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Post by steadyeddy on May 6, 2024 20:37:58 GMT
Read a negative article on BAT’s amortization of its cigarette brands. Essentially they are devaluing them to zero over 10-20 years, and will be taking a financial hit every year until then. Thinking of selling my holding and taking a small loss. The future just doesn’t look good. Cigarette smoking is still so widespread in Europe, the Middle East, and Asia, I can hardly believe that it’s all really going to disappear? Amortizing/depreciating the asset values should be a good thing, right? It serves as a corporate tax deduction. I am not sure I would sell just coz of it.
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Post by chang on May 7, 2024 5:04:45 GMT
They took a $32 billion write-down - yes I suppose it’s a tax write-off as well, but they’re kind of saying that their business value is going up in smoke. Doesn’t seem like a great investment on the face of it.
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