I concluded my last post following the full year results:
"Given the decent share price appreciation over the past year combined with top ups to several of my investment trusts which have significant holdings of IMT, I am reaching a point where I will become too overweight with this share. I will therefore monitor and may sell if the price continues to rise over coming months".
|2 yr comparison v FTSE 100|
(click to enlarge)
Of course, these trusts also hold Br. American Tobacco with even larger weightings so the combined effect takes me to a level of income from such holdings that is above my personal comfort zone.
Other aspects which may or may not become problematic are falling revenues and increasing debt. The debt will further be increased to fund the acquisition of the brands from Reynolds later this year.
Mr. Market was kind enough to make an offer today of £30.75 which I was happy to accept. I will also receive a further 89.3p final dividend next month. This will make a total return of just under 40% since purchase.
The sale proceeds have been recycled into a further holding in New City High Yield trust with a yield of 6.6%.