Gsk Share Discussion Threads

[anhar] 19/3/2015 15:26

I don't look back and if a share I've sold goes on to do well, then so what? That's of no concern and is not "getting it wrong". I sold in order to increase my income and if I achieve that, then I've got it right.

Getting it wrong would occur when I fail to increase income by reinvesting the proceeds of a sale in a new HY share. That can happen because using shares for income is a risk business. No guarantees that the new share won't slash divis.

But over the very long term I've been doing this, I've got it right far more often than wrong because the long term trend is for divis to increase, even though there will be some blips along the way.

[dr biotech] 19/3/2015 15:14

How often though do you get it wrong? I remember a couple of years ago you said (with Aviva) that changing the CEO was of little consequence. He then slashed the dividend making it a "sell" by your criteria, but he has sorted out the previous CEOs mess and the share price has subsequently doubled.

Must admit I am moving away from holding individual shares and have much more in trackers and managed funds. I decided about 18months ago that the likes of Woodford are better than me at picking shares. Two years ago I had perhaps 5% in a FTSE tracker with no funds. Now they probably make up 50%

[anhar] 19/3/2015 15:04

Yes it is indeed relative. Relative yield is the whole point of my approach.

You're right that a cut divi could trigger a sale but only where the resulting yield falls sufficiently. In practice that is far rarer than a sale signal from a rising share price/falling yield.

That's because what typically happens with a divi cut is that the yield remains quite high due to the price falling. Often, the new yield post-cut is actually higher than it was before, as the price falls by a greater proportion. So no sale signal.

Of course my income from a share that cuts divis would be lower than before but that's the risk I take and is why my port. is highly diversified. I fully appreciate the risks but I've been doing this for decades and have delivered rising income, though with the occasional year on year drop in really bum years of widespread divi cutting, plus good gains though I'm not here for that at all.

[toffeeman] 19/3/2015 14:55

Or declere a div of 34p at a price of 1000!!!!

It's all relative

[anhar] 19/3/2015 14:54

Yes but it is not very often. Doesn't matter because I invest in shares purely for income, capital movements are of little interest.

I'm not looking to sell but if a share's yield drops to match the FTSE100, I can sell and reinvest in a new HY share which boosts my portfolio income. That usually delivers a good gain too but as I say, that's not why I do it.

[sicker] 19/3/2015 14:49

Do they ever? :-0

[anhar] 19/3/2015 14:44

News flags now working again on the portfolio pages.

I can go back to sleep now, waking up only when any of my HY shares reaches the market yield which is my exit signal.

In the case of GSK, it will have to hit 2,326p on a divi of 80p to match the present FTSE100 yield of 3.44%. Nowhere near that for the time being.

[sicker] 19/3/2015 12:13

I think he/she meant, "clearly not so, good news" ;-)

[brulot] 19/3/2015 11:35

jadetic13 I meant good news in that the share is motoring despite no date for the distribution. Hopeful of 1800 by the Autumn but Europe worries me so always resetting targets despite liking and needing the income.

[jadeticl3] 19/3/2015 11:06

Brulot, what do you mean by "clearly not so good news"? Just now it seems that almost everything is good news for GSK (unlike much of 2014!)

[tradermichael] 19/3/2015 10:36

The company has said that it expects to close the Novartis deal by the end of the first half of 2015.

[brulot] 19/3/2015 09:14

Thanks sicker, just wondering if some of the recent strength is due to an imminent date. Clearly not so good news.

[sicker] 19/3/2015 08:43

brulot, no date set as yet but possible news in the not too distant future.

[brulot] 19/3/2015 08:35

Sorry if this has been covered but when is the cut off date for the special dividend.

[harriiiiddda] 19/3/2015 08:09

Should hit 1700 pretty quick!

[madengland] 19/3/2015 07:29

Yes good spot, up over 3% on nyse. Wonder what today beholds....

[solomon] 18/3/2015 22:55

Continued rising on NYSE. Even accelerated.

[philanderer] 18/3/2015 17:29

18th march Morgan Stanley overweight tp 1800p

reiterates

-----------------------------

"3 Big-Cap Bargains Too Good To Miss: GlaxoSmithKline plc, Banco Santander SA And Royal Mail PLC"

[philanderer] 18/3/2015 17:21

FDA Review Of GlaxoSmithKline Asthma Drug Shows No Safety Problems




FDA Looks at New Use For GlaxoSmithKline COPD Drug

[dr biotech] 18/3/2015 16:07

Its only worth selling if you have something better to put your money in.


I wonder how many of these I actually own. I have about 500 that I own directly, but its probably double that if you count my holdings in Woodford and trackers etc. My average is about 1500p so including the dividends over the last couple of years they have been good but not spectacular. One of my better picks.

[madengland] 18/3/2015 15:54

Yes it's a very likely option!

[woodhawk] 18/3/2015 15:39

And what would u do with the proceeds? Lose it on some other share? Get a pitiful rate of interest from your bank. Let it ride, and snowball those divis... that's the way to serious gains, imo.

[madengland] 18/3/2015 15:27

It makes me wonder if I should have a sell some or all target wood hawk. As much as I like the income, sometimes locking in a gain can be tempting. Nice conundrum

[woodhawk] 18/3/2015 15:25

Me too, madengland, I only became a GSK investor 5 months ago. It's my largest holding too. Bought primarily for the divi. Cap gain excellent bonus thus far.

[madengland] 18/3/2015 14:27

Have for to admit I am immensely pleased with my GSK investment, share price + divi is cracking