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).