British American Tobacco ADR Representing Azione Forum

I would like to hear what you think about the future prospects of this company. For example, the minimum age for cigarettes in the UK is to be raised by 1 year every year.

In addition $BTI (+0,76%) is also entering the cannabis business.

6 Commenti

Kevin E.@KevinE

6Mes

Why the ADR?

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Visualizza tutti 4 ulteriori risposte

TaxesAreTheft

@TaxesAreTheft

9Mes·

Reuters - British American Tobacco reported a 5.2% increase in full-year profit on Thursday, exceeding analyst expectations.

The maker of Dunhill and Lucky Strike cigarettes said its adjusted diluted earnings per share stood at 3.86 pounds , compared with a 3.76 pounds consensus from analysts polled by the company.

$BTI (+0,76%)

1 Commento

TaxesAreTheft@TaxesAreTheft

9Mes

I'll have a look at the detailed report later, but so far everything looks as expected, if not better.

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TaxesAreTheft

@TaxesAreTheft

9Mes·

$BTI (+0,76%) has its earnings report in two days. Here are a few things I expect and would like to see.

First of all, the wishes

The sharebuyback program remains suspended for the time being. I want to see the debt reduced.
none combustible growth, especially in Europe

What I am assuming

I think the figures will be as sobering as Altria's, but there won't be a big price increase compared to Altria
Market position will be much better than Altria
Confirmation of a growing nicotine market
Vuse continues to build its market position better than expected
Declining sales volume of cigarettes, less than Altria
Rokord sales of none combustible products

For the time being, the share price of $BTI (+0,76%) neither up nor down, due to the enormous lack of interest in big tobacco. I expect to see the first real price movements towards Q3. I can well imagine that disposable vapes will be banned by the end of the year, at least in the USA.

user7082550a51904114

@user7082550a51904114

10Mes·

Hello everyone,

I have a question about dividends and withholding tax.

The British American Tabacco share is traded both in the USA as a $BTI (+0,76%) as well as $BATS (+0,49%)

Is there a difference in the net dividend in Germany?

Thank you for your answers!

Regards Max

5 Commenti

Drachen@Drachen

10Mes

always $BATS do not pay withholding tax

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Bass-T

@BASS-T

1Anno·

A pot with a bite - why it's not the solution to British American Tobacco's $BTI (+0,76%)
$BATS (+0,49%)
dwindling share of smokers 🌬🍁

Hello everyone,

I've been taking it a bit easy with Getquin over the past few weeks, but today I'm going to highlight one of your apparent favorite stocks: British American Tobacco. For the structure of the analysis, I will divide it into 2 chapters:

Part 1

Current status of the share based on fundamentals & short interest
Basics on the effects of cannabis using the main ingredient THC as an example

Part 2

The importance of cannabis for British American Tobacco

Part 1 - Current status of the share 🕵️

This time, however, the whole thing will be approached from a completely different angle: Can medical cannabis or, after legalization, the German market help BAT to achieve its former greatness?

Important here is the DisclaimerThis is not an investment advice. It is also not an invitation to buy / sell financial products. I describe here only my opinion. You have your own responsibility towards your investments. So I also assume no liability.

You have already read it - I am ranting about "old greatness". If we look at the chart from today (July 17) and compare the 32.96 USD with the price 6 months ago, we see a decline of 14.43%. It becomes worse, as soon as we push the regulator on the year to year comparison. Then we see a loss of -18.46%. A richly lousy performance for a stock with expected revenue growth of USD 0.8 billion from 2023 to 2024 (see (1), (2)).

Where does the share currently stand?

We see that the current P/E ratio is 8.55 of current earnings. The PEG ratio as a fraction of this P/E with the expected growth in earnings per share is:

PEG RATIO = 8.55 / 11.8 = 0.73

So we see that currently just 73% of the expected growth over the next 5 years of earnings per share COULD be priced in.

Why COULD?

