Gsk Share Discussion Threads

[alphorn] 16/8/2016 22:27

Richard - just look at how much GBP has fallen!!!

[richard98765] 16/8/2016 18:39

Good points thanks. Seems quite an excessive jump purely based on currency benefits but I'm a poor PI and know nothing ! May top slice this week and look to buyback 'if' it drops

[alphorn] 16/8/2016 08:43

Probably the only reason - mathematics. It has not moved in many other currencies.

[tim 3] 16/8/2016 08:33

Don't forget the pounds weakness Richard,probably the single biggest reason for the rise imo.

[richard98765] 16/8/2016 08:25

I'm average on technical trading but I can't see any pattern with the current chart. Fundamentals have not changed since Brexit so aside from divi (which we knew anyway), the recent boost can only be based on perceived safety reasons. As such I don't think it's got a ceiling until safety is felt elsewhere. I'll continue to hold for me but getting dizzy at these heights

[garycook] 16/8/2016 07:28

Someone is looking for a pull back. The market,and data will dictate where we go !!!

[philo124] 16/8/2016 07:21

The larger market maybe overbought imo.

[tradermichael] 16/8/2016 07:08

At the moment, 1700p+ looks likely, and its nice to have the strong dividend. However, my concerns are:
1. Is the dividend sustainable? At least, will it be maintained beyond the company's promise?
2. What impact will a strengthening pound (vs USD) have on the price? It was a big boost to see the Brexit effect on GSK's price, but is this reversible? (for example, impact of US election later this year).
3. Is the larger market oversold, and is it due for an Autumn correction?
4. I continue to hold a large amount of longer-term stock, but have been reducing and will only buy now on weakness, and that for short-term trades.

[garycook] 16/8/2016 05:21

You cannot get a better return than GSK atm,in the Pharma sector.AZN,has outperformed also.I think minimum £20 target will be achieved.Best Pharma by a long way.Great core holding in anyone,s portfolio.

[tim 3] 15/8/2016 22:30

Am in a similar position I think we will probably get a pullback but if you get out you risk being left behind if we don't and of course losing the dividend while your cash earns bog all.

[jadeticl3] 15/8/2016 20:29

I am a big holder of GSK shares and am delighted by this rise in SP, but I do not see the need to sell as I can, and do see them rising further. The point for me is what would I do with the money if I sell? What would give a better return?

[badtime] 15/8/2016 12:56

Another challenge at staying above £17 ..I'll hang on a bit longer

[andyadvfn1] 15/8/2016 09:12

A little intra day / week trading?

[tradermichael] 15/8/2016 08:53

OUT, 4216 shares @ 1704.62 ....... ;0)

[garycook] 12/8/2016 10:49

anhar,Good for you,and me too.I once tried CFD,s and got my fingers burn,t.Good HY,s companies are the way to invest,for long term growth and income.

[anhar] 12/8/2016 09:23

Naked calls are indeed a totally different idea, as you say. They are again though a trading strategy and personally I am allergic to anything involving attempting to trade for gain, as distinct from holding HY shares for income allied to the very rare trade and even that rare trade is done purely to improve income.

Right now for example GSK would have to be around 2,200p to match the FTSE yield and persuade me to sell. It's not so I won't.

All just my view, but like any strat if yours makes money for you over time, that's good.

The reason I wrote against covered calls is that it was being suggested that they are a virtually foolproof way of improving income, something I've heard repeatedly over many years, and I thought it needed the opposite view expressed here. I'm a pure income investor so am interested in anything that could improve income. But there are a lot of downsides to CCs as I discovered - to the extent that they weren't worth it in the end, not for me anyway.

I found long ago that I'm useless at trading shares for gain, let alone options, which is why I developed my purely income approach to equities. The paradox is that, although it's not why I do it, it has generated quite good gains long term.

[alphorn] 11/8/2016 16:56

anhar - you have your view. I have been doing this for nearly 20 years although now focus mainly on naked calls which is completely different!

[salpara111] 11/8/2016 15:30

Took my money off the table here at 1700 as I don't think I will see my 1770 target soon.
A good run but it does appear to have hit a brick wall at the 1700 level.

[wins73] 11/8/2016 14:16

Well said anhar

[anhar] 11/8/2016 12:50

As a purely income investor with a number of substantial holdings in big caps, I tried writing traded covered call options, many years ago because it seemed a simple way to improve income with little downside.

I did not find that it paid, on balance, on the promise of improving income over time. I wrote out-of-the-money calls and found that the costs were quite high.

The risk is that if the shares rise sufficiently, they will be called away thereby stripping you of any further gain above the strike price. In exchange you receive the option premium which is the whole point of it, but for me it did not beat long term buy and hold overall from an income viewpoint.

If the shares are called away, the cash has to be reinvested in another share, or the same one, to replace the div income lost. That involves costs and a forced trade which otherwise I would not have made because it made me breach my normal sell rule.

It works best for shares that don't rise much, stay level, or fall, so never get called. Then you keep the premium and the shares, but you can't know in advance which of your shares will act like that. Or, you can sell the option and thus avoid the shares being called away but that then becomes a trading strategy with all the hassles I don't want such as additional risk, constant monitoring etc.

It's one of those ideas that sounds attractive on paper, but in practice is a hassle, costly, risky, requires monitoring and far more in reality of a trading approach then merely enhancing income as it is sometimes portrayed, including here.

Personally, I want an equity income strategy with the absolute minimum of input work required. My existing very low monitoring method delivers that and covered calls did not improve upon long term income performance, quite the reverse I found. On top of that, although it's not why I invest in shares, it has a negative effect on long term capital performance too. The worst of both worlds with only the brokers winning.

[alphorn] 11/8/2016 09:59

Not surprising TM, it is just re-basing off last nights/todays fall in GBP.

[alphorn] 11/8/2016 09:57

Hi Action - the best is to look at Walbrook's site and call them if necessary. I use their phone services as good to talk to the guys and often they better the price although a bit more expensive.

[tradermichael] 11/8/2016 08:09

The fact that there was a strong spike before yesterday's close, and only a minimal drop at opening (ex div) suggests to me that it won't be long before this kind of support takes the price above 1700p ..... ;0)

[action] 10/8/2016 21:26

Hi Alphorn,

are covered calls trading is on line or you have to phone broker?
What are charges like?

[fangorn2] 10/8/2016 11:54

Cheers for the heads up..will check out the Option threads :)

I use TD and IG mainly.