Member Info for Gohanito

Share price moves with sentiment now so there is a lot of noise.

Positive (for the company) long term trends in the housing market and strong company fundamentals will prevail though (at some point :) )

I think these companies have great Balance sheets now. Very low levels of debt and high level of cash generation. Definitely think a couple of rough years ahead but very good buying opportunities to be had at the right time.

Actually can you think of a better (i.e. safer) place for your money at the moment? Given low valuations, the tobacco sector (and other defensive sectors) will do well over the next year or so while volatility persists and most of the world goes into a recession.

This is a highly profitable, cash generating business that has zero (!) debt. Yes, the next couple of years might be hard given rising interest rates etc. but it's all part of the normal cycle; one cannot expect eternal economic expansion.
Personally, I will be adding to my holding here throughout the next few months with a medium to long term view where I expect significant capital appreciation and substantial dividend payments.
If someone is looking for a short trade, I am not sure this is the right place to be.

It has no value at all. The only thing that matters is whether you can have a methodology or some rationale at least for understanding when a stock is cheap and why. If you can attain that the rest is noise.. (and even then you will probably be wrong half the time at least but you hope your good picks will offset your bad ones).

In what world is the FTSE 100 too high? Most of the businesses in the FTSE are valued like junk companies especially financial institutions - generally UK equities have massively under performed; a trend that I am hoping will reverse as monetary policy across the board normalizes and value shares find their way back into rational portfolios (rather than going tech tech tech).

BAT P/E ratio is 10.8 while PM is 18+ and MO at 33 (dividend yield at 5.8% and 6.8% respectively). Seems pretty cheap currently and yield also seems appropriate. I think there is more upside to come given how solidly the business is run, the level of cashflow and the ability to pass inflation to consumers.

I went through the financials and although they are not bad i don't understand how cash generated from operations was so low this year compared to last year on what was a pretty good year it appears. This is the big puzzle and i think this is why the SP is tanking.

Its baked in to an extend but POD mentioned assets / liabilities are completely separate and the cash being returned to the shareholders should not affect the company's valuation.

Good recovery from this morning. Hopefully it continues.

I agree. Fundamentally the business is probably at a very good point so i think there is a mismatch between price and value of the business. I am optimistic that once the macro / geopolitical environment stabilises the share price will do really well.

The drop in the SP is roughly equal to the dividend that will be received (the drop is actually a bit higher but once you take trading costs into account then the trade is neutral). Hopefully IMB will resume its upward trajectory in a few days as long as the market remains stable and we don't have any major events coming through (Russia invading Ukraine etc.)

It does say in the RNS "initial 5 year". That leads me to believe its easy (ish) to extend and there will be multiple stages to this (plus financing to be closed hopefully in the next few weeks). Seems Tlou is on the right track to create real value in Bots and wider region. Interested to see how that will translate in the share price.

I do believe in this company and management. Having said that I can't wait for things to move a bit quicker and see the investment thesis actually materialize as it's been way too long....

Go for it.

who is selling !