As a simple look at past EPS growth shows, year to date EPS growth has been 1.7% year to year comparison. The quarterly performance of -6.31% indicates a significant depreciation in the stock. This would go hand in hand with short sellers (these are so called short sellers) jumping on the stock as well. If we look at the data, however, an exponentially high occurrence of short sellers is not noticeable at all. Specifically, 4,890,000 shares were sold "short" on 6/30. This means that I, as a seller, do not own the stock at all, but I sell it to you.

Why can I do that?

The trick is quite simple and resembles a cash bet on who can drink the most. I bet you that I will sell you a beer in a week and that I will be nice enough to do so at a discounted price! Am I not nice?

The answer is: No. I would not be in this case.

Selling short is something I would have done in the past only if the fundamentals no longer convinced me. So I expect the price to drop further and sell you the beer in a week at a higher price than it's worth right now.

Why would I go for something like that?

If I am wrong as a short seller, it is theoretically possible to make big profits. However, only if the expert or the offering capital market institute judges worse than you. This requires some self-confidence to make such bets. At BAT we see that currently +15.9% of shares have been sold short. But that's just 0.2% of shares in free float. If I wanted to influence the market at this point, I could have made a great YouTube thumbnail with the title (see (2), (3), (4)):

"OH NO! SHORTSELLER RATE DOUBLED! GOES BAT NOW BROKE :O :O"

The statement would even be correct when compared to 4/30/2023, where only 0.1% of the shares were traded short. But now 0.2%!

What I find exciting about this is the valuation of this. While since 15.5.23 the short shares relatively constant in the interval:

K e I(3,590,000, 4,890,000), values beyond the 9 million mark were quite common in the past. So we can see very quickly that the mere number does not say much at first. What is important is the valuation of these shorted shares. While we sold the mentioned 3,590,000 shares short on 5/15/2013, this resulted in a value of 133.48 million USD (cf. ibid.).

So what?

The last known date of short sale of BAT shares included significantly more shares and was valued at USD 162.35. That is (cf. (3), (4)):

4.89 million shares at $162.35 million yields a more significant share price discount than

3.59 million shares at 121.7 million USD

What could this mean?

We must not forget that we are here at a very low percentage of shares sold short. Apparently, there is no pessimism among analysts, because otherwise marks of 10% of shares are also quickly reached. So we are seeing smaller trades to raise capital. Not a definite bet on the imminent demise of BAT as a group on the part of the analysts (see (4)).

The whole thing then lines up when looking at market cap and shares outstanding. In January, the outstanding shares were still at 2.23 billion shares. However, we are now at 2.23 billion shares at the time of this analysis. So, we see that there are currently an average number of shares available for trading in the market. This tends not to be a good or bad sign - but may suggest that there is not a particularly strong interest in BAT stock from investors. Despite the share price losses described (see (1), (3)).

It seems to me that this circumstance is particularly important, since in January the dividend was still 6.88%, but in the meantime we are at 8.19% dividend yield. So: although the dividend is just higher by 8.19/6.88 = 19.04%, the stock still fails to excite investors. At the same time, BAT's total return since the beginning of the year is just -9%, which is not even a double-digit loss. The P/E ratio of 11.6x in January and now 8.7x does not seem to be a reason for many investors to enter BAT (see (1), (3)).

As a result, we have a share whose short interest seems to be within limits, but which now has to bear a disproportionate dividend and now has to find answers to many questions about the CAGR (annual growth rate of replacement products).

Part 2 - Basics on the effect of cannabis using the main ingredient THC as an example 🏥

An essential topic at this point is certainly Germany.

Why?

Simply put, Germany could become the largest legalized market for cannabis. I'll leave it up to you to decide what you think about the legalization of drugs, but we could (unusually) become a pioneer in the economic field.

The traffic light coalition plans the gradual release of cannabis for "pleasure purposes". So don't forget: Whoever does not enjoy it commits a crime! (Joke aside)

It is here often the column picture for the explanation of the proceeding selected that 2 columns provides. In the first step, the possession of 50 grams of cannabis is to be permitted for persons over 21 years. For the intermediate period 18 - 21 years the federal government plans 30 grams (see (5), (6), (7)).

