Possible Swing trade for $BTI if it hits $35
$35 seems to be a strong support level for British American Tobacco, will be looking to sell some puts or go into a long position if it falls to $35 and below. Also earnings at approximately $4 per share will provide great support as it will be trading at p/e of 8.75 which is extremely cheap for a global consumer defensive business growing at 2-3% EPS. Additionally as its a UK based stock listed as an ADR in the United states, there would not be the usual 30% US withholding taxes on BTI's dividends which improves its overall total return profile.
Total expected return (1 year time frame if it returns to 15X EPS multiple)
= 8% ($3 per share dividends) + 3% EPS growth X 66% (possible revaluation tailwind if revert to 15X multiple) = 79% total annualized return
Total expected return (5 year time frame if it returns to 15X EPS multiple)
= 8% ($3 per share dividends) + 3% EPS growth X 11% (possible revaluation tailwind if revert to 15X multiple) = 22% annualized CAGR return for next 5 years
Total expected return (1 year time frame if it returns to 15X EPS multiple)
= 8% ($3 per share dividends) + 3% EPS growth X 66% (possible revaluation tailwind if revert to 15X multiple) = 79% total annualized return
Total expected return (5 year time frame if it returns to 15X EPS multiple)
= 8% ($3 per share dividends) + 3% EPS growth X 11% (possible revaluation tailwind if revert to 15X multiple) = 22% annualized CAGR return for next 5 years
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.