Gsk Share Discussion Threads

[mj19] 26/10/2017 11:16

Guys she should have cut the divi and then got the company in order and stronger over time. What will happen after 2018 and the divi isn't guaranteed

[montyhedge] 26/10/2017 11:13

They won't cut the dividend CEO know its the death nail for there job and they would be out the door. Fund managers would see to that.
Free cash flow easily pays the dividend.

[wormhasturned] 26/10/2017 11:04

This co. is going to have to cut the dividend, it is barely covered by earnings, if they are thinking of buying more consumer healthcare businesses they are going to be well strapped, coupled with a potential 10bln put option that might be enacted by a recent purchase. And with further investment in research, the dividend is very vulnerable down the line, also Trump’s crusade against drug prices, all you dividend hunters, remember when it goes ex. you simply lose a load more points on the share price, further to fall!

[gateside] 26/10/2017 11:01

And BP. too

[montyhedge] 26/10/2017 10:31

I think all blue chips should pay a dividend every 13 weeks, HSBC and Shell do.

[montyhedge] 26/10/2017 10:30

Trader
Only a idiot would not know what I mean. Dividend cheque on the doormat every 13 weeks, nice.

[gateside] 26/10/2017 10:28

They probably should not have sold Lucozade and Ribena in 2013.

[tradermichael] 26/10/2017 09:57

It wasn't a lifetime ago that GSK SOLD a lot of Consumer Healthcare products TO Pfizer.

[tradermichael] 26/10/2017 09:56

Ermm, not exactly, 5.7% per annum - only 1.425% every 13 weeks ...... ;0)

[montyhedge] 26/10/2017 09:49

Found a floor, 5.7% paid every 13 weeks one for income at this price.Back over 1500p on a couple of positive rns.

[philanderer] 26/10/2017 09:46

updated:

26th oct HSBC buy tp 1925p
26th oct S&P Global hold tp 1510p
26th oct Liberum buy tp 1760p
26th oct Deutsche hold tp 1610p
26th oct JP Morgan Caz neutral -
26th oct Oddo BHF neutral -

25th oct ++++ Q3 results ++++

[montyhedge] 26/10/2017 08:36

She would be out of GSK so quick, if she had to cut the dividend. Fund managers would see to that. 5.7% dividend is safe. Free cash flow sees to that. 19p ex div soon.

[essentialinvestor] 26/10/2017 08:32

Think it will test 14. The conference call was not great monty.
Well not to my ears anyway.

[montyhedge] 26/10/2017 08:29

EssEvery now and then the stockmarket gods offer a bargain, you just got one, lol.

[montyhedge] 26/10/2017 08:25

Won't go below 1400, 19p divi shortly. Personally I don't think GSK will buy anything. The dividend is safe, fund managers would not back her.The shingles Vaccination will be a big winner, I had the other vaccination cost £160, GSK is better. But was not around then. Lol I should have waited. I think 1475p fair price.

[essentialinvestor] 26/10/2017 08:15

A few at 1408.

Test of £14 later today?.

[montyhedge] 26/10/2017 08:06

Yes, I can't see how they can maintain that dividend if GSK buy that division of Pfizer. Witty would not do that, she might.

[philanderer] 26/10/2017 00:30

BLOOMBERG:

'GlaxoSmithkline Can't Have it All '

GlaxoSmithKline Plc's new leadership is still trying to get its footing.CEO Emma Walmsley took control in April, and her third earnings call Wednesday morning didn't go especially well. The drugmaker's U.S. depository receipts fell 6 percent after it was less than definitive about maintaining its dividend.

But the call only highlighted something investors should already know -- if Glaxo doesn't rein in its spending ambitions, its dividend may need to come down.

Glaxo pays a hefty dividend despite free cash flow that lags many of its large pharma peers.

The company's comparatively scant dividend cover doesn't exactly match up with its potentially lavish spending plans. Novartis AG has a put option that could see Glaxo buy out its approximately $10 billion stake in their consumer joint venture between now and March.

Glaxo also mentioned on Wednesday's call that it will look at buying Pfizer Inc.'s $17 billion consumer unit.At the same time, Glaxo executives have said investing in the pharmaceutical business will be a key priority, and for good reason. Pharma sales growth wasn't dazzling in the third quarter, and respiratory medicine Breo missed sales expectations by a significant margin.

Glaxo's biggest drug markets -- respiratory and HIV medicines -- are competitive, and it's launching or hoping to launch new drugs in both categories. Glaxo got good news last week with the FDA approval of its shingles vaccine Shingrix and on Wednesday with news that a panel of U.S. experts backed that drug over a competing Merck & Co Inc. product.

Beyond that, the drug pipeline is not particularly thrilling. Revamping it will be costly. The company has enough debt capacity to buy out Novartis, according to Bloomberg Intelligence.

Buying Pfizer's unit would stretch leverage further. To do either deal while also continuing to pay such a generous dividend will be a reach, and would leave little room to spend on the pharma business.As much as it would like to, Glaxo can't have it all.

[philanderer] 26/10/2017 00:20

British drug giant GlaxoSmithKline could swoop on consumer healthcare arms of US rival Pfizer and Germany’s Merck

Read more:

[essentialinvestor] 26/10/2017 00:10

I made it approx 1441 on the US close, ignoring the after hrs move.

Expect some more weakness tomorrow but happy to be wrong on that.

[cyberian] 26/10/2017 00:03

WS after hour trade equiv. 14.50, and certain top flight analysts looking for a strong performance in 4Q....a review of brokers targets provided over recent times are still extremely reassuring. CEO style appears quite different from previous CEO who I rather liked although he took a lot of flack over recent years, which I thought was undeserved. He must be credited with a better balance within the company and certainly provides the new CEO with an excellent platform. She has already "pinched" a key person from AZ, to push the medical research side and that could pay dividends. Further, believe that she will only pay what is appropriate and of benefit to earnings profile from the consumer products stated to be on the market from two major pharmas, one likely to be up for auction in next month or so. The dividend policy seems pretty well committed so return remains very attractive at current share price ...I would certainly add on any futher weakness, having held over last 12 months without trading.

[tim 3] 25/10/2017 23:26

Unusual how so many of the big caps I watch are miles of their highs as the FTSE is near record territory.

Surprised at the size of the fall here.

[essentialinvestor] 25/10/2017 22:45

Had a listen. Emma not as confident in presenting as AW,
as a scientist Andrew had an advantage in that respect.

My very rudimentary takeaway is respiratory sounds particularly price competitive.
The new product launches appear very solid prospects, but will take
time to build market share.

More tricky is where does the next phase of growth products come from,
it appears emphasis is on oncology.

Neil Woodford's rational selling GSK was partly on concerns re
the medium/longer term pipeline. Clearly a lot of work to do there.

All in all, not left with a feel good factor having listened to the presentation.

The sharp share price fall is more understandable.