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Imperial's chairman positioned for risk

The tobacco giant – and its chairman – could benefit from increased investor caution through 2018
January 4, 2018

Imperial Brands’ (IMB) chairman, Mark Williamson, was in the buyers’ circle in the run-up to Christmas, snaffling just under £250,000-worth of shares in the tobacco giant.

IC TIP: Buy at 3162p

The timing could be auspicious. Although the share price is 11 per cent down on this time last year, it was ‘risk-on’ for FTSE 100 constituents through much of 2017, with limited appetite for defensive plays. But with potential issues linked to market liquidity, if central banks turn more hawkish on monetary policy, expectations of a marked correction may tip the balance in favour of sin stocks such as Imperial.

The markdown is certainly difficult to fathom when you consider the progress the group has made through investment in new products to mitigate the decline in demand for traditional cigarettes, not least of which is the acquisition of UK-based Nerudia, a producer of e-liquid and novel nicotine delivery technologies.

Buys       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
Aggregated Micro Power Neil Eckert (ch)20 Dec 1729,0008524,6507,835,70018.142
Alliance Trust Christopher Samuel19 Dec 176,500749.548,71820,1900.006
Aviva Keith Williams20 Dec 1710,000503.550,35010,000<0.001
Beazley David Roberts18 Dec 1741,300485.7007200,59441,3000.008
Britvic John Daly (ch)18 Dec 177,000794.8555,64015,0000.006
D4t4 Solutions Matthew Tod19 Dec 1710,00013013,00010,0000.026
Direct Line Insurance  Penny James18 Dec 17135,983367.69499,996135,9830.010
Driver♛  David Kilgour (cfo)20 Dec 1750,0006834,00050,0000.093
Electrocomponents Bertrand Bodson19 Dec 1710,000620.4362,04320,0000.005
Electrocomponents Simon Pryce15 Dec 1710,000607.068860,70710,0000.002
Equiniti  Guy Wakeley (ce)20 Dec 1710,00028528,500121,3270.033
Franchise Brands David Poutney20 Dec 1750,8215025,4112,260,7912.908
Globalworth Real Estate Inv'sIoannis Papalekas (ce)15 Dec 17300,0009002,700,00023,941,54518.498
Globalworth Real Estate Inv's I Papalekas (ce)15 Dec 17272,6328852,412,79324,214,17718.709
Go-Ahead GroupPatrick Butcher (cfo)19 Dec 173,3001,52250,2267,6630.018
Gocompare.com  Dr Ashley Steel19 Dec 1747,833103.7549,62747,8330.011
Hiscox LtdColin Keogh14 Dec 179441,39013,12417,0950.006
Hiscox LtdAnne Macdonald14 Dec 171,5741,39021,88322,1850.008
Hollywood Bowl  Ivan Schofield14 Dec 1750,000204102,00050,0000.033
Hollywood Bowl  Laurence Keen (cfo)14 Dec 179,70620419,8001,492,0310.995
Imperial Brands Mark Williamson (ch)19 Dec 177,8763,149247,98119,1080.002
MedicX Fund♥Stephen le Page15 Dec 1758,00084.9749,28358,0000.014
MedicX Fund John Hearle14 Dec 1711,87084.2510,00043,8690.010
National Express  Chris Davies (fd)14 Dec 173,000367.2011,0163,0000.001
Ramsdens Stephen Smith19 Dec 1711,22717920,09643,1210.140
Ramsdens♥ Stephen Smith19 Dec 1711,22717920,09654,3480.176
RHI Magnesita NVJohn Ramsay19 Dec 172,1303,98784,9172,1300.005
RIT Capital Partners Hannah Rothschild20 Dec 172,5551,96050,07814,263,6959.182
SDL Glenn Collinson15 Dec 1714,500355.9951,61836,5000.044
Smurfit Kappa  Ken Bowles (cfo)19 Dec 171,6342,45940,17224,0000.010
Solo Oil Neil Ritson (ch)14 Dec 173,000,0003.75112,5004,650,0001.185
SSP♥ Per Utnegaard20 Dec 177,10067647,9967,1000.001
Thruvision  Dr Tom Black (ch)19 Dec 171,513,70915.49234,47411,349,4446.873
TP ICap Rupert Robson (ch)14 Dec 1710,000509.4950,94917,0000.003
U and I  Rupert Robson (ch)15 Dec 1725,00018145,25075,0000.060
Walker Crips ♥ Lim Hua Min20 Dec 1792,29142.238,9479,839,16323.333
Zotefoams Douglas Robertson20 Dec 175,41645924,8595,4160.012
Sells       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
Carnival Arnold Donald (ce)19 Dec 176,0005,083304,978532,6060.252
Derwent London Hon RA Rayne (ch)18 Dec 1710,0003,072307,2004,164,7033.731
First Derivatives Graham Ferguson (cfo)19 Dec 1722,6473,985902,483100,0000.392
Frenkel Topping†  Jason Granite14 Dec 17744,77258.5435,69200.000
GlaxoSmithKline♥Dr PJT Vallance18 Dec 1732,9741,309431,666139,3570.003
GlaxoSmithKline Dr PJT Vallance18 Dec 1720,0001,310262,088172,3310.004
Paragon Banking  Alan Fletcher19 Dec 1730,000495.45148,63550,0000.019
Safestyle UK Steve Birmingham (ce)15 Dec 171,400,0001602,240,0002,799,8463.381
Scholium  Jasper Allen (ch)19 Dec 1730,0005015,00072,0000.529
        
*Placing/tender/open offer ♥Spouse/connected party †Share buyback ♛ Sipp/Isa