A Very undervalued Dividend Stock hardly followed

[divmenow]

Does anyone follow Imperial Brands PLC (ADR) IMBBY?? Looks like a great stock with a great dividend. Currently sporting a 4.23% yield. They own brands such as Winston, KOOL, and Blue cigarettes. I think I may have to buy some. 

[DividendGarden]

No, haven't heard of it. The only tobacco I own is PM, and I've owned it for many years. It is an OTC stock, so that may scare some people away. Then again, so is Nestle.

[DividendDragon]

(06-13-2017, 09:38 PM)divmenow Wrote: Does anyone follow Imperial Brands PLC (ADR) IMBBY?? Looks like a great stock with a great dividend. Currently sporting a 4.23% yield. They own brands such as Winston, KOOL, and Blue cigarettes. I think I may have to buy some. 

I Just bought in on the LSE. I'm loving the cashflow and current 6% yield.

Just watch out as the p/e reported by some of the brokers - around 12 as it's missleading. The company consistently posts adjusted EPS far higher than the normal diluted EPS. I'm not an expert so don't understand why, here's the last 5years of EPS;



Does anyone have any idea as to why a company would consistently do this? I always thought Adjusted EPS was for 'one off/irregular costs'?

DD

[Kerim]

Quote:Does anyone have any idea as to why a company would consistently do this? I always thought Adjusted EPS was for 'one off/irregular costs'?

I've vented before about how frustrating it is to try and really get a handle on earnings. See here and here for a couple of good threads. Best you can do is discard what really seems like an aberration and otherwise try to use the same earning variant quarter after quarter (GAAP vs non-GAAP, adjusted vs non-adjusted, etc.) to get a sense of changes.

[MarcN]

Here are 2 excerpts taken from one of the Fastgraphs pages explaining the different types of earnings. Here's the Link
It seems that Mr. Chuck Carnevale favors using the operating earnings when assessing the fair value of a company.

Quote:Adjusted (Operating) Earnings – The problem with basic and diluted earnings are that they may not accurately or adequately reflect the health of the business or the underlying earnings power of the company, because of the potential inclusion of unusual items that are not expected to occur every year. Consequently, many companies will report “adjusted,” “non-GAAP” or “operating” earnings. Since this version of earnings excludes special items and nonrecurring charges, they are thought to better reflect or perhaps paint a clearer picture of the actual operating results of the respective company’s business. In other words, special items are excluded because they are not considered regular or constant expenses or benefits required for the day-to-day operations of the business.

Quote:... Experience has shown that this version of operating earnings usually presents the best correlation between earnings and stock price. In other words, stock price tends to track and correlate to operating earnings more closely than versions of earnings that also includes special items. ...

I would tend to look if "unusual" or "non-recurring" items are reported every year. In that case, they would not really be unusual after all and should be considered.

[ronn38]

I have a limit order on it @ $40.50 (but I think that train had left the station).
M* reviews it well--that's what put it on my radar.

R