Why this differentiation?

Essentially, it is justified on the basis of brain maturation. One is of the opinion based on studies that cannabis in adolescence can often be accompanied by a lack of drive based on a lack of development. Therefore one would like to restrict the temptation of a dissolute consumption here over the delivery quantity. Whether this really makes sense, I leave to you again.

In another world (in which I would have something to say about it), there would be no cannabis for under 21 year olds. Certain studies even demand to set the limit at 25 years. I link you to an interesting study under (8), which demands exactly that. No cannabis under 25 (see (8)).

Why am I a killjoy here?

The reason is simple - and everyone can understand it if they want to.

What keeps us working every day? What makes us go to the gym, even though we know full well that we'll be sweaty, tired, and barely able to lift 2 cases of Coke with strained muscles afterwards? (Depending on how hard you train and how often).

"Huh - yeah because I want to look good?"

No. Because your head rewards you effort. Because your body is set up to survive. Because you need it, otherwise you risk muscle atrophy and cognitive decline.

What does this have to do with cannabis?

A lot - and I have already made enemies with the following reasoning.

THEN: How does your body manage to get you out of bed every morning? Why doesn't that work with certain sufferers of depression?

CORRECT: Dopamine. This is a neurotransmitter that (in a very simplified way, this is a stock market forum, not a medical forum) causes motivation and stimulation.

Cannabis is unfortunately suspected to hinder exactly this formation of a healthy dopamine system. However, not in adulthood, but rather in the developmental stage (cf. (7), (8)).

How does cannabis do that?

Relatively simple: THC (tetrahydrocannabinol) can bring this dopamine system to its limits relatively quickly with constant use.

Our bodies are not designed for constant reward without effort. A simple example: Your car broke down and you have to push it 300m up the hill, because the towing service can get there better. So you do this with friends and park the car there. The towing service comes and picks up the car. "What an accomplishment!" Thinks the brain and rewards you with a dopamine rush. Nice!

Now a slightly different scenario: You have to push up 5 cars.

Doesn't work?

Correct. Neither the muscles nor the intervertebral discs will play along at some point. So the dopamine surge fails to materialize.

What if I told you that this is exactly the problem with cannabis? So you consume cannabis so frequently that you're sort of simulating a 5-car dopamine surge every day.

I'll leave out my medical vocabulary and say: Our dopamine system is not made for this stimulation.

So what? I know when I've had enough!

That's what many alcoholics think, too, yet we have sad new records year after year. If you are interested in my opinion on alcohol and Anheuser-Busch, for example, write it to me in the comments!

At some point, unfortunately, the time is reached when our dopamine system no longer emits shocks and virtually only a void follows. Suddenly, going to the gym becomes so exhausting that you just stay away from it.

But it doesn't stop there: Suddenly the heavy carrying of the bags is too much and one can shower "also tomorrow sometime".

Exactly these are absolute symptoms, which are described more often by young persons concerned.

Source (8) gives an example of such a case, where a student of the 10th grade got these dopamine surges regularly and at some point, however, would become so erratic that he had to repeat the 10th grade. He is not alone in this, as brain maturation in males does not begin until age 25 in terms of dopamine. Unfortunately, the critical first phase of puberty from 12-16 years often overlaps with the exploration of boundaries in the drug sector as well, so that it is precisely at this highly vulnerable time that cannabis use can occur. A period that is rejected by leading physicians for cannabis use (cf. (6), (8)).

Here the strongly increased THC content of 10% plus did the rest. For comparison: At the time of our parents cannabis was at about 2% and was rather less suspected for the above mentioned symptoms (cf. (8)).

It is up to you to decide whether this development is due to the illegality of cannabis or whether other factors may have played a role. Feel free to write your opinion in the comments, but stay objective.

But why is British American Tobacco still betting on the world's oldest medicinal plant?

How might cannabis help in the substitute market?

