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Now US regulators vow to ban menthol cigarettes ...

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idpickering
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Now US regulators vow to ban menthol cigarettes ...

#179613

Postby idpickering » November 12th, 2018, 8:21 am

...hours after revealing plans to curb sales of flavoured e-cigarettes - in a bid to stop young people smoking/

Menthol cigarettes are known for being harder to quit, likely because the flavour soothes the throat while injecting a hit of addictive nicotine
•The FDA announced plans on Thursday to ban flavoured e-cigarettes
•They will not ban minty vapes since those are popular among quitting smokers
•But now they reveal they will ban menthol cigarettes
•The ban could take two years to reach the market, the Wall Street Journal says


https://www.dailymail.co.uk/health/arti ... ettes.html

This might have something to do with the weak market opening sp's of HYP faves Imperial Brands and British American Tobacco, both down. BATS down 8% and IMB down 4%. A buying opportunity? This is why we diversify in our HYPs. :D

Ian.

monabri
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Re: Now US regulators vow to ban menthol cigarettes ...

#179616

Postby monabri » November 12th, 2018, 8:53 am

BATS was down by 11% at one point invoking an automatic suspension of dealing.

NeilW
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Re: Now US regulators vow to ban menthol cigarettes ...

#179634

Postby NeilW » November 12th, 2018, 9:40 am

Smoking and vaping are legalised addictive substances, and there are new cannabis markets opening up in the USA.

Both BATS and IMB will simply buy up the addictive brands in whatever people are smoking this week. It's a brand company with addictive products. Look at the multiple Facebook is on and compare.

idpickering
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Re: Now US regulators vow to ban menthol cigarettes ...

#179644

Postby idpickering » November 12th, 2018, 10:06 am

Could a mod please merge the two threads on the same topic? For me, I’m ignoring this and thinking longer term than today. What a buying opportunity.

Ian.

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Re: Now US regulators vow to ban menthol cigarettes ...

#179659

Postby BT63 » November 12th, 2018, 10:46 am

monabri wrote:BATS was down by 11% at one point invoking an automatic suspension of dealing.


Give it several weeks for things to settle (probably a short-term bounce as bottom-fishers buy, followed by a few weeks of fund and managed-client selling after broker downgrades) then BATS could be a good long-term buy.

dspp
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Re: Now US regulators vow to ban menthol cigarettes ...

#179688

Postby dspp » November 12th, 2018, 12:33 pm

BT63 wrote:
monabri wrote:BATS was down by 11% at one point invoking an automatic suspension of dealing.


Give it several weeks for things to settle (probably a short-term bounce as bottom-fishers buy, followed by a few weeks of fund and managed-client selling after broker downgrades) then BATS could be a good long-term buy.


It might be a good long term buy, or it might not be.

It's shareprice is back where it was in 2014. In the meantime anyone who bought it at 4000 in 2016 is feeling sore at 2600 now in 2018.

I agree it has a nice yield mind you.

dspp

BT63
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Re: Now US regulators vow to ban menthol cigarettes ...

#179763

Postby BT63 » November 12th, 2018, 4:11 pm

dspp wrote:
BT63 wrote:
monabri wrote:BATS was down by 11% at one point invoking an automatic suspension of dealing.


Give it several weeks for things to settle (probably a short-term bounce as bottom-fishers buy, followed by a few weeks of fund and managed-client selling after broker downgrades) then BATS could be a good long-term buy.


It might be a good long term buy, or it might not be.

It's shareprice is back where it was in 2014. In the meantime anyone who bought it at 4000 in 2016 is feeling sore at 2600 now in 2018.

I agree it has a nice yield mind you.

dspp


The news today won't put BATS' dividend under threat for at least several years, if ever.
With such a high proportion of the price of tobacco products being tax, tobacco companies only have to add a few pence to a packet to significantly boost their profit margin.

I'd take a punt on BATS for both long-term income and potential capital gains at £30 if I had a worthwhile amount of cash looking for a high-yield home. I'd probably buy half a holding at £30 and see if I could get the other half for less in coming months.

After an apparent 'shock' of the magnitude we saw today (which I think is grossly overdone) it's very common for the price to have a brief bounce and then slide even lower, so we might even see £25.

Unfortunately my HYP (not a textbook HYP) is now providing income so my ability to add new holdings is greatly diminished unless I sell something to buy something else, or unless I dip into the income buffer reserve (equivalent to ~1.5yrs of dividends).


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