Imperial Investment Goes up in Smoke

The Week: Morningstar columnist Rodney Hobson plans to pack up tobacco stocks, but the outlook is bright for Sainsbury's and Vodafone

Rodney Hobson 27 September, 2019 | 9:35AM

cigarette

It smacks of carelessness when two nasty profit warnings come out simultaneously but investors, especially incurably optimistic ones like me, should not blind themselves to the uncertain times we live in. I don’t feel that the London stockmarket on the whole is overvalued, but there are always individual stocks that do not justify their high rating.

Packing up on Tobacco

Tobacco company Imperial Brands (IMB) slumped 13% to stand below 1,800p on a warning that revenue for the year will grow at only 2% and earnings per share will be flat. As recently as February the shares traded at 2,700p.

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About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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