British American Tobacco: Why Do The Bulls Keep Getting This Wrong? (Archive)

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

• I have been the only Seeking Alpha analyst who has been right on British American Tobacco. Since my last article, the stock has generated -2.97% compared to the S&P 500's +6.32%.
• I retain my bearish bias as US Combustibles continues to post disappointments prompting lower-end guidance revisions along with loss of value market share.
• The illicit supply of e-cigarettes is a major headwind for BTI's New Categories. Here, the company is at the mercy of slow-moving and unaligned regulators.
• BTI's diversification strategy into other nicotine products is poor as it forces the company to continually encounter resistance and fight regulatory bodies every step of the way.
• As I had predicted, the stock continues to be a value trap. There are better dividend opportunities out there.

Read the full article here.