Is British American Tobacco A Value Trap?
Posted: Sun Dec 16, 2018 3:51 am
BTI has a solid 8+% dividend. From the Value Line Report, it's debt is less than its equity. Stable cash flow. International sales.
A menthol ban scare is current but it seems oversold. The recent buyout of RAI seems to also have an influence on the share price. It had a recall of a vaping product, I believe, but this seems a small percent of their overall sales.
Some thing I have noticed is that no insiders seem to be buying it unless through DRIP or "EX" means buying.* Yahoo finance has a long thread which details some potential problems with debt being taken on to buy RAI but the debt:equity seems reasonable from the Value Line report. Interest coverage stands at 6.2x, so it's reasonable.
I know I'm missing something but what is it? This has been my biggest loser and I'm curious to buy more but I want to find out what's there that I'm not seeing.
*https://www.stockopedia.com/share-price ... -dealings/
A menthol ban scare is current but it seems oversold. The recent buyout of RAI seems to also have an influence on the share price. It had a recall of a vaping product, I believe, but this seems a small percent of their overall sales.
Some thing I have noticed is that no insiders seem to be buying it unless through DRIP or "EX" means buying.* Yahoo finance has a long thread which details some potential problems with debt being taken on to buy RAI but the debt:equity seems reasonable from the Value Line report. Interest coverage stands at 6.2x, so it's reasonable.
I know I'm missing something but what is it? This has been my biggest loser and I'm curious to buy more but I want to find out what's there that I'm not seeing.
*https://www.stockopedia.com/share-price ... -dealings/