Bit BAT bullet

[Arborbridge]

This month I bit the bullet, overcame the various objections and bought some more BATs. The previous topup was back in 2015, but in the past week or two the share had risen to the top of my HYPTUSS. There's room for another topup if capital allows and as you see from the table as it is now, BAT is still only in fifth position.



As regards the next topup, it will be from one of the top dozen shares which may naturally shuffle around in the next month. There are several well under capital weight, but which may be vetoed for other reasons, such as income weight. Three of the contenders are from the financial sector, which is a little worrying given that my total in finance is 27%. I don't usually pay too much attention to "super sectors" but neither would I like to become too dependent. (Thus my interest today in the discussion about Big Box, being a diversification and strengthening of another sector)

Arb.

[idpickering]

Hi Arb, I’d say WPP or SLA are looking like likely top ups for you going forward. As for BATS, I’m making a small top up of them next Tuesday and Persimmon too.

Ian.

[Arborbridge]

Having nothing better to do for the moment, I thought to plot my latet BAT purchase and place it in context with the yield chart, and my previous buys. If you are short of posts to look at, here it is:-

[idpickering]

Very nice Arb, thanks. My top up of BATS is still going ahead on this Thursday. I have faith. lol

Ian.

[Dod101]

I topped up BATs on 16 January at £25. It is a bit late in the day to wait until the price has risen by more than 10% before topping up. Mind you I expect the price still has some way to go. That was with some of the proceeds of Vodafone.

Incidentally I should go away more often because my portfolio as a whole has risen by more than 5% in the last three weeks.

Back to tobacco. Smoking is alive and well in the Far East even although there is like here quite a drive against smoking in public places. I saw very few people smoking e cigs in any form. Either it was the real thing or not at all.

Dod

[monabri]

Incidentally I should go away more often because my portfolio as a whole has risen by more than 5% in the last three weeks.
Dod

I propose that we 'crowd fund' you to go away on hols again!

[idpickering]

I topped up BATs on 16 January at £25. It is a bit late in the day to wait until the price has risen by more than 10% before topping up. Mind you I expect the price still has some way to go. That was with some of the proceeds of Vodafone.

Dod

Thanks for your input Dod. I get that I might’ve missed a bit in the BATS sp rise, but the way I look at it, it’s still a lot lower than recent times, and I want to lock in that juicy yield. That’ll be it for them thereafter for me I think. I don’t see an issue re smoking tbh. Being addictive smokers don’t give up that easily. Not that I’m knocking them, each to their own.

Ian.

[Arborbridge]

I topped up BATs on 16 January at £25. It is a bit late in the day to wait until the price has risen by more than 10% before topping up. Mind you I expect the price still has some way to go. That was with some of the proceeds of Vodafone.


Dod

I'd say that was a rather cheeky, even disdainful remark. I could retort, what a shame you bought too soon - you could have come in nearly 5% lower than that.
Am I really bothered about getting a 6.9% yield in place of your 7.5? No - it is still a very high yield, and I reckon with the price being half its peak, if anyone now waits for an uptrend rather than buying in a solid downtrend (a classical amateur error) I wouldn't blame them for being cautious.

The important question (apart from sustainability) when buying is: is this yield not only high, but sufficient for me?

Yes, on both counts and if the uptrend is established, I might even buy more when capital permits if BATs is in the top dozen of my table.
And Ian, - do your own thing - take no notice of smart Alecs.

Arb.

[Dod101]

[
I'd say that was a rather cheeky, even disdainful remark. I could retort, what a shame you bought too soon - you could have come in nearly 5% lower than that.
Am I really bothered about getting a 6.9% yield in place of your 7.5? No - it is still a very high yield, and I reckon with the price being half its peak, if anyone now waits for an uptrend rather than buying in a solid downtrend (a classical amateur error) I wouldn't blame them for being cautious.

The important question (apart from sustainability) when buying is: is this yield not only high, but sufficient for me?

Yes, on both counts and if the uptrend is established, I might even buy more when capital permits if BATs is in the top dozen of my table.
And Ian, - do your own thing - take no notice of smart Alecs..

I understand your comments but I was certainly not trying to be a smart Alec and I expect the price still has some way to go. Anyway I reported at the time.

Dod

[Dod101]

Yes Ian and for what it is worth I think you are right. I thought long and hard before I topped up but could see no threat to the dividend which is what such a huge fall in the share price implied. BAT has an excellent long term record and the trading statement in December had no negatives that I could see. The Annual Results are due on 28 February so we will see then. Probably get a modest increase in the run up to that date.

Dod