Gsk Share Discussion Threads

[hydrogen economy] 07/2/2019 07:09

Don't know this posted twice, repetition deleted

[hydrogen economy] 07/2/2019 07:09

Broadgreen

As you say Div was very well covered by FCF in 2018 (indeed Q418 FCF at 3.3b almost covered the FY divis),but it was distorted by one offs :-

-Reduction of inventory balances
-favourable timing of payments for returns and rebates
-reduced legal settlement costs and restructuring payments,
-lower capital expenditure
-increased disposals of intangible assets of £256 million

But
Profits expected to drop again next year and one-offs could well go the other way.

The number of deals being done means lots of one-off costs so I think no certainty of a rise in 2020, we can only watch and hope.

[xxxxxy] 07/2/2019 03:39

Glaxo hunts more deals to stay competitive, Walmsley says



GlaxoSmithKline strategy revamp and shingles drug help boost earnings

[zicopele] 06/2/2019 17:31

Net debt has increased from 13bn to 21bn.

We better start generating bigger profits.

[jadeticl3] 06/2/2019 16:55

Can’t see why any of us is not delighted at the share price movement over the last two days, except anhar, of course, to whom it does not matter!

[badtime] 06/2/2019 16:40

You must have said the same thing now over ten times in January..why?

[wbecki] 06/2/2019 16:10

Emma Walmsley, CEO, GSK, summarises our performance in 2018

[tim 3] 06/2/2019 16:08

Looks like another test of 1600 on the cards.

[steeplejack] 06/2/2019 15:43

Don't worry about it,such concerns are discounted in the current rating.

[zicopele] 06/2/2019 15:38

No higher dividends any time soon.

Major investment in drug discovery required and debts which are extremely high.

[broadgreen] 06/2/2019 15:32

I'm a bit puzzled by the following - maybe someone better at deciphering financial statements can shed some light:

2018 dividends cost £3935m

Aim is to build Free Cash Flow/Dividend cover to 1.25x - 1.5x before raising the dividend. That implies FCF of £4918m-£5902m before divi can be increased.

But 2018 FCF was £5692m. Almost at the top of the targeted cover range. Does this imply higher dividends soon, despite the forecast unchanged 80p dividend for 2019?

[beckers2008] 06/2/2019 15:22

GlaxoSmithKline gaining 0.3 percent to 1.527 pence after the British pharmaceutical laboratory announced Wednesday that its pre-tax profit had more than tripled in the fourth quarter.
The Group also indicated that generic products of its competitors might does not affect its results of 2019 as much as some anticipated it. Jefferies, the market should appreciate the goal of the group to a drop of 5% to 9% of earnings per share at constant exchange rates this year, as many feared a double-digit decline."Current consensus lies just below the middle of the range for earnings per share, which indicates that it should evolve in a limited way", noted analysts at Jefferies

[essentialinvestor] 06/2/2019 15:19

You're made off strong stuff Monty, even my cats won't go out today.


Phil, that might be a good short term move.

[montyhedge] 06/2/2019 15:10

Just back from golf, superb, 1635p here we come.

[steeplejack] 06/2/2019 14:48

Stock has broken through $40 in the USA,highest level in a couple of months.The USA will ultimately dictate how the stock moves.

[alphorn] 06/2/2019 14:39

A quick scan of the balance sheet has two big movements - the derecognition of non-controlling interests and borrowings. Linked to the JV.

[philanderer] 06/2/2019 13:46

Yes, Merrill Lynch have upgraded VOD to 'buy' this morning. They reckon a one-third cut in the dividend is now priced in.

Top sliced 10% off GSK a few minutes ago.

[steeplejack] 06/2/2019 13:37

Slowly but surely a lot of the apparent high yielders are being wormed out.Jeffries thinks Vodaphone will have to cut the dividend in due course,now on a historic yield of over 9%.Thus,Glaxo forecasting a maintained dividend for 2019 puts it in the safe yield camp prospectively yielding over 5%.Makes Glaxo a very sound investment in 2019 (despite the dip in earnings this year)if you care to look longer term.

[ny boy] 06/2/2019 13:15

Buy these pesky dips and pull backs Sir!

[abdullla] 06/2/2019 13:13

Who sold before the results ?

[tradermichael] 06/2/2019 12:59

Yes, Anhar, as if that was the main representative news! (and its hardly 'news' - this has been heralded for over 2 years)

[nimbo1] 06/2/2019 12:45

Computer generated nonsense probably tm

[philanderer] 06/2/2019 12:44

Yes , that was a quick buy from a non-exec director :-)

2,926.421 @ 14.95p