trade of the month
Naspers v BAT: Which JSE giant is smoking hot?
British American Tobacco (BAT) and Naspers are poles apart when it comes to operating environments, but in the investment world it is the risk/reward merits of companies that really count. Right now, the relative merits of the two companies put Naspers as a "buy" and BAT as a "sell". Naspers has the wind in its sails, thanks in large measure to its 34% stake in Chinese online giant Tencent, while BAT faces a serious risk to its profitability. Over the years BAT, which owns brands such as Dunhill, Kent, Lucky Strike, Pall Mall and Rothmans, has overcome obstacles ranging from class-action law suits to health-risk warnings on cigarette boxes. But it may not be able to avoid heavy financial damage from the latest challenge. Bearing down on its £14.75bn annual revenue is an onslaught from the US Food & Drug Administration (FDA). FDA commissioner Scott Gottlieb dropped a bombshell on the US tobacco industry in a speech on July 28. "Tobacco use remains the leading cause of preventable dis...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.