which is best? I may put it in my watchlist. 'lethargy bordering on sloth is our investment style''.
Thanks Opium. One I find interesting is MRO, at anything up to 330-340p it seems like good value. What's more, they are paying a 15% (that is not a typing error!) special dividend in a couple of weeks accompanied by a 11 to 13 split. So for anybody that wants quick income, it could be wort a look too. I am not sure if MRO is as risky as IMT and the income may be a one off, but it is interesting enough to look into, if only for the 47p special dividend.
Really? Do you have any other stock interests? A lot of us have AIM Oils, Golds, Tech. etc. These are REAL risky bets paying no dividend, unlike the 4th largest Tobacco company in the world. Share buybacks are a GOOD thing for investors & nothing to be scared of.
... that's a good find syntaxity, thanks for the link. One question is that despite a lot of positive-ish sentiment, it seems that only IMT itself is buying any shares. They're committed to buy 2m shares, as far as I can ascertain. And they are approaching that number. What's going to happen to the share price when IMT stop buying?
http://www.telegraph.co.uk/finance/markets/questor/10581643/Questor-share-tip-Imperial-Tobacco-remains-a-solid-investment.html forecast dividend for this year is 127p and with the shares at 23 quids a pop, it is still a 5.5% yield.
Any of those watching Imperial Tobacco for a while - do they usually say anything interesting at the AGMs or is it just a bunch of proposals and votes? The IMS is a week later (AGM 5th Feb, IMS 13th Feb) too. I would imagine the big news some investors are anticipating is the e-cigarettes product(s) and other tobacco alternatives plans and launches, since they are due to be released in 2014. Some 'experts' predict e-cigarettes will eventually outsell traditional cigarettes(!!), so the potential is incomprehensibly massive (Vype seems to be the main man in UK). e-ciagsales sales grow exponentially year on year, and Imps recently acquired the assets and patents of a Chinese company specialising cigarette alternatives like e-cigarettes, and now have taken its co-founder and the "inventor" of this exciting new product himself onto the team. Bizarrely, Imps picked-up all that for just 50 million, so it's hard to see how that could have such a huge impact if the other big boys did not bid to push the price up a lot more. This is a fascinating watch - the more I learn the more I can understand why it can go up or down by 1-4% in any given day, even with apparently no new stories to fuel the volatility. A risky hold for the brave - could burst in either direction, especially if the forecast EPS increase is achieved or some new product news excites the market.
hope they enjoy UK products and hope they are correct in their assumptions, I'm never so lucky but hanging on in there, who knows?/