What is my opinion on BAT and legalization?

All these are topics of the second part. Feel free to write me if you would like to see it.

If you liked the article and are on fire for more dividend stocks, then check out my brand new AT&T video on the lead scandal!

https://youtu.be/duftWfK24P8

Only 18 more subscribers to the 1,000 mark! Thank you all!

No investment advice

Your Bass-T

#aktie
#aktien
#dividende
#britishamericantobacco
#cannabis
#stockanalysis

Sources

(1) https://de.marketscreener.com/kurs/aktie/BRITISH-AMERICAN-TOBACCO--54264463/

(2) https://seekingalpha.com/article/4617407-british-american-tobacco-value-income-stock

(3) koyfin.com

(4) https://www.marketbeat.com/stocks/NYSE/BTI/short-interest/

(5) https://www.ka-news.de/region/karlsruhe/cannabis-legalisierung-deutschland-eigenbedarf-hanf-19-7-2023-art-2940325

(6) https://www.spiegel.de/politik/deutschland/cannabis-legalisierung-gesetz-soll-bis-august-ins-kabinett-a-e618a79b-9e87-4213-9672-58c2f17f5d5a

(7) https://www.tagesschau.de/inland/gesellschaft/cannabis-clubs-102.html

(8) https://www.medical-tribune.de/medizin-und-forschung/artikel/kiffen-bitte-fruehestens-ab-25

www.youtube.com - YouTube

32 Commenti

John@Doe

1Anno

Pro 2nd part, thanks for the write up 🙏🏼

•

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Bass-T

@BASS-T

1Anno·

UPDATE: 0️⃣ BASIS POINTS! BUT FURTHER INTEREST RATE HIKE NOT RULED OUT. UNANIMOUS DECISION, NO WORD ON INTEREST RATE CUT 🤔💸

British American Tobacco $BTI (+0,76%)
$BATS (+0,49%) BAT after -20% share price crash: what is management doing?📉

Hello friends of the blue smoke!🚬

As you requested, today I'm going to talk about British American Tobacco - a company that also appears very often in my Getquin as well as Youtube posts. I know what you're thinking now: why should I read through this when I already know your video?

Good point. Just like it and I'll see you next time...all kidding aside.

Today, in addition, for all my non-subscribers on YT, I'll recap the info and then aim for a brief comparison with Philip Morris (PM) to show the different ways two corporations in the same industry can go. The focus will also be on a Youtube comment that I want to use as a hook for this post. So if you also want to get indirect popularity (anonymously of course), feel free to subscribe to me on Getquin and Youtube!

First, as always, my disclaimer: This is not investment advice. It is also not an invitation to buy/sell financial products. I only describe my opinion here and you have your own responsibility towards your investments. So I also assume no liability.

We start with the following questions:

1. BAT in price fire: Why is BAT being punished? How does this affect BAT's stock valuation?

2. how is Philip Morris (PM) trading?

1. BAT in price fire - what happened and what will become of BAT's share valuation?

Many of my subscribers will have seen that my current BAT video has met with a very great response and continues to generate decent traffic including likes. However, the opinions are not always positive, because often I get dislikes for criticizing the favorite stocks of some users despite hours of research and video editing. This is also everyday life and enriches. This would normally not be worth mentioning to me.

BUT:

A user, whose comment is meanwhile no longer displayed, wrote meaningfully:

"I am glad that BAT does not act as you imagine or wish. BAT is a tobacco company and sells cigarettes and that's that.." Zack Dislike.

This stance is essentially based on the notion that BAT should leave the focus on cigarettes in the future and highlights a lack of importance of the trend towards less tobacco products and more tobacco heaters. I imagine I see a fear here that is driving many investors around right now:

"If BAT makes a shift toward more tobacco heaters and possibly cannabis products in the future - what will be left of the cigarette cash cow?"

BAT itself is already clearly in the midst of this upheaval, and not without reason has clear wording à la "Change," "A better tomorrow," and, by implication, protection against smoking-induced risks in almost every one of its annual reports.

