Member Info for deeplake77

you are right, not much to report. The summer lull is here. I think fear of recession is keeping the share price suppressed. Looking at the charts, the short position dropped by a large margin, which if anything indicates that even the shorters think is oversold?
Meanwhile this morning:
LIBERUM CUTS ANGLO AMERICAN TO 'SELL' ('HOLD') - TARGET 1500 (2200) PENCE
LIBERUM CUTS RIO TINTO TO 'SELL' ('HOLD') - TARGET 3300 (4500) PENCE
LIBERUM CUTS BHP GROUP TO 'SELL' ('HOLD') - TARGET 1400 (2000) PENCE

Anybody as anything interesting to add?

Just read this on lse news, not sure if the figures are right though: "Volcan Investments announced late Thursday it will be selling 1.9% of the company, worth 24.7 million shares. With Anglo American at 2,079 pence a share, this would be worth some GBP513 million.Volcan is wholly-owned by Indian businessman Anil Agarwal's family trust."
Also an analyst at RBC said: "We would not expect to see any fundamental derating in Anglo American on the back of this adventurous bond coming to an end.”
Hopefully the ill effect of this sale will end in few days and the share price can climb up again!

Why such a low opening today? A RNS was released about 290,000 shares being bought back and if anything I was expecting it to open higher. Instead we have a 5% drop on opening. Other miners doesn't seem to be suffering.

How would a £200m share buyback impact the shareprice? At the moment the market cap is about 20 billions so the share buyback represents about 1%
Is today raise already taking into consideration the forthcoming buyback or is more raise to come?

https://www.bbc.com/news/business-48752929

Hi Velo. I for one stopped worrying about the share price after I initially panicked. I got into IMB for the dividend and possibly growth. Now I will be a "forced" long term holder with a policy to reinvest dividends. As long as the divi are not cut and you have a re-investment policy, your average will come down relatively quickly. In actual fact as a new long-term holder the low share price suits me, it means the dividend money will buy more shares which in turn will yield about 10%. Even though I got in IMB when the share price was above £30, my initial investment is now yielding 7%. As long as the tobacco industry doesn't collapse due to new regulations, I would be happy to hold IMB for the long term (10-20 years).

I have just read the full conference transcript with Deutsche Bank that psinker posted. Some very encouraging points in there. In particular their commitment to financial policies taken before the share price drop.

Why the sudden drop today?

Thanks for your input guys. It all seems valuable info to me!

Hi Irene,
That's always been my mantra and part of my investment strategy. I try to have a balanced portfolio of growth shares and "unloved" stocks. My problem in here at the moment is I though that £27 was a cheap price.
There was a conception in the market that a stock like this would never yield more than 6%, because the share price would correct itself as the dividend would increase. Therefore the share price would growth as the dividend. Now the opposite is happening and I'm thinking why the big investors are jumping ship even a 10% increase in dividend has been announced? Naturally I still believe in IMB, the results didn't look to bad to me, but I'm a bit concerned now. Hopefully soonish we can be in a better position

I know what you are saying, but going purely by the fundamentals this is way oversold. There is not much rationale at the moment for the price being so low, we lost 49% in less than two years. I know things can turn around quickly though. That's way I'm not selling now to re-enter at a lower point, worried I will be caught out!

Hi Velo,
I'm not expert, but looking at candlesticks, there is no buying pressure at all, the trend is downwards and there is no indication of reversal. Also there is no news due to be reported in the next few weeks/months. Given also the general bearish direction of the markets, it surely doesn't paint a rose picture. I think it could down to £15. Are your calculations close to this figure?

This share reminds me of Anglo American. About 3 years ago they went down to £2.50 and as soon as the sentiment changed they went back to £20 in a couple of years. I know they are very different industries and situations, but I suspect trends and sentiment sometimes are bigger factors than fundamentals.

It's going to be interesting to see how the Easyjet Holidays is going to perform next year. It's supposed to be launching in autumn 2019.

What does mean for share price? that's the million dollar question!

Thanks. I think you mean: FDA Chief Considers Ban of All Flavored E-Cigarettes?
I can see the huge positive for IMB, that's a field where they are not really a player. But the key words are "FDA Chief considers....."
Unfortunately not a given that it will happen. And we know how lobbying works in the USA

Any idea of the reason of the sudden and unexpected jump at about 2:30 this afternoon? Went up more than a pound in a matter of minutes. Can't see any RNS apart from general director dealing

Why the sharp raise today after weeks of constant decline? Couldn't find any news, could it be the latest broker rating, issued today?

Yes agree, very good strategy! Thanks for the info ;-)

LordAdam, I try to follow the same criteria for investing. But I struggle to get such a high yield. Lots of companies issuing profit warning with consequent price drop and no guarantee of a dividend. The companies paying good and rising dividend seems to be tobacco and oil companies. Do you venture outside the ftse 100? Marco