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BAT @400
cnn
#1 Posted : Wednesday, August 08, 2012 2:39:06 PM
Rank: Veteran


Joined: 6/17/2009
Posts: 1,619
Is book closure for an interim dividend of 3.50 on Friday the only reason for this rise,too bad i vowed never to sell this one.
chiaroscuro
#2 Posted : Wednesday, August 08, 2012 3:47:43 PM
Rank: Veteran


Joined: 2/2/2012
Posts: 1,134
Location: Nairobi
Some how, despite the good returns from this stock, I don't feel comfortable about making profit from tobacco....
deadpoet
#3 Posted : Wednesday, August 08, 2012 3:52:13 PM
Rank: Member


Joined: 9/27/2006
Posts: 503
Do you feel bad for cows when you put on your leather shoes every morning? probably not....
maka
#4 Posted : Wednesday, August 08, 2012 4:15:56 PM
Rank: Elder


Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
deadpoet wrote:
Do you feel bad for cows when you put on your leather shoes every morning? probably not....

...and your comfortable comparing a human being to a cow?Sad
possunt quia posse videntur
madebe
#5 Posted : Wednesday, August 08, 2012 4:33:15 PM
Rank: Member


Joined: 10/7/2010
Posts: 251
Location: nairobi
BAT has never given a bonus in all the 14 years i have been in the market. Not split their shares. i bet if u do a total return it will be less than other stocks like kenol, bbk, stanchart etc
FUNKY
#6 Posted : Wednesday, August 08, 2012 4:41:05 PM
Rank: Veteran


Joined: 4/30/2010
Posts: 1,635
They might issue a bonus this year since the price has really skyrocketed!!
BGL
#7 Posted : Wednesday, August 08, 2012 8:24:03 PM
Rank: Veteran


Joined: 10/11/2009
Posts: 1,223
FUNKY wrote:
They might issue a bonus this year since the price has really skyrocketed!!


BAT pays out ALMOST all its net profit. I think that a bonus may not be a viable option. However, a split may happen in the future.
History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
VituVingiSana
#8 Posted : Wednesday, August 08, 2012 11:47:48 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,124
Location: Nairobi
maka wrote:
deadpoet wrote:
Do you feel bad for cows when you put on your leather shoes every morning? probably not....

...and your comfortable comparing a human being to a cow?Sad
He has a point.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Drew
#9 Posted : Friday, January 10, 2014 12:43:42 PM
Rank: Member


Joined: 1/13/2009
Posts: 36
What are the chances of a share split this year ? BAT it touching 600 Kshs !
VituVingiSana
#10 Posted : Friday, January 10, 2014 2:41:24 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,124
Location: Nairobi
Drew wrote:
What are the chances of a share split this year ? BAT it touching 600 Kshs !
BAT is unlikely to split their shares but have a very healthy dividend policy.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Gordon Gekko
#11 Posted : Friday, January 10, 2014 4:01:13 PM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
Drew wrote:
What are the chances of a share split this year ? BAT it touching 600 Kshs !

Why do companies split?
1. To encourage more public participation, when eyeing the market for more capital,
2. To unlock value for shareholders since the split stocks will be worth more than the unsplit one.

None of these seem relevant to BAT, they don't need more capital and their healthy dividend give sufficient value to its shareholders.

I would be surprised if they split. A bonus could be in the offing though, as it slightly reduces the price of the share.
Drew
#12 Posted : Friday, January 10, 2014 5:39:58 PM
Rank: Member


Joined: 1/13/2009
Posts: 36
Bonus of what ratio do you reckon ??
sparkly
#13 Posted : Friday, January 10, 2014 8:15:36 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Drew wrote:
Bonus of what ratio do you reckon ??

No Bonus, never heard of any since the dividend payout is usually 100% or more.

This was the first share i doubled my money on the nse (not counting Kengen IPO). Bought at 128 and rode it all the was to around 290.
Life is short. Live passionately.
BGL
#14 Posted : Friday, January 10, 2014 8:17:24 PM
Rank: Veteran


Joined: 10/11/2009
Posts: 1,223
Drew wrote:
Bonus of what ratio do you reckon ??


