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Our opinion on the current state of BATS(BTI)British American Tobacco (BTI) describes itself as a "leading consumer goods company" - which is a euphemistic way of saying that they produce and sell an enormous number of cigarettes and related products worldwide. It is also the second largest company on the JSE after Naspers. In recent decades, cigarette companies have become increasingly oppressed. Their ability to advertise their products and even package them has been severely curtailed in many countries. They are seen to be exploiting an addiction which is clearly anti-social and very bad for the individual's health, and which regularly involves them in lawsuits for damages. BAT owns well-known brands like Camel, Peter Stuyvesant, Rothmans, Benson & Hedges, Dunhill, Pall Mall, Kent, and Lucky Strike. In an effort to get away from the negative perceptions of cigarettes, the company has diversified into "new category" products such as vaping and electronic cigarette markets, which it claims offers it a long-term prospect for growth. Recently, especially in the United States, these products have also come under the spotlight for health reasons leading to a drop-off in sales. As an investment, the company offers some attractions. Roughly 20% of the world's population still smokes - making a truly massive market. Setting aside our distaste for the business which BAT conducts, the share looks like very good value at current levels. This is one of the shares that has performed well and perhaps even benefited from COVID-19. The CEO says that he aims to double non-combustible sales by the 2023/24 year. It is interesting that BAT considers South Africa's illegal cigarette market to be the largest in the world. On 6th December 2023, Business Day reported that BAT had impaired its US operations by GBP25bn (R595bn) leading to a drop of 10% in the BTI share price. In its results for the six months to 30th June 2024 the company reported revenue down 8,2% with smokeless products accounting for 17,9% of revenue. Diluted earnings per share (EPS) rose by 13,8%. The lower revenue was caused by, "The sale of the Group's businesses in Russia and Belarus in the second half of 2023, with £385 million revenue included in the prior year; Lower organic Combustibles volume (down 6.9%) largely due to the challenging Combustibles market and inventory movements in the U.S. combined with the negative impact of the supply chain disruption in Sudan and the headwind on revenue as the Group exited a number of markets in APMEA (largely in Africa); and a translational foreign exchange headwind of 4.5%." The share now looks cheap to us on a P:E of 7,61.
JSE:BTI
by PDSnetSA
1
Our opinion on the current state of BATS(BTI)British American Tobacco (BTI) describes itself as a "leading consumer goods company," which is a euphemistic way of saying that they produce and sell an enormous number of cigarettes and related products worldwide. It is also the second largest company on the JSE after Naspers. In recent decades, cigarette companies have become increasingly oppressed. Their ability to advertise their products and even package them has been severely curtailed in many countries. They are seen to be exploiting an addiction which is clearly anti-social and very bad for the individual's health, and which regularly involves them in lawsuits for damages. BAT owns well-known brands like Camel, Peter Stuyvesant, Rothmans, Benson & Hedges, Dunhill, Pall Mall, Kent, and Lucky Strike. In an effort to get away from the negative perceptions of cigarettes, the company has diversified into "new category" products such as vaping and electronic cigarette markets which it claims offers it a long-term prospect for growth. Recently, especially in the United States, these products have also come under the spotlight for health reasons leading to a drop-off in sales. As an investment, the company offers some attractions. Roughly 20% of the world's population still smokes - making a truly massive market. Setting aside our distaste for the business which BAT conducts, the share looks like very good value at current levels. This is one of the shares that has performed well and perhaps even benefited from COVID-19. The CEO says that he aims to double non-combustible sales by the 2023/24 year. It is interesting that BAT considers South Africa's illegal cigarette market to be the largest in the world. On 6th December 2023, Business Day reported that BAT had impaired its US operations by GBP25bn (R595bn) leading to a drop of 10% in the BTI share price. In its results for the year to 31st December 2023, the company reported revenue down 1.3% and a diluted loss per share of 646.6 pence. The company said, "Strong volume led New Category revenue growth - driven by Vuse and Velo, with revenue from Non-Combustibles now 16.5% of Group revenue, up 170 bps vs FY22." In an update on 4th June 2024, the company reported that it was on track to achieve its FY24 guidance. The company said, "We are driving a further improvement in New Category profitability through our Quality Growth focus on a more balanced top-line and bottom-line delivery. In Combustibles, U.S. commercial plans continue to gain traction despite a challenging macro-economic backdrop; in AME and APMEA we gained volume and value share, with robust H1 pricing." The share now looks cheap to us on a P:E of 6.84.
