ESG threat24 Nov 2020 17:50
I hold the stock for life due to the high dividend and not because i am betting on any meaningful price appreciation, nonetheless i am concerned about the ESG investing trend which is going mainstream and forcing many institutional investors to dump tobacco related stocks. I am convinced this is the reason that the SP has remained depressed despite the strong financial performance of BATS. I have discussed this with other investors and I have come to the conclusion that the ESG trend, along with a low share price is likely to entice private equity investors to club together and take it private. Irrespective of the ESG factor, the strong ROE that BATS has cannot be ignored and the low SP makes it attractive for private equity investors in my humble opinion.
I will be looking to accumulate below £25.00.