BAT distributes most of its net profit. You are day dreaming if you still expect a BONUS from BAT.
History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
guru267
#15 Posted : Saturday, January 11, 2014 12:25:16 AM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
BAT will only issue bonus shares if it needs to preserve profits for investment purposes!

With regards to a share split... I don't see that happening any time soon! I mean google shares trade well over $1,000 with no split in sight..
Mark 12:29
Deuteronomy 4:16
VituVingiSana
#16 Posted : Sunday, January 12, 2014 2:26:21 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,124
Location: Nairobi
guru267 wrote:
BAT will only issue bonus shares if it needs to preserve profits for investment purposes!

With regards to a share split... I don't see that happening any time soon! I mean google shares trade well over $1,000 with no split in sight..
How does a bonus preserve profits for investment purposes?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
guru267
#17 Posted : Sunday, January 12, 2014 6:56:19 AM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
VituVingiSana wrote:
guru267 wrote:
BAT will only issue bonus shares if it needs to preserve profits for investment purposes!

With regards to a share split... I don't see that happening any time soon! I mean google shares trade well over $1,000 with no split in sight..
How does a bonus preserve profits for investment purposes?


If the company needs to start retaining earnings for investment purposes they may issue bonus shares in lieu of cash dividends to keep shareholders happy!

Jubilee, Centum have adopted this strategy in the past!
Mark 12:29
Deuteronomy 4:16
VituVingiSana
#18 Posted : Sunday, January 12, 2014 5:45:29 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,124
Location: Nairobi
guru267 wrote:
VituVingiSana wrote:
guru267 wrote:
BAT will only issue bonus shares if it needs to preserve profits for investment purposes!

With regards to a share split... I don't see that happening any time soon! I mean google shares trade well over $1,000 with no split in sight..
How does a bonus preserve profits for investment purposes?


If the company needs to start retaining earnings for investment purposes they may issue bonus shares in lieu of cash dividends to keep shareholders happy!

Jubilee, Centum have adopted this strategy in the past!
Isn't it easier to NOT pay a dividend then spend the effort, time & cost to issue bonuses?

And give me numbers for BAT. What is the criteria used? If the dividend is Shsh 30 [2% Dividend Yield] so is the Bonus based on Par Value or on Current Price?

Berkshire Hathaway doesn't give bonuses nor dividends. Please explain.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
BGL
#19 Posted : Sunday, January 12, 2014 6:46:43 PM
Rank: Veteran


Joined: 10/11/2009
Posts: 1,223
BAT is still a darling of foreign investors.

BAT foriegn threshold breach. — Please note BAT has already surpassed the 75% theshold. Please ensure no foreign investor buys from Locals.
History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
guru267
#20 Posted : Sunday, January 12, 2014 8:23:17 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
VituVingiSana wrote:
guru267 wrote:
VituVingiSana wrote:
guru267 wrote:
BAT will only issue bonus shares if it needs to preserve profits for investment purposes!

With regards to a share split... I don't see that happening any time soon! I mean google shares trade well over $1,000 with no split in sight..
How does a bonus preserve profits for investment purposes?


If the company needs to start retaining earnings for investment purposes they may issue bonus shares in lieu of cash dividends to keep shareholders happy!

Jubilee, Centum have adopted this strategy in the past!
Isn't it easier to NOT pay a dividend then spend the effort, time & cost to issue bonuses?

And give me numbers for BAT. What is the criteria used? If the dividend is Shsh 30 [2% Dividend Yield] so is the Bonus based on Par Value or on Current Price?

Berkshire Hathaway doesn't give bonuses nor dividends. Please explain.


When shareholders are used to something you do not take it away unless you do not care about the share price!

I was merely pointing out that if BAT needed capital then they could replace the cash dividend with a bonus like plenty of companies have done in the past to keep shareholders happy!

Warren Buffet might be an astute investor but his method has never been the only method of doing things!


Mark 12:29
Deuteronomy 4:16
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