Community

Share knowledge. Find answers. Ask questions.

Online Share Trading

Engage and learn about markets and trading online

Always delivers

Reply
Highlighted
Regular Contributor
It might be a terrible habit but always delivers !
0 Kudos
Reply
3 REPLIES 3
Regular Contributor
Thats cause companies like BTI are almost a monopoly and dominate the market and have sufficient stategies to counteract whatever challenges get thrown at them. Remember when cigarette companies were the biggest sponsors of sports ie Rothmans July and Benson & hedges cricket. They were banned from advertising through sponsorships and then eventually through TV. Stopped people from smoking in public areas (only designated areas). I think new zealand and/or Australia only allow cigarettes to be packaged in brown packaging. Some countries do not even display cigarettes on their shelves, countries like Canada. Volumes are down but they now producing E-Cigarettes. Cigarettes will always remain no matter that the world health organization says as government derives a lot of taxes through cigarettes and alchohol unless cigarette companies are forced to shut down which will never happen.....
0 Kudos
Reply
Highlighted
Super Contributor
But despite all the defensive qualities and the arguments one can raise about how good their returns are the fact is that the areas in which they operate are being pared down by regulation...and regulation is advancing faster then they can get new folk to join the death cult of smoking ..ergo its dying in front of you - along with its customers. They buy back shares and spend no money on making the stuff - so it all looks good - rather like the titanic a few minutes after hitting the iceberg....mene.... mene...its almost like a pref..little upside.. and no security
0 Kudos
Reply
Highlighted
Super Contributor
Yes, if you're looking to follow a trend, just watch what the bright guys at Remgro and Reinet are selling and what they are buying. Remgro unbundled Implats a few years back - Excellent move in retrospect, and Reinet are selling their BTI stake slowly but surely. It will take years, but BTI will eventually die a much slower death then most of their biggest retail clients. Still a good investment in my opinion for the next few years.
0 Kudos
Reply