Gsk Share Discussion Threads

[cyberian] 01/5/2015 10:53

With the 83p Novartis funds committed to shareholders plus the 19p 1Q divi, one could argue that the present shares price is valuing the company at 1400p. Then reflect on the fact that the annual yield thereafter would be 5.71% assuming that the company continues to meet its own targets/goals. One can see from the recent FDA approvals that there is a fairly impressive pipe-line of vaccines/drugs, and further developments into genetic related issues which may well be a big future driver. There is also the issue of interest rates remaining pretty low in the US and UK, although there could be some defensive protection by the BoE if there is a run on the UK Pound..I somehow feel that hiking UK rates will be counter productive. It could be that greater political uncertainty may knock the pound briefly, although a hung parliament of one shape or another will limit extreme measures being taken imho. The country will adabt...but my point here is that GSK would remain a solid International leader in its field for some time to come. A 5% plus yield is very attractive even if one joins some analysts gloom which appears rather overdone. Best wishes for next week.

[toffeeman] 01/5/2015 08:37

1500 support - will it hold?.......

Is this an opportunity for a quick long with IG?

Nah feeling a bit of a coward today

[tradermichael] 01/5/2015 06:33

LONDON and SAN FRANCISCO, April 30, 2015 /PRNewswire/ -- GlaxoSmithKline plc (LSE: GSK) and Theravance, Inc. (NASDAQ: THRX) today announced that the US Food and Drug Administration (FDA) has approved BREO® ELLIPTA® (fluticasone furoate/vilanterol [FF/VI]) for the once-daily treatment of asthma in patients aged 18 years and older.

[tradermichael] 30/4/2015 09:33

Let's wait for the results ......

[dr biotech] 30/4/2015 09:18

We are down about 10% from the peak this month, so I wonder what the expectations are. Whilst I see this as a long term core holding, I am concerned about the short term direction. Most brokers are not overly positive - that can lead to poor sentiment and a weak share price

[madengland] 30/4/2015 08:32

Has enough time gone by for the results to surprise on the up? I suspect a better entry point coming.

[tradermichael] 30/4/2015 08:04

All on the next results and Novartis details now ...... ;0)

[madengland] 30/4/2015 07:09

I agree, and if there was any real legs in the rumour the share price would be moving tother direction. It's financial journalism only at this stage possibly.

[dr biotech] 29/4/2015 15:19

I just dont see a takeover here. Too many political hurdles, and I don't really believe it would make much of a business case either. I think that AZN was targeted more for tax reasons rather than any synergies.

We could do with a proper signs of sales growth. I don't really see the point in returning the money to investors unless they really have no idea what to do with it. Paying off the debt and allowing the dividend to be more sustainable would be a better use.

[chutes01] 29/4/2015 15:01

looking for recovery to over £16 ahead of election

[blueledge2] 29/4/2015 14:25

On the roller coaster again.

[cyberian] 29/4/2015 10:44

anhar..I tend to agree with you that the B share scheme/approach may well be redundant because of cost and flexibility (choice by shareholder) to receive/account for the capital return. On the T/O speculation (very)the comment seen on Yahoo and Bloomberg site does show strong underpin for GSK shares, on basic fundamentals at least. I am not sure what the current % holding there is in the US by their Institutions or PI's, but it must be sizeable, like BP and National Grid.

[atlantic57] 29/4/2015 10:36

Fair enough anhar but it would appear that they have known since 10/12/2014

[anhar] 29/4/2015 10:14

That's not correct.

The original release which referred to the B share arrangement was back in 22 April 2014. The full detail document was released on 20 Nov 2014.

hxxp://www.gsk.com/en-gb/media/press-releases/2014/gsk-plc-announces-major-three-part-transaction-with-novartis-to-drive-sustainable-sales-growth-improve-long-term-earnings-and-deliver-increasing-returns-to-shareholders/

hxxp://www.gsk.com/media/560424/gsk-novartis-circular.pdf

It was only on 10 Dec 2014 that the government announced their intention to change the law, presumably because B share schemes had become such a common procedure to avoid treating these payments as dividends.

[atlantic57] 29/4/2015 10:04

It seesm odd that a firm teh size of gsk did not know the law ws changing from 6 april.

They announced the b scheme just a few weeks a go.

[anhar] 29/4/2015 09:37

Not sure if it will be a special payment. Its likely that holders will get 'B' shares, worth 83p per existing share

B share schemes do not mean that a payment is not a special because what normally happens is the company immediately redeems the B shares for cash. Thus the investor does receive a special payment. The term "special" in this context simply means a payment in addition to the normal dividend.

The historical reason for this common but convoluted procedure, instead of just paying the cash direct to shareholders, is to offer the option for it to be treated as a capital repayment for tax purposes rather than dividend. So instead of it being income, it reduces the base cost of the holding for capital gains tax which is beneficial for most investors.

Unfortunately, GSK issued this guidance before they knew of the change in the law from 06 April this year which removes the option to treat such B share schemes as capital for tax purposes. They are treated as income now for tax, like a dividend.

Given this change, it remains to be seen how GSK will proceed with the special. It may as well just pay the money direct like a dividend and save the now pointless work and costs involved in the B share scheme.

[jadeticl3] 29/4/2015 07:19

Analysts can't be wrong with stories like this. If there is a 1% probability of the event happening they would still get their story out. If nothing happens--so what? If it turns out to be true they claim to be perceptive and worth following.

Analysts are financial story tellers.

[tompion] 28/4/2015 17:15

Agree TM but as you can get your broker to sell them immediately it amounts to the same thing for me.

[tradermichael] 28/4/2015 13:04

Not sure if it will be a special payment. Its likely that holders will get 'B' shares, worth 83p per existing share

[tompion] 28/4/2015 12:25

I think the xd date has not yet been fixed and current buyers will get the special payment - not a great fan of these schemes myself.

[tradermichael] 28/4/2015 11:29

treble: Its associated with the deal with Novartis:

Capital return
GSK plans to use net after tax cash proceeds of $7.8 billion to fund a capital return of £4 billion to shareholders following completion of the transaction. This return is expected to be implemented through a B share scheme in 2015, subject to approvals. Specific details related to the execution of the B share scheme will be sent to shareholders in due course.

[cyberian] 28/4/2015 11:17

TM..saw that the other day...limited application but sets a potential train of additional benefits across other genetic situations. Really pleased on the release today of the up-date on the shingles success level over an extended period..97.2% is excellent and I had mine about 2 years ago with no side effects/issues. This was a precautionary measure but in this area the application will be significant..the trial was extensive with many participants on a fairly global basis. So 1 in 3 may develop shingles over 50 years so with other vaccines in the pipe-line prospects continue to appear favourable for GSK.

[treble in 1999] 28/4/2015 11:08

I am thinking of buying here based on the divi policy.
I read something earlier about a special 83p divi, but cannot find any further information.
Can anyone enlighten me or have I misread something?