BATS/IMB Comparison.Will BATS stay strong against IMB, or will they revert back to last decade's spread ranges?
LTH could improve return buy swinging between the two with some of holdings.
Not financial advice!
IMBBY trade ideas
IMBBY Ready For A Bullish PopLooking for a near-term bounce here for Imperial Brands. IMBBY with Two + years of bullish trading. Also, formed a bullish Pennant clearly outlined in price action. Risk-Reward on this looks solid, waiting for a pop higher for IMBBY then a retest below 22.50 support, then going to enter a long to try to capture that big move to the upside.
IMBBY needs to cross above the 200-day SMA (depicted in neon green), in recent trading the 200-day has acted as a very reliable trend resistance line and it must be surpassed before a major move to the upside is possible for IMBBY. Stop loss is firmly set at 20.00, right around the bottoms of the support trend areas.
IMBBY should work. Even in this volatile market.
IMBBY's winning characteristics: Cheap valuation, Solid balance sheet, high dividend payer, an international scope of business, and a line of products that have highly insensitive demand.
As always this is not financial advice. Good luck!
Puffing Away The PainHello friends. Smoking is a popular way to self medicate the sadness that can come along with a recession. And make no mistake, a recession is VERY likely. Polymarket, a prediction market where you can Bet On Your Beliefs, currently predicts a whopping 86% chance of a recession in Q2 of 2022. And for the entire year of 2022, a recession is almost a certainty.
Let's say a consumer is laid off from their job, and no longer cares about anything anymore. They figure that dying of cancer would be a blessing, an end to their suffering. They might as well try smoking, they reason. Maybe it will make them feel better. Now, it won't make them feel better, but it WILL get them addicted, which means a long term customer providing great profits for Imperial Brands! In essence, we view it as a consumer staple, because smokers will not quit smoking just because they don't have money for it. They will always find a way to get their nicotine!
Imperial Brands is a stock with a P/E GAAP (TTM) of 7.59 and potential for slow but steady growth. It's in the tobacco sector, a sector severely hated by retail traders. This hatred has caused the stock to have an extremely cheap valuation. Another sector that was recently hated to a similar degree by retail was the energy sector. They hated it because of it's poor momentum. That was basically their only real reasoning. Then they changed teams and now they love it since the momentum is back to the upside. The lesson? Weak momentum doesn't mean a weak stock. In fact, weak momentum is usually when you want to be looking for good deals. And we think that right now, Imperial Brands is a very good deal.
They are also offering a delicious dividend of 4.89% for long term investors, which we think they can afford to continue to pay off. On top of this, they are planning to launch a huge buy-back program. The genius of buying back stocks is that it will ignite momentum through increased demand for shares, which will cause retail investors to start getting excited, creating even more momentum, and so the cycle goes on, and from there we have the potential see a straight up bubble within the tobacco stock market just like the energy sector formed recently.
Our plan is to DCA into a position on IMBBY, and hold it until either the P/E expands substantially, or the price reaches our long-term target of $63.46. This position may take many years to come to fruition, but we think that it has an extremely high probability of playing out in our favour.
Thanks for playing.
IMPERIAL by name & nature - BUYREASONS TO BE BULLISH
Price just reclaimed the 50 MA and is hovering right at the 100 also (£1,817).
RSI on the 2 week chart recently turned bullish, coinciding with reclaiming the 50 MA.
Trend line + MA cross = Bullish Entry. These are my favourite trades when the two signals cross the threshold on the same candle. Double confirmation.
Further upside will see both cross above the 200 MA (the top of the purple channel at £2,575), which will further cement its place in a bull market.
Imperial Brands are currently paying out a 7.8% dividend yield. Fundamentally, investors wire going tol flock to dividend paying stocks en masse.
They have a price to earnings ratio of 7.27 which is very low by market standards. UK FTSE is trading at
The stress of a downturn in market, trade & geopolitical conditions is likely to increase people's dependency on the products they produce.
UK stock market is not over-leveraged, particularly not in value stocks like IMB.
Has already endured a 6 year bear-market.
Initial profit target is at £4.2k-£4.7k (the mid-point), which also coincides with it's prior all-time high. Here it will likely take a breather and form a cup and handle for a year or two (like April 2012 to April 2014).
