[quote=the deal]BAT trades on a trailing PE of 8.39 and a dividend yield of 11.9%. I rate the company ACCUMULATE with a price target of Sh350 due to the fact that this set of earnings where partly inflated by a weak Shilling. The currency for East Africa’s biggest economy lost 20% in 2011. I’m also disappointed with the slow expansion in operating margins; management needs to do more in terms of saving costs going forward I expect fresh capacity at the Nairobi factory to be the key driver of growth. Other risks include increased competition from Mastermind Tobacco, taxes and Government regulation.
Rink
http://contrarianinvesti...11-earnings-my-analysis[/quote]
What would you say about the fact that they paid out all their profits as dividends? are their reserves that healthy that the can afford to do this?
The investor's chief problem - and even his worst enemy - is likely to be himself