[quote=the deal]BAT trades on a trailing PE of 8.39 and a dividend yield of 11.9%. I rate the company ACCUMULATE with a price target of Sh350 due to the fact that this set of earnings where partly inflated by a weak Shilling. The currency for East Africa’s biggest economy lost 20% in 2011. I’m also disappointed with the slow expansion in operating margins; management needs to do more in terms of saving costs going forward I expect fresh capacity at the Nairobi factory to be the key driver of growth. Other risks include increased competition from Mastermind Tobacco, taxes and Government regulation.

Rink http://contrarianinvesti...11-earnings-my-analysis[/quote]

Under competition also note that PMI with its flagship Marlboro is getting into the market slowly en surely currently being distributed by Maxam ltd. Walk into any Nakumatt Today and you will find Marlboro giving a Dunhill a run for their money. on another Note Japan Tobacco are producing Benson and Hedges just across the fence TZ and with the markets opening up that will be new competition right there. BAT has the rights to produce B&H in Kenya but they are sitting on the license to give some breathing space to their products.. that may not work for long..