British American Tobacco (BTI:JSE)
On a relative basis:
The BTI/J200 relative price movement is currently -2.41 standard deviations from its 250-day linear trend line. We would expect the BTI/J200 relative price movement to correct towards its linear trend, i.e. BTI to outperform J200, over the near to medium term with a high probability.
The share price has pulled back since the FDA announced their plans to curb tobacco use in the United States by reducing nicotine in cigarettes to non-addictive levels and also assess the roles on menthol cigarettes to attract young smokers. These measures will take some time to implement and won’t have an immediate impact on sales. I believe it’s a good buying opportunity at the moment.
credit: Graph Provided by Sharenet Advanced Online Charts
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Analyst and Securities Trader
Daniel is a full-time analyst and securities trader, and is responsible for equities research across industries. Although he grew up in a small town in the Klein Karoo, Daniel has always been interested in both locally and internationally traded companies. Daniel has been actively investing and trading on the JSE and other global exchanges since starting his Bcom Investments Degree at the University of Stellenbosch, which he completed in 2014 . During his studies, Daniel worked as an intern at Kruger International in Johannesburg in 2015, gaining valuable experience from Hein and Mia Kruger. He is currently a CFA candidate.