Unfortunately, this "better tomorrow" has recently been overshadowed by illegal sales of tobacco products to North Korea, which in turn have fallen under US criminal law for corporations. As a consequence, BAT was kindly allowed to pay 629 million USD to the government authorities and also resulted in a change of leadership within the highest level (see (1), (2)).

So instead of Jack Bowles as CEO of BAT, we now welcome Tadeau Marroco in his new role. He is no stranger to this - in fact, he has been with the company since 1992, almost 31 years, and knows the challenges and goals of the Group. I write this not without reason, because his two specifically defined goals seem at first glance to contradict each other:

1) To compensate for increasing smoking bans and

2) To promote the trend toward smoke-free alternatives.

For one thing, these goals are very broad - how to compensate? How to solve the problem of cross-funding both goals with each other? What is the reinforcement of the trend?

So did that go down well when he stood before the audience with it after taking over on 15.5.2023 and called up these points?

So semi - if you look at the insider transactions that have to be disclosed regularly according to US law, we currently see 30.1 million shares in insider hands. In addition, 665 institutional investors currently own shares in BAT, which, together with the insiders, amounts to about 8.2% of non-private investors. These investors include well-known names such as Goldman Sachs, the American Mutual Fund, as well as Blackrock and Invesco. In the last 3 months, more of these professional investors have divested from BAT than have bought new shares. The result is (see (4), (5)):

86,346 shares sold in the last 3 months.

Vs.

1,648 shares bought last.

In longer-term periods of 3 months and more, we quickly see that more shares have been bought here on average. Thus, we can speak of a short-term flight of institutional investors from this financial product (cf. (5)).

Does this necessarily have to be bad?

Not necessarily, because this type of investor does not necessarily have a long investment focus, but occasionally also engages in medium-term trading. The focus here is quite different from time to time and is similarly volatile as some stock recommendations, because the shareholder does not currently recommend buying the BAT share either (see (6)).

Can we already cut short here and put BAT on file?

I don't think so, as we received a brief trading update on 06/06/2013 on what BTI plans to do going forward and how the second quarter has started so far. We learn that constant currency revenue growth is expected to be 3% - 5% in subsequent quarters and that mid-single digit growth is planned to be finalized for EPS. It is particularly highlighted that EPS (i.e. earnings per share) grew by 4% in the first half, but that seems to reduce the full year performance to -1% considering the FX impact in the second half. I would like to translate Tadeau Marroco himself directly at this point:

"We are also making good progress in reducing our balance sheet positions and will pass on excess liquidity (meaning monetary working capital away from capex or operating expense planning, note from me) to shareholders." - Tadeau Marroco (translated)

Why am I quoting this?

The statement is close to the existing dividend focus and comments very positively on the previous dividend policy. The focus is on reducing cash holdings or redistributing them to shareholders. This is of course gold in the ears of shareholders and a very positive advertisement of the share price so far. The analyst house Jefferies was less impressed by this and left the price target at 4,100 pence (or 41 pounds sterling😊). Based on the current price, that would be about 36.7% upside potential. So much for the highly promoted content on the part of Tadeau Marroco and the brief summary of his points raised.

But wait - there's more!

If you read the trade report crosswise, you can see the coverage of these statements with the forced targets from page 2 upwards. One does NOT want a shift away from the "A Better Tomorrow" campaign that began in 2019. One wants to stick with the mantra that current smokers will switch 1:1 to replacement products and just as one does not want to extend the diversification idea any further.

Means in German mMn: The present product categories VUSE, GLO and VELO are to remain further exclusive product categories and it is not to be established definitely still another mark. Original statements such as (see (7)):

"We have winning brands. We have a strong pipeline ahead of us"
"The strategy is right"

Almost seems like a swearing-in to the existing "A Better Tomorrow" strategy.

