Imperial Brands AGM Update

[idpickering]

What's interesting Ian, from the HYP viewpoint that you mention, is the great disparity between the yields of the tobs MB and BATS, with IMB so much higher. This has been the case for some time.

Even if the IMB div is now at some risk, it would take a large cut to make the yield unattractive for HYP purposes at the current price with a trailing figure of a vast 11.3% on the 19 div of 206.57p at 1,829p. But in view of recent poor news on Next Gen Products, it's prob better to wait for the interim accounts due out on 05 May and see what they say about divs etc. before making further purchase decisions.

Thank you Stephen. I shall do as you suggest. No point in throwing yet more good money at them yet.

Ian.

[Arborbridge]

It's certainly a dramatic difference between BATs and IMB. Both torrid, but one more than the other, and BAT seems to have recovered somewhat.

[scrumpyjack]

It won't be 'cut', it will be 'rebased'.

Most managements cannot bring themselves to call a spade a spade.

[monabri]

The shareprice was hammered today ..a fall of almost 2x the 72.01p XD. Current yield would be 12%.

[idpickering]

The shareprice was hammered today ..a fall of almost 2x the 72.01p XD. Current yield would be 12%.

I can feel a top up coming on.....although I’ve spent enough on these already. Hmm?

Ian.

[Dod101]

I am not tempted to top up. In fact I am mulling over cutting back on them as well as the shares which have had static dividends for a long while.

At the very least I will not be topping up. However Ian, you did well out of Shell so maybe you are right.

Dod

[idpickering]

I am not tempted to top up. In fact I am mulling over cutting back on them as well as the shares which have had static dividends for a long while.

At the very least I will not be topping up. However Ian, you did well out of Shell so maybe you are right.

Dod

Cheers Dod. I got lucky with Shell, and claim no special investing skill. With regards to IMB, I've never really understood why BATS, although weaker too, has not been marked down as much. I agree with Snorvey's comment though. One may as well drop a share and move on rather than just trimming a loser. There is a temptation to just drop IMB, and just go with BATS?.....or just have a lay down.

Ian.

[Dod101]

With BAT yielding 5.9% and Imperial yielding 11.3% the market is telling us something. It is not often so spectacularly wrong so it is clearly expecting a dividend cut from Imperial. Why I am being blind on this can only be because I have done very well from Imperial over many years. I hold it in my SIPP and also in an ISA so I have the opportunity to sell one holding without seeming to just sell part. I will sell the holding in my ISA without further delay as it went ex div yesterday. I have just placed my customary limit order. Now what to buy?

Dod

[PinkDalek]

I agree with Snorvey's comment though.

I do too but he wasn't talking about share ownership.

[idpickering]

I agree with Snorvey's comment though.

I do too but he wasn't talking about share ownership.

Sorry I don't understand. Dod was talking about cutting back on IMB, and Snorvey replied to him as above.

Ian.

[PinkDalek]

I'd hate to spoil a good joke but Snorves was taking about giving up fags completely.

[idpickering]

I'd hate to spoil a good joke but Snorves was taking about giving up fags completely.

Thanks for that. I must admit that I'm toying with following Dod's lead, although the decision will be mine alone of course. Selling out isn't very HYP though is it? But HYP has portfolio in it's name, so portfolio management must allow that I guess.

Ian.

[Dod101]

I'd hate to spoil a good joke but Snorves was taking about giving up fags completely.

Thanks for that. I must admit that I'm toying with following Dod's lead, although the decision will be mine alone of course. Selling out isn't very HYP though is it? But HYP has portfolio in it's name, so portfolio management must allow that I guess.

Ian.

Just to encourage you to indulge in a bit of pickering, I have not quite sold but have a limit order placed. It will no doubt receive an offer for takeover next week. Just a thought.

Dod

[idpickering]

I'd hate to spoil a good joke but Snorves was taking about giving up fags completely.

Thanks for that. I must admit that I'm toying with following Dod's lead, although the decision will be mine alone of course. Selling out isn't very HYP though is it? But HYP has portfolio in it's name, so portfolio management must allow that I guess.

Ian.

Just to encourage you to indulge in a bit of pickering, I have not quite sold but have a limit order placed. It will no doubt receive an offer for takeover next week. Just a thought.

Dod

Thanks for that Dod. I was just looking at Aviva or Direct Line? With regards to IMB, I'm glad I only topped up in Jan 2019, and didn't chase the yield further than that. I can accept I might've made an error buying them in the first place, but at that time it seemed a good buy. I've held IMB since 17 Aug 2010, with an average buy price at 2584p (ouch).

Ian.

[idpickering]

Being a man of my word I just carried out the action I’d mentioned above. Out went IMB, and good riddance, and in came Aviva. That’s enough excitement for one day. I feel better for having taken action, now back to my attempts to be hands off.

Ian.

[Wizard]

I am not tempted to top up. In fact I am mulling over cutting back on them as well as the shares which have had static dividends for a long while.

At the very least I will not be topping up. However Ian, you did well out of Shell so maybe you are right.

Dod

Now I am missing something. The top up of Shell reported by Ian earlier this week was at 1939p. Shell is currently trading at 1875? So I don't get the "did well" comment. Please put me out of my misery and explain what I have missed.

[idpickering]

I am not tempted to top up. In fact I am mulling over cutting back on them as well as the shares which have had static dividends for a long while.

At the very least I will not be topping up. However Ian, you did well out of Shell so maybe you are right.

Dod

Now I am missing something. The top up of Shell reported by Ian earlier this week was at 1939p. Shell is currently trading at 1875? So I don't get the "did well" comment. Please put me out of my misery and explain what I have missed.

If I may, I think Dod was referring to me doubling up on Shell in Jan 2016 when they were a lot cheaper. I bought at 1305p per share. I think he thought I was going to buy more IMB due to the current weakness. Doing such things has worked for me in the past, that is, buying on the dips.

Ian.

[Wizard]

I am not tempted to top up. In fact I am mulling over cutting back on them as well as the shares which have had static dividends for a long while.

At the very least I will not be topping up. However Ian, you did well out of Shell so maybe you are right.

Dod

Now I am missing something. The top up of Shell reported by Ian earlier this week was at 1939p. Shell is currently trading at 1875? So I don't get the "did well" comment. Please put me out of my misery and explain what I have missed.

If I may, I think Dod was referring to me doubling up on Shell in Jan 2016 when they were a lot cheaper. I bought at 1305p per share. I think he thought I was going to buy more IMB due to the current weakness. Doing such things has worked for me in the past.

Ian.

Ah, many thanks. Yes, even against today's price 1305p looks rather a good buy

[Dod101]

Yes Ian has picked up my point. I did not realise it was as long ago as 2016 though. Tempus fugit!

Neither do I think that Imperial is a bargain on that scale. In fact, as I said it is being priced by the market for a dividend cut and if that happens it will probably fall a bit more.

Dod

[moorfield]

Oh no Ian, not again, that's the second time in a week!!


by idpickering » February 21st, 2020, 5:24 am

I can feel a top up coming on.....although I’ve spent enough on these already. Hmm?

by idpickering » February 21st, 2020, 12:06 pm

Being a man of my word I just carried out the action I’d mentioned above. Out went IMB, and good riddance, and in came Aviva.

Are you sure HYP, as it was intended to be practised, is really right for you ?