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# British American Tobacco: It's Still A Value Trap, But I'm Lifting My 'Sell' View (Archive)
- URL: https://www.huntingalphas.com/british-american-tobacco-its-still-a-value-trap-but-im-lifting-my-sell-view-archive-copy/
- Published: 2024-03-03T15:19:00.000Z
- Updated: 2026-02-27T09:45:48.000Z
- Description: British American Tobacco remains a cheap but catalyst-starved value trap, warranting only a cautious hold.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, BATS, Consumer Staples

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- My latest third 'Sell' view on British American Tobacco generated alpha of +4.40% once again vs the S&P 500\. But now I am changing my stance to a 'Neutral/Hold'.
- BTI's combustibles' volume performance woes continue, particularly in the US, driven by a secular demand decline, weak US consumer spending and loss of share from illicit substitute vapor products.
- However, a V-shaped rebound in consumer sentiment can abate some of the combustibles' volume decline.
- I acknowledge that the transition to non-combustibles is occurring faster than expected. As that segment hits profitability, the company is also creating a leaner and more productive workforce. Yet, margins delivery has been below expectations.
- Valuations continue to be cheap, but I still don't see a meaningful catalyst to drive a sustained turnaround in stock performance. I am awaiting a retest on the technical to resume a 'Sell' bias.

Read the full article [here](https://seekingalpha.com/article/4675569-british-american-tobacco-value-trap-lifting-my-sell-view?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*