Strictly speaking, nothing at all is actually happening now, but this nothing at all must be established positively, because the figures from Q1 actually showed a gain in non-combustion products of 900,000 new customers. This is exciting, because here is argued with absolute numbers that seem huge for consumers. In fact, you just have to compare the original statements: apparently BAT has "reached" the 23 million consumers of non-combustion products - there is an increase of almost one million approx:

0.9 million / (23 million - 0.9 million) = 4.07% growth rate.

That doesn't sound very spectacular at first. The target agreement is more exciting: the company wants to achieve profitability in 2024 with the replacement products. At present, these are still loss-making and cost BAT more money than they bring in. Given BAT's internal structure, this is a difficult situation, because the cash conversion rate is supposed to be over 90% at the same time.

The...what?

The Cash Conversion Rate describes how much money I free with my main business. In other words, what I can convert from net income into free cash flow. It is considered an important measure of the financial health of a group and is easily calculated via (8):

CCR = cash flow / net income

A simple fraction with high informative value about the effectiveness of the capital employed, its turnover and what growth is necessary to become profitable.

BAT itself is unsurprisingly dependent on the cigarette business and would achieve a negative result if viewed individually via substitute products. Therefore, no added value could be created on the basis of the CCR and that would also be the end of the dividend. However, as the company aims to achieve sales of £5 billion with non-combustion products in 2025 and is profitable, the value here would be over 0 and would therefore be suitable for a dividend payout.

But how much market volume is really there?

A look at VUSE shows us: The brand is slowly taking off. We are at 2.8% share growth in the replacement product market and thus at 38.8% total share. It makes you one of the biggest players in this market and is now available in over 40 markets. Colombia and Peru in particular stood out positively in their start-up phase, so we can talk about a reasonably stable and growing replacement product market here.

In GLO, however, we are seeing the first impediments to growth. Specifically, the GLO share in target markets has fallen by 1.1%, so that we now have a share of 18.2% in target markets. Italy and Japan may be a future proxy here, as both markets are currently highly competitive and BAT's GLO brand is struggling here. As a result, the positive growth of the other countries could not be maintained and we observe a setback for BAT here.

In VELO, we see a replacement product that is active in 15 EU countries and whose share in the Modern Oral category has unfortunately also fallen by 1.8%. This leaves only 28.5% share, with high hopes in Pakistan and Kenya.

So much in short words about the respective substitute products. Let's take a brief look at the key KPIs:

The P/E ratio is currently 8.7 times earnings per share. So we are pricing in about 8-9 times the annual payout per share. Compared to Japan Tobacco, Altria Group as well as Philip Morris, this is a relatively cheap value, with the top 5 tobacco companies including BAT priced at 18 times. This means that BAT is currently cheaper than its competitors (see (7), (8)).

But is this also justified?

A look at the chart reveals a decline of 21.41% in the share price over the last 6 months and is attributable to the following factors (see (8), (9)):

- BAT's North Korea sales

- The relatively sudden replacement of management

- Lack of new or rescue impulses from the crisis

- Declining importance as an inflation hedge

If we look in parallel at the growth forecast from the analysts, we get on average, depending on the source:

Growth (profit): 3-4,5%

Growth company: 7.7%

The S&P 500 currently stands at annual returns of 8%-10% depending on the entry point, so I personally see BTI (without performing a complex calculation here) as a defensive stock despite the announcements. In my opinion, it is more about maintaining the existing dividend culture and less about outperforming the broad market in the long term.

This is also in line with the 200-day average of 36.75 USD, which is currently massively undercut by the price of 32.31 USD. Due to the higher discounting of future profits via the key interest rate plus the first growth setbacks in future products, we quickly recognize that this sector in particular must deliver. The future enterprise value (EV), i.e. the calculated value of the company based on future cash flows, has fallen to 97.24 billion pounds sterling compared with EBITDA. Together with EBITDA, this results in a parameter of 7.7, which shows a significant decline in previous company valuations. This has also led to a significant drop in market capitalization and, at first glance, interesting dividend yields of up to 8.2% at a historically low P/E ratio (see (9), (10)).

