Volume for this few days say it all. Uptrend before QR, Uptrend remain after QR. Haters all gone now. Well done all the BAT supporters who hold tight at this moment. Happy investing :)
@investman1981 No worries. It is just a matter of time that you will recover your investment @ 15.50. In fact, your cost is low too & you will make $ too :-) My gain is quite substantial now & I am not selling as yet.
The Directors declared a fourth interim ordinary dividend of 33.0 sen per ordinary share at the Board of Directors’ meeting on 20 February 2020 amounting to RM 94,224,900 in respect of the financial year ended 31 December 2019 which will be paid on 18 March 2020 to shareholders registered in the Company’s Register of Members at the close of business on 6 March 2020.
Total legal industry volume increased by 8% this quater, BAT group volume increased 14%. This is indication of recovery. RM138million operation profit for this quarter alone, not many company can gain this good profit, who dare to say BAT lousy company?
Just do a rough estimated investment Calculation on dividend yield about BAT and KLCC where BAT has quite stronger fundamental business than KLCC:-
1) BAT’s quarterly dividend is about RM0.33 for a share at RM12.70;
2) KLCC’s quarterly dividend is about RM0.11 for a share at about RM8.10
So, a good investment worth of BAT per share price should roughly be : RM8.10 (KLCC) x RM0.33 / RM0.11 = about RM24.30
The share price of BAT dropped in the past a year was mainly due to increasing illegal cigarette market rate and inefficiency of custom mgt; if the gov takes a good actions to target custom mgt and other, the illegal cigarette market rate will reduce significantly and tax for gov will increase strongly that will make BAT price back to RM30 easily.
Analysed it on the basis of illicit smuggling % and the forecast going forward in relation to today’s closing share price of 12.20. The projected future profit & dividend yield, will give the guidance of future share price. When it was sold down to the recent low of 10.22, it was on the basis of lower profit/dividend and increased in illicit smuggling %. This QR is history but guidance to future profitability. Main focus is on illicit smuggling % and beginning to make curtailment inroads. YoY negative expected as illicit smuggling % cannot be reduced significantly in the short term. Not forgetting 2018 results can support a share price > RM30.
My triple average down strategy at average cost of 11 plus looks like a real bargain investment price now :-) All the previous negative noises enable the accumulation at extremely low value price :-)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
EngineeringProfit
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Posted by EngineeringProfit > 2020-02-20 15:44 | Report Abuse
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