If you believe they will be around in decades to come, and they carry on paying dividends at a similar rate or better rate, and you reinvest your dividends then you can see many multiples on the principal amount just by letting it compound. A lot of that is also betting on people making poor choices in regards to taking up or continuing to smoke.
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Iâm currently debating what to do with my IMB shares, theyâre very cheap but I donât see much significant price recovery from here. Iâm not completely convinced on the NGPs, think in the long term it will be a gradual decline but just not sure if itâll be slow enough to be a good investment.
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The NGPs will make or break the tobacco market in the mid-term (though I fully expect the company to continue its current growth rates for a good few years as tobacco is a growing industry in parts of the world). I believe that Imperial Brands, with their ownership of vaping brand Blu and heated tobacco product Pulze, are in a good position relative to other Big Tobacco companies to capitalize on the changes to how people choose to consume nicotine.
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The new CEO also said they are going to refocus on Tobacco and said the vaping business âexpanded too quickly and too broadlyâ. So expect to see some easing off on next generation products. They saw a dip in sales for those products as well. However, if the UK sees a change in Cannabis laws, then Imperial Brands could rocket up very quickly.
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Not sure if anyone mentioned it but MercadoLibre looks interesting, itâs fairly dominant in South American online shopping and itâs fintech arm has a payments and asset management business which I think could be quite profitable. Especially if South America benefits from a potential commodity boom post pandemic.
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Unfortunately I think weâre some way off a change in cannabis laws but that would definitely give them a long term future and some growth potential
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Thatâs a really interesting take â I didnât take the statement to mean that NGP would be âeased off ofâ, rather that it would be more focused, with vape products being sold to vape-heavy markets like UK/US and heated products sold elsewhere, rather than the current mess of trying to sell vapes in Poland and heated in the US.
Cannabis would definitely be a big opportunity for Imperial, though I suppose weâre still a way off here in Blighty, itâs interesting that they havenât tried to make a significant play in the US markets.
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I donât think Klarna are comparable to payday loan companies, theyâre not charging triple-digit APRs⊠theyâre more comparable with credit cards. If your take is that all consumer debt is bad, Iâd tend to agree with you, but in terms of degree, I donât think buying a laptop over three months at 0% interest (18.9% APR if people fail to keep up the payments) is the same as what companies like Wonga offered.
Klarnaâs whole business model is to give low amounts of credit to people who canât usually get it. They are going to have regulatory issues in the U.K. with the ongoing review.
Take a look at the holdings of EWT or BG Global Discovery fund. Many of these will be suitable for this list. DYOR.
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If this is a success, Iâll fully get behind a Freetrade Forum ETF (ÂŁFETF) or (ÂŁETFF)?
Managed by @Rollingskies, obviouslyâŠ
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I donât think all consumer debt is bad. I think credit cards, for example, are useful - espcially when people just bounce between the offers to make the most of introductory offers.
I donât think that offering loans at the end of a online checkout process is comparable to responsible consumer debt though.
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I think weâll have to agree to disagree for fear of derailing a good topic.
Iâll throw another in here, Etsy ($ETSY). The marketplace focuses on giving a platform to small businesses and individual creators, and is managing to be a real disruptor in retail, a very difficult space to break into with Amazon as the major online player. Etsyâs earnings last quarter beat consensus and Iâm expecting them to do the same again this quarter.
I was going to vehemently disagree with you on this one, but I see their share price went up from $50 to $200+ in the past 12 months during the pandemic. Thatâs impressive. I honestly donât think they can sustain that growth (not even double), but itâs a great recommendation for sure.
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They have a really good turnaround story. Their stock was trading in single digits, down about 70% from the highs of the IPO week, until they appointed Josh Silverman (ex-eBay director) as CEO. He refocused the company on consumer engagement and perfecting the search engine, and theyâve been flying ever since.
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Blackbird offer video production technology, the sort of thing youâd find in a news room to help with editing, rather than streaming. They do appear to be playing nicely with others though.
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This is to true, though I see Amigo loans was added to the list!
Even if a stock looks cheapâŠit can still go to zeroâŠ!
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So having read through this thread, my main takeaway is I need to upgrade to Pro.
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Plus
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