It was stated from Affin Hwang Capital research in a Friday note that it remains cautious over prospects as the illicit cigarette trade looks likely to stay given enforcement actions that are insufficient to counter its growth. BAT current growth just be a short term relief, not sure about long-term.
My father works inside the legal industry and got inside new. Total legal industry volume shrank 10% from the previous year due to high level of illegal cigarette incidence. Not wise to invest in BAT in my opinion!
Too risky to invest long term for BAT. As long as government doesn't do anything to enforce the illicit cigarettes. It's aint gonna go far. 466m sticks (seized) vs 12b (sold) sticks problem - who wins?
BAT provide better dividend yield than FD, EPF and even AMANAH SAHAM !!!
With covid 19....sluggish economic......BNM have no choice but to cut another interest rate soon...mean interest rate for FD and others coming down again
BAT really provide an alternative for us for dividend yield !!!
Illicit market has doubled since the surge in excise duty in 2015 (33.5% in 2015 vs. 63% in 2019). now the shares might look okay but down the line? as long as illicit cigarettes are flooding the market, they will always record a loss at the end of fiscal year.
if you keep paying for the high tax in other ciggies but there are also multiple ppl buying illicit ciggies for RM5, easily the reason why BAT have to increase their cigarette price
dividend would definitely be higher if govt enforcement towards sale of illicit cigarettes actually went well. but not only there is lack of enforcement, the cigarette taxes are also high, making it easier for illicit & cheap cigarettes to slide its way into the market..
steady everyone, back to uptrend tmrw now that political scenario in country more stable liau...tempted to buy maybank instead of bat now with nxt paycheck.
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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....
gsi723
907 posts
Posted by gsi723 > 2020-02-23 16:01 | Report Abuse
wow... affin TP 11.50