British American Tobacco 🚬 ☠ - BATS

hey guys, might be a stupid question but can anyone explain these images? and price? Was this a huge selloff that was bought up quickly?



1 Like

It seems like an error. The 52 week range for the stock is 2249p-3502p. The 52 week high only coming in Thursday 8th 2020 whereas back in May 2019, it was trading as low as £22.49.

1 Like

I noticed this in my tracking google sheet… seems it being reported in pounds not pence for some reason.

2 Likes

Doesn’t look like an April Fools Day joke… British American Tobacco working on COVID-19 cure. Might be worth a small speculative investment.

3 Likes

From what I’ve read smokers are at greater risk from COVID-19, makes sense that they protect their revenues :nerd_face:

2 Likes

I’ve just released a new blog post on British American Tobacco where I analyse the company and come up with a target price for them.

To read my full analysis on BAT, hop onto :arrow_down:

https://lewishardinginvest.com/british-american-tobacco-stock-analysis/

1 Like

link is dead?

1 Like

I moved my website over to squarespace and unfortunately my old blog posts were deleted. Not sure how to get them back unfortunately :frowning:

1 Like

Bats is a great company, focusing on moving to vaping aswell. Great dividend too

2 Likes

Yeah I was thinking the same and will be even better if they can get in to the cannabis market if that gets the go ahead

Yeah they are to big to fail, been going for many years.
I was lucky to inherit some shares from my grandad a few years ago, which made me look into further… no way I was selling these, I now buy more monthly.

Yeah definitely going to into cannabis, they bought 126 million stake in organigram which is a cannibis company :grinning:

2 Likes

BATS plc share price might take a hit after tomorrow. The Bureau of Investigative Journalism and BBC Panorama are doing an expose on them.

1 Like
2 Likes

Not sure how bad the effect will be, after all their business model is making cancer sticks so bribery and spying really isn’t that bad in comparison. :joy:

7 Likes

how bad do they have to be to really affect their image of killing their own customers

2 Likes

To phrase the above opinions another way, if you were a current investor and were satisfied this didn’t pose an existential risk to the company or a material impact to its bottom line, would distaste for whatever is unveiled alone make you sell for any reason other than bringing forward existing plans? Those who have either always had, or have developed, moral qualms with the tobacco giants, would surely not be holding any stock?

It has dipped a few percent since Wednesday and might dip further tomorrow, but the movement seems modest compared to what you might expect if it were a company in another sector.

2 Likes

Documentary on iplayer

4 Likes

In this video I analyse British American Tobacco stock ($BTI) (£BATS) using fundamental analysis. Is BTI Stock or BATS stock a buy?

I go through British American Tobacco’s business summary, sales breakdown & financial statements to get an understanding of the business. After this, I go through my analysis checklist and then value British American Tobacco stock using the discounted free cashflow method.

British American Tobacco plc is a British multinational company that manufactures and sells cigarettes, tobacco and other nicotine products. As of 2019, it was the largest tobacco company in the world based on net sales.

British American Tobacco Stock offers a 8% dividend yield which shows they’re a real ‘Cash Cow’. High profit margins & free cash flow allows for great capital allocation for shareholders. Following on from the HUGE $49B Reynolds acquisition in 2017, long term debt is being repaid & dividends increasing year after year. In fact, BAT are a European Dividend Aristocrat and have a long history of distributing cash to stockholders.
⠀⠀⠀⠀⠀⠀⠀⠀
Please also remember to like and comment, if you enjoyed the video!

Subscribe to Lewis Harding Invest on YouTube.

5 Likes

Firstly I really enjoyed that @LewisHarding , forgot to say it when I watched it.

My general question on those holdings that some avoid for ethical reasons is, to what extent do the normal rules of market forces still apply? BATS rank pretty highly vs their competitors in value and in the tobacco market they’re better diversified (while they’re behind the curve in alternative revenue streams this should position them well when they do seek to ramp non-tobacco up). Whether I would translate this into saying, the yield is fantastic and I also see some upside in terms of long term capital growth to bump up the total ROI, harder for me to assess. No-one has a crystal ball on an individual stock but I’m asking on a more general basis in terms of stocks which are to many an ethical put-off.

1 Like

Thank you for the kind words Hornet! It’s very much appreciated and I hope I added some value.

That’s a fantastic question for sure! Tobacco & Energy stocks have not had a great time in recent years due to ESG reasons. It’s impossible to say what will happen, however energy is probably in a better position than tobacco as oil/gas is still very much needed in today’s world.

I’m limiting my stock holdings of these type of companies to only a handful. BAT looks great from a fundamentals basis so I think it’s worth the risk. Especially as they have a juicy 8% dividend which has no signs of going away soon!