JSE:BTI
by PDSnetSA
BATS RSI Divergence, EMA targets and Support/Resistance Zones BATS is a company where its financial performance and robustness is not reflected by it's share price, mainly owing to investor sentiment towards the sector it sits within and the fear of ever changing regulation of its products. It is currently generating £8.5bn in free cash flow, more than enough to pay the annual dividend and please any accountant that the company's operations still produces high margin returns (although this is less obvious in the accounts due to the non-cash impairment of its assets). From a technical stand point the chart depicts a favourable time to enter into BATS, with price currently consolidating at a weekly demand zone. Furthermore, there has been a clear divergence between price and the RSI which has been growing over the last year. The longer these build, the higher probability of a sharp reversal. The crossing of the 20 and 50 EMA on the weekly chart has been a trustworthy indicators of changes in trend, with gap between these two MAs beginning to close. I am expecting price to move sharply towards the 100EMA and short term supply zone at £26.80, resulting in the crossing of the 20/50 EMA, which will propel the price towards the first significant supply zone at £32. From here there will be a final push before the end of the year with the price testing the 5 year high. All this will happen in an impulsive 5 wave pattern. If £22 is retested and fails to hold as support than the likelihood is for further declines. As an investor, stop losses should be set at £21.50 and profits should be taken at £36, representing a risk to reward of 7.4. Disclaimer: I entered into a position here on 7th May 2024
LSE:BATSLong
by Doddle
1
BTI Setting Up Reversal into UptrendBritish American Tobacco has had a lengthy weekly, now price is looking to bottom then confirm the weekly low. We are looking for a swing low confirmation & a close above the 10 period moving average to confirm that we have left behing a weekly low. We have drawn a bullish Pitchfork which we would want to see guide price on the way up. We can see on the TSI that we have positive divergence while the RSI has touched the 30 level & is beginning to turn. A weekly low is fully confirmed when price closes above the green line. This line also confirms we have left behind a yearly low price if we close above it on a monthly basis.
JSE:BTILong
by runyamhere
Our opinion on the current state of BTIBritish American Tobacco (BTI) identifies itself as a "leading consumer goods company," a nuanced way of indicating its role as a major global producer and seller of cigarettes and related products. It ranks as the second-largest entity on the Johannesburg Stock Exchange (JSE), trailing only behind Naspers. In recent years, the cigarette industry has faced increasing scrutiny and regulation. Restrictions on advertising and packaging, along with the broader public perception of exploiting harmful addictions, have significantly impacted these companies, frequently embroiling them in legal battles over health-related damages. BAT is the proprietor of numerous well-known cigarette brands, including Camel, Peter Stuyvesant, Rothmans, Benson & Hedges, Dunhill, Pall Mall, Kent, and Lucky Strike. In a bid to mitigate the adverse perceptions associated with cigarettes, BAT has ventured into "new category" products like vaping and electronic cigarettes, seeing these as avenues for sustainable growth. However, these products have recently faced their own health-related controversies in the United States, affecting sales. Despite the ethical concerns surrounding its operations, BAT presents certain investment appeals. With approximately 20% of the global population still smoking, BAT operates within a vast market. Overlooking the moral implications of its business, the company's shares appear to offer substantial value at present. Interestingly, the company has seen a degree of resilience or even benefit from the COVID-19 pandemic, with the CEO targeting a doubling of non-combustible product sales by the 2023/24 fiscal year. South Africa's illegal cigarette market, considered the largest globally by BAT, represents another significant aspect of its operational context. On 6th December 2023, Business Day disclosed that BAT had recorded a GBP25 billion (R595 billion) impairment on its US operations, causing a 10% fall in its share price. For the year ending 31st December 2023, the company reported a slight revenue decline of 1.3% and a diluted loss per share of 646.6 pence. However, it highlighted robust growth in "New Category" revenue, driven by Vuse and Velo brands, with non-combustibles now constituting 16.5% of group revenue, marking a 170 basis point increase from FY22. Given these dynamics, and with a P:E ratio of 6.92, the shares of BAT currently seem undervalued.
JSE:BTI
by PDSnetSA
$JSEBTI - BATS: Will New Categories Usher In A Change In Trend?See link below for previous analysis. BATS released its FY'23 results and the market seems to like it. The main take-away for me is that the New Categories achieved profitability two years ahead of the target. That being said, margins are still very tight. The technical picture has not changed much as the stock is still trading downwards in a slight wedging pattern. Price is now meeting strong resistance and needs to breakout on generally large volume to give me some conviction that a new trend is underway. I am neutral at this point and will allow the market time to digest these final results.
JSE:BTI
by Loyiso_BlaqueSoros_Mpeta
the smoke is done with BTI- target hitBritish American Tabaco (BTI) Chasing the Smoke Signals: A Comprehensive Analysis of BTI's Price Indicators 1. Price Formation: The price has broken from an Inverted C&H price formation on a daily chart. 2. Moving Averages: The 7-day moving average (MA) is below the 21-day MA, which is a positive sign indicating short-term bearish momentum. 3. 200-day Moving Average is above the Price. 4. Thus, Mas 7<21<200 5. Relative Strength Index (RSI): The RSI is <than 50, indicating bearish momentum and potential further upward movement. 6. Price Target: 51678 Zcents
JSE:BTI
by Sahle
Chasing the Smoke Signals: A Comprehensive Analysis of BTI's PriBritish American Tabaco (BTI) Chasing the Smoke Signals: A Comprehensive Analysis of BTI's Price Indicators 1. Price Formation: The price has broken from an Inverted C&H price formation on a daily chart. 2. Moving Averages: The 7-day moving average (MA) is below the 21-day MA, which is a positive sign indicating short-term bearish momentum. 3. 200-day Moving Average is above the Price. 4. Thus, Mas 7<21<200 5. Relative Strength Index (RSI): The RSI is <than 50, indicating bearish momentum and potential further upward movement. 6. Price Target: 51678 Zcents
JSE:BTIShort
by Sahle
British American Tobacco Shifts its Business Away from CigaretteKey Takeaway British American Tobacco writes down $31.5 billion as it shifts its business away from cigarettes. Shares of British American Tobacco tumbled Wednesday after the owner of Camel and American Spirit cigarettes took an impairment charge of about $31.5 billion, mainly related to its struggling U.S. cigarette brands with the number of people who smoke in steep decline. In a financial update, London-based British American Tobacco said it is in the process of transforming its business from traditional, combustible products to “smoke-free” ones. Its goal is to get half its revenue from non-combustibles by 2035. Combustibles currently account for about 83% of its sales, according to the data firm FactSet. In 2017, British American Tobacco bought Winston-Salem, North Carolina-based Reynolds American Inc. for about $49 billion in cash and stock. Earlier this year, the Centers for Disease Control and Prevention released a survey that showed U.S. cigarette smoking in another all-time low, with 1 in 9 adults saying they were current smokers. In the mid-1960s, 42% of U.S. adults were smokers. Technical Analysis British American Tobacco Industries ( NYSE:BTI ) 5th Day Moving Average (MA) is 30.71, trading near the bottom of its 52-week range and below its 200-day simple moving average. BTI stock has a MACD indicator of 0.4, which suggests a buy signal. BTI stock has an RSI of 58, which suggests that the stock is overbought. Based on these indicators, a possible entry point for BTI stock is when the MACD crosses above the signal line and the RSI is below 70, indicating a bullish momentum and a reasonable price. A possible exit point is when the MACD crosses below the signal line and the RSI is above 70, indicating a bearish momentum and an overbought price.
NYSE:BTILong
by DEXWireNews
Our opinion on the current state of BTIBritish American Tobacco (BTI) describes itself as a "leading consumer goods company" - which is a euphemistic way of saying that they produce and sell an enormous number of cigarettes and related products world-wide. It is also the second largest company on the JSE after Naspers. In recent decades, cigarette companies have become increasingly oppressed. Their ability to advertise their products and even package them has been severely curtailed in many countries. They are seen to be exploiting an addiction which is clearly anti-social and very bad for the individual's health, and which regularly involves them in lawsuits for damages. BAT owns well-known brands like Camel, Peter Stuyvesant, Rothmans, Benson & Hedges, Dunhill, Pall Mall, Kent and Lucky Strike. In an effort to get away from the negative perceptions of cigarettes, the company has diversified into "new category" products such as vaping and electronic cigarette markets which it claims offers it a long-term prospect for growth. Recently, especially in the United States, these products have also come under the spotlight for health reasons leading to a drop-off in sales. As an investment, the company offers some attractions. Roughly 20% of the world's population still smoke - making a truly massive market. Setting aside our distaste for the business which BAT conducts, the share looks like very good value at current levels. This is one of the shares that has performed well and perhaps even benefited from COVID-19. The CEO says that he aims to double non-combustible sales by the 2023/24 year. It is interesting that BAT considers South Africa's illegal cigarette market to be the largest in the world. In its results for the six months to 30th June 2023 the company reported revenue up 4,4% with non-combustibles making up 16,6% of revenue. Profit from operations was up 61,4% as the previous period was impacted by the effects of the war in Ukraine. On 6th December 2023, Business Day reported that BAT had impaired its US operations by GBP25bn (R595bn) leading to a drop of 10% in the BTI share price. The share now looks cheap to us on a P:E of 7,97 and a dividend yield (DY) of 7,94.
JSE:BTI
by PDSnetSA
BTI Flash ViewThursday 06-December-2023, 06h30 British American Tobacco (BTI, 53198c). BTI's market update saw it's share lower by almost 11% on the day - it's biggest daily decline since 2019. There's plenty of opinion and commentary, so to differentiate, I'll present my brief manual view as well as the reading from the Tactical Trading Guide as of yesterday's close. Testing the lower boundary of parallel channel. The upper and lower boundaries of the channel connect the highs and lows of the price trend to reflect key accumulation and distribution levels.
JSE:BTI
by techpers