Has the potential to approach the top of the channel at £7k to £14k in the decade ahead.
REASONS TO BE BEARISH
Across many other assets, I am seeing potential capitulation in stocks going into June/July this year.
It could retrace 10-20% along with more risky assets, but I suspect it will hold it's own for years to come.
Stop would be at £338 - which would represent a 33% loss. That would put-in a new lower low and likely lead to more downside and a negated bull-run.
SUMMARY
In times of market conditions and the stagflation that we find ourselves subjected to, IMB is a solid buy and a great risk-reward entry here. Despite it's low expected volatility, it will likely provide a decent dividend and return on investment. IMB has a chance of keeping-up and in fact exceeding inflation. That is not to be sniffed-at, with the meme stocks facing their day of reckoning. We'll keep an eye on this one, as this indicator has provided 2 entries at £1,671 and £1,770 recently. Enjoy and thanks for reading!
Imperial Brands long trade ideaWe covered a couple of tobacco stocks in one of our YouTube videos.
Now we see a good setup for LSE:IMB ; price > 50EMA, 50EMA>200EMA, characteristics of a strong uptrend. For a short term pay, 1:4 risk-to-reward; a buy at current level with a stop below the 50EMA, and a short-term target at 2244 GBX.
$IMBBY downtrend breakoutWith $MO taking off recently, $IMBBY looks like a good sympathy play that hasn't had its run yet. Nothing complex here, breakout and retest of 4 year regression downtrend and now reclaiming of an upturning 200 day EMA
#IMB Long at 1480 ahead of ex-dividend dateEnough is enough.
Tobaco is not in favour these days but #IMB has just cleared its EMA200 (long-term resistance).
Good setup emerged for the Long trade: Buy 1480, TP1 1635, TP2 1730, TP3 1820, SL 1410.
Additional reward is ex-dividend date on 26/11 (adds 48 per share).
IMB Imperial Bands - Bullish signsThanks for viewing,
I have only looked at the chart and a few details. I was just drawn to undervalued UK stocks after reading that Goldman Sachs views the GBP as undervalued (it is at 35 year lows vs the USD). Also, all the doom and gloom about Brexit will have caused shares to head lower than may be justified. To get the best value, I often hear you need to dive in when things look at their worst. Easy to hear, more difficult to do when real money is involved.
Anyway, if it all goes right, the rising GBP will be a tail-wind behind a rising share price. It's almost enough to justify holding fiat currencies.
The overall scenario looks to be turning bullish for IMB.
What I see as an ABC correction is coming to an end - although it just set a slightly lower low on the 1st of September. Looks like heading for 1154 - if so, I will have to re-assess my EW wave labelling.
Consistent dividends over 10% pa gross.
Its not a sexy industry so is likely to be "unloved" by investors. Institutional investors appear to have been offloading any and all investments that "aren't consistent with investor principles,"; oil and gas, some mining, coal, forestry, fisheries, livestock, alcohol, and tobacco etc etc. Doesn't leave much. I'm not saying tobacco is good, it does appear to be a declining industry (at least in the west). But, it is a consumer goods business, with an attractive return, and signs of recovery - it will do well in a recession.
Strongly Bullish RSI divergence evident (when a lower price low (or a series of these) is shown as a higher low on the RSI). These often precede changes in price direction.
Staying with tobacco; British American Tobacco is starting to look attractive as well.
Protect those funds - and those lungs.
Potential rise of 30% from the current price at 33.40Oversold stock is always interesting. To try this forecast might be not bad.
I just using a breakout technique that requires the verifying of two proper conditions.
First is the rising breakup of resistance 27.45 on monthly chart.
Second is the close of monthly green candle , that has broken the resis, above resistance quoted.
Chart sent is weekly.
Good outlook for oversold Imperial Brands?Imperial Brands has faced a long decline over the past few months. Now we see a retracement zone at current levels. I wouldn't be suprised if we could soar in the near-term due to very oversold conditions. The Money Flow index is indicating as a non-lagging indicator that buying parties are flowing into the stock.
One more leg up?This UK blue chip has had a really good run over the years and this analysis suggests that there may be one more leg up and now could be a time to buy.