All in all, BAT is currently caught in the crossfire between management changes, image rebuilding, the declining growth rates of replacement products, etc. in the important emerging markets and must now reposition itself in the market. I am curious to see what innovations will be announced in future meetings. If you ever want to see a detailed stock analysis, feel free to write it to me in the comments.

2. what does Philip Morris do?

I'll drop the bombshell right at the beginning: Today, June 14, 2023, Philip Morris made a very clear statement via management about the future of the Marlboro cigarette:

There is none.

Yes, that's right - Philip Morris is now planning in much more concrete terms to end the mainstay of sales, the classic cigarette, and is now taking a much more precise approach to a burner-free product policy than expected. Only tobacco heaters and electronic cigarettes are to find place in the assortment of PM. One refers here clearly to the 95% less pollutant load by heating and would like however further nicotine products to drive out. At least one way is going in a healthier direction.

PM's argumentation is relatively close to my own: The cigarette market cannot be sustained in the industrialized countries in the long term and needs disruption via substitute products. Every year, 3% fewer cigarettes are already sold per year, which is a benchmark for total sales. So you want to push this cash cow to the end before you lose out to competitors like VUSE, GLO and VELO.

This is exciting as it is a far more radical approach and I personally am now still waiting from meeting to meeting for the announcement of the completely cigarette-free future. I found the call for a ban on single-use e-cigarettes particularly positive, although I am normatively critical of bans. It remains to be seen how governments will react to this demand.

Can this change work to such a radical extent?

If we could say that with certainty, all of our lives would be much easier. Philip Morris itself reports a 35% sales share of non-combustion products and emphasizes that it does not want to create a product image that is too strongly geared to children and young adults. In particular, the in-house IQOS brand is performing well, achieving relatively good sales in terms of new customer growth and their sales figures.

Specifically, net sales increased by 3.2% in Q1, resulting in plus 4.4% sales growth per product. Constant currency EPS was also +4.4%, reaching $1.38. In particular, the following fact is emphasized (see (11)):

IQOS increased its sales by +14% (cf. (11)).

BUT: This does not include currency adjustments.

So where did we end up in this "short" (about 2,500 words) update?

We have realized that the current annual reports and the successes & challenges stated therein have not punished BAT for nothing. You don't get anything for free on the stock market and that is a fact. BAT must answer the following questions:

- How can VUSE & Co. Regain market share from low-cost suppliers with disposable products?

- Is brand focus the right way or do we need more openness here?

- Is the market for substitute products really as big as the tobacco market?

- How long will the cigarette boom in the emerging markets last and how do you reduce the currency risk?

For Philip Morris, my thoughts are as follows:

- At what point do you drop the glow stick?

- Will the position as an inflation hedge be threatened by the substitute products?

- How will PM support Altria after the JUUL disaster?

I hope you enjoyed my brief update on what I consider to be the most interesting points. If you feel like more tobacco now, feel free to check out my mentioned BAT video - every subscriber helps!

https://youtu.be/4TtxKUA1q0k

Thanks

Your Bass-T

#dividend #dividenden
#dividendencheck
#bat
#bti
#tabak

Sources

(1) https://www.sueddeutsche.de/wirtschaft/nordkorea-zigaretten-1.5827632

(2) https://www.deraktionaer.de/artikel/aktien/bat-neuer-chef-zeit-fuer-ein-comeback-der-aktie-20332341.html

(3) https://finance.yahoo.com/quote/BTI/insider-transactions/

(4) https://finance.yahoo.com/quote/BTI/holders?p=BTI

(5) https://simplywall.st/stocks/za/food-beverage-tobacco/jse-bti/british-american-tobacco-shares/ownership

(6) https://www.deraktionaer.de/artikel/aktien/bat-neuer-chef-zeit-fuer-ein-comeback-der-aktie-20332341.html

(7) https://www.bat.com/group/sites/uk__9d9kcy.nsf/vwPagesWebLive/DO6FKEVZ/$FILE/medMDCSLK4P.pdf?openelement