At 245 its a buy as a value stock. Check this out

Price to buy= ((year high-year low)*40%)+ year low)

Therefore for BAT,
Best price to buy is = ((300-196)*40%)+196)
= 237.60
Today's price= 245
Difference= 3%

This screams BUY to me. The only issue is whether all these fake cigarettes in the market will mess up the beautiful dividend policy of this stock.

I now await opinions,suggestions or just regular bashing.

Oh and a quick one, its trading at an RSI of less than 30. If you follow the last 3 yrs trend, everytime this stock hits the 30 RSI mark it bounces right back up....wenye pesa nunueni I sing again.

@investor. Sorry to sound vague but I read it somewhere last yearon the net and apparently WB uses it. Now its only used to establish the best price to buy a stock which you have already decided would be good to hold. It helps to determine the entry point of an already favoured stock. Most investors use a more lenient percentage such as 60% in the formula. I only used 40% because WB uses that. Its a more prudent %. Ill look up the article/source and hit you up soon. In the meanwhile, read up on margin of safety. You will unearth even better formulas and ideas. All the best.

The Merchant
what does the 40% represent?

Margin of safety. The lower the percentage the more risk averse one is. I use 40% like the oracle of omaha (though rarely, BAT just fit this formula sooo well)

Thanks!!
see, everyday I learn something new..

I do not use [or support] BAT products but I like the dividend yield!

Do you have any idea how many families I support from my habit of swimming in Tusker???

@merchant hold on to your cash. BAT was overpriced under its standards, and due for a correction. Three things are not going well for the share currently.
1. Industry issues like counterfeits and claims of favouritism for MTK
2. Budget round the corner and excise on cigarretes expected to go up
3. The general bearish sentiments because of 2012, arab crisis, oil prices etc.
BAT has 2 distinct classes of shareholders: the institutions and the small time retailers. The institutions rarely sell, preferring dividend pickings while the retailers are more likely to react to factors such as above. The retailers have started reacting and the fall in price will only fuel the negative sentiment, causing further drops. The daily volumes rarely exceed 500 shares at such times. In conclusion if you want to pick small volumes, just wait as the retailers offload. I think 200 is possible during the year.