Evil Diaries: When smoke gets in your buys

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Evil Diaries: When smoke gets in your buys

Yesterday’s Questor column featured Imperial Brands (IMB) as ridiculously cheap – at 1600p the PE ratio is 7 at most and the yield is 9.5%. But I took a precautionary glance at the balance sheet and it is slightly less encouraging in that nav is £5bn and tnav is Minus £11bn. Nonetheless Questor is right and this stock is ideal for an ISA. IMB will turn to buying in its own capital and support is surely assured. The stock was nearly £40 four years ago and touched £13 recently. This is cash flow nirvana.

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Six Hundred (SIXH) reported this morning and what with the forgiveness of USD2.2m of liabilities that arose through the US equivalent of furloughing and the terrific outlook for SIXH – the order book is burgeoning and current work flows being executed are very positive – SIXH is a strong buy below 20p. I paid 15p last week.

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The manager of New Star Inv Trust (NSI) sold out at 144p about fifteen years ago and, right now, they stand at 145p. It just takes time. However, tnav is now 200p and NSI offers gentle but positive scope this next ten years. Climb aboard.


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