Gsk Share Discussion Threads

[tradermichael] 30/10/2017 08:17

spoole - agree, Chronic Investor, (like many of the media 'experts') is nearly always wrong - I nearly always do nothing or the opposite to their recommendations.

[hjs] 29/10/2017 23:22

Imo, the share price of Gsk has dropped as the market feels they will overpay for part of the Pfizer asset and this will have a knock on effect on future dividends. Gsk currently is treated as an income stock.

Another concern for Gsk is the awaited 1st Quarter P3 results from IMM for Lupus. Currently the prospects for this companies Drug called Lupzor are very promising and may have a big impact on Gsk drug.lupzor will be in direct competition.
This may or may not materialise but it has to got to be taken into consideration. I am not sure if Gsk has that many good drugs in the pipeline.

[mj19] 29/10/2017 17:17

Too much uncertainty at the moment not sure what to do I hate waiting for shares to come back to my purchase price... lol sometimes no choice but you end up tying up money for a long time.I wish the divi would be cut now so the future is brighter, or a rights issue either is fine with me...

[spoole5] 29/10/2017 16:59

whatever the IC say, usually doing the opposite is required.

[essentialinvestor] 29/10/2017 16:36

IC says Sell GSK,
previously had a hold rec.
Sell is on dividend uncertainty.

[spcecks] 29/10/2017 10:30

TraderMichael agree the future looks bright.

[essentialinvestor] 29/10/2017 09:59

The Australian flu outbreak is still killing people, a healthy 18 year old girl the latest
to die.

It's estimated 500,000 plus people in the UK eligible for the vaccine
may skip it, perhaps a year to have the flu jab.

[jadeticl3] 29/10/2017 09:21

Is it a fact that most of us, even on reflection, think the results released on Wednesday, were more than half decent? And if so we are seeking an explanation for a