Imperial Brands Prelims

[Minesadouble]

"Just topped up today. IMB is now 3.2% of my portfolio. With BATS at 5.2%, that's 8.4% in tobacco stocks."
Do any HYPers think this % allocation is too high?

Personally I don’t think so.
In comparison my tobacco allocation is 8.3%.
IMB at 4.7% and BATS at 3.6%.
They are both stereotypically HYP stocks in my view.

MAD

[77ss]

"Just topped up today. IMB is now 3.2% of my portfolio. With BATS at 5.2%, that's 8.4% in tobacco stocks."
Do any HYPers think this % allocation is too high?

No. It does depend to some extent on how many different holdings you have/want. I have a bit less at 7.74% (with 37 holdings). Somewhat overweight on both - and happy to stay that way. Others have more than you.

More specifically on IMT's Prelims, today's Times has an overview:

https://www.thetimes.co.uk/article/smok ... -psxg50hlt

Extract - 'hard-pressed to find such a reliable, cash-generative business'

[idpickering]

"Just topped up today. IMB is now 3.2% of my portfolio. With BATS at 5.2%, that's 8.4% in tobacco stocks."
Do any HYPers think this % allocation is too high?

For me, I don't think so . As I mentioned earlier in this thread, I'm at about 8.4% in tobacco shares, in capital value terms, in my 30 share HYP currently. In the past that level has been up to my self imposed sector maximum of 10%, and my No.1 bet. Since then, apart from a top up of IMB a few months ago, I've very much left them alone. Over time they've been overtaken by my other bets. I'm not intending adding to my tobacco holdings any time soon though.

Ian.

[Gengulphus]

"Just topped up today. IMB is now 3.2% of my portfolio. With BATS at 5.2%, that's 8.4% in tobacco stocks."
Do any HYPers think this % allocation is too high?

I like 5% / 10% / 20% limits of companies / sectors / groups of related sectors (e.g. 'financials' or 'utilities') - no real science behind that liking, they're just easy-to-remember round numbers that I'm fairly certain are in the right ballpark. So I would regard the IMB holding and the overall holding of tobacco shares as fine, but the BATS holding as marginally too big. Not by anything like enough to justify actively doing anything about it, though - it's just that I would take care not to top it up, and if it rose further, I might 'top slice' it back to 5% if it rose to 6%, and almost certainly would if it rose to 7%.

Gengulphus

[idpickering]

IMB gets a good write-up in this TMF item;

Could this stock better Imperial Brands plc for growth and income?

Imperial Brands (LSE: IMB) is many people’s idea of a growth-and-income champion. This FTSE 100 tobacco group delivers reliable earnings growth, while prodigious cash generation supports a generous and increasing dividend.

Today, I’m going to look at the prospects and current valuation of the company and at another blue-chip contender for the growth-and-income crown.

http://www.fool.co.uk/investing/2017/11 ... nd-income/

[Avalaugh]

The only thing that I don't like is how non adjusted earnings are actually less than the dividends paid, I'm wondering how sustainable the divi is if books are cooked

Cheers