What restriction? BAT downfall due to government failed to control illicit ciggy trade.

Agree here. THis one cannot be pinned on the government.
In fact, some other countries practice harsher restrictions on tobacco use.

Tobacco companies know this. Unlike us debating about the future of gloves, they fully understand the tobacco industry is shrinking.
Look at the strategy from the big tobacco companies, it has all been about expanding into adjacent markets. Like the acquisitions of vape companies as an alternative market, and trying to synergize their existing user base.


Yup. I don't see any other industries supplanting Tech.
The reason why they are so expensive is because of the nature of the business. They do not need to worry about market headroom for expansion. They literally move into other industries and disrupt them, taking market share in more and more industries. Whatever the traditional industries can do, Tech want to do it better.

You are not buying into a certain industry. You are buying a disruptor capable of moving into other industries. That is why it is priced the way it is.

Simple restrictions such as designating no smoking zones .... raising higher taxes on ciggies ...

Those restrictions are nothing. The main culprit is illicit trade. more than 65% cigarette consumed in Malaysia are illegal and that figure is highest in the world.

Pls blame gov for not giving more bpn
Klci is like no gas without BPN

... well... and why is that so? That's because of the ciggie tax the govt raises causes companies like BAT to raise their prices.... At those prices, it was natural a chunk chose to find the alternate source...

anyway... bottom line for BAT is .... profit is declining so rapidly and so is the dividends.

It's all over the news.
Tony has been trying to diversify out for some time now. Their new F&B chain Santan is in a few locations.
They are also trying to use their Tech platform to go against GrabFood and FoodPanda.

https://www.soyacincau.com/2020/12/29/tony-...ivery-business/

When trying to transition, you first need to make sure your new business catches on.
If Air Asia sees success in the tech space and captures market share, then you move into Phase 2 of the transition.

And if you have a strong tech platform, then you can try be an aggregator and try to beat Trivago at their game.

Don't just look at their primary business, good business move to where the money is.
Wriggley's chewing gum didn't start off selling chewing gum. They were a soap and baking soda company. Likewise, IBM didn't start off making computers.

In oecd countries, cigarettes tax is optimized for maximum tax revenue for public health expenditure. however, cigarettes tax in the bolehland is raised to benefit illicit trade.

It is quite likely unless they are all smaller investors with low capital.

You can see how they talk now and then about buying more shares on days when gloves are green, in the hope that that day will finally be the day the bottom has been set and the trend is reversed.
However, it is quite hard to catch a falling knife as they will know by now.

I am interested in picking up glove stocks (mainly the big 4) again, if:
1 The price has come down to a normal rate (max 100% above the pre-covid price range),
2 The bottom has been set.

Government rather increase TAX for CIGGS for BAT

but too lazy to cramp down in illegal cigs selling or grey imports.

This year will have been a great year to learn things about the stock market.
The question is now, if those lessons will be remembered in the future.

Gov also.lazy to track down those companies using pirated software lol.
Lelz

Flavour of the year. And where most of the excitement is.
Other industries have been talked about here and there, but the lack of big events in these areas means a dearth of posts.

One needs to look at the underlying business too. The tobacco business has many headwinds due to regulations and taxes. The trends have also shown that younger consumers are not resonating with smoking anymore. They move to vape or other products.

Investing is not as simple as buy and hold. It's more than that.

I like to test out suggestions.

For example, your statement.... is so, so common.
One hears it all the time.

Let me show you BAT.

Assume one just buy la. Never sell and wasn't afraid cos one is taught that in the long term dividends will help the investor recover from their cincai buy.

Right?

So in 2015. Buy at 60 bucks.

The dividends since then....

2015 -- 312.00
2016 -- 278.00
2017 -- 169.00
2018 -- 155.00
2019 -- 118.00
2020 -- 89.00

That's 1121.00 or RM11,210.00 in dividends

Impressive dividends.

But the purchase price is 60 bucks.
Current price of BAT? RM14.00

Loss = 60 - 11.21 - 14 = 34.79

A loss of 34,790.00 !!!!


( btw the lowest price recently for BAT was 9.26!)


6 years of holding ..... and hoping dividends will help cover losses ___________________________

Whuutt? Got la.. my ex company kena.. suddenly got few officers come in say wanna check computer software..


but here is msia, we can minum kopi tgr to settle issue

Pls ask them catch moar,
There are alot companies outthere still use pirated one

This post has been edited by theberry: Dec 30 2020, 04:18 PM

That part is so true .....

But for many glove holders here is not that case

Haha but minum kopi culture.. it wont solve the underlying issue..
But in BAT's case it is different..

Government can implement stricter borders and tax laws to catch these smugglers.. But I think gov turned a blind eye on it.


BAT suffers a lot of losses..

It wont happen right now.. maybe mid 2021 or end 2021.. but no pandemic no momentum..

This post has been edited by Bendan[520]: Dec 30 2020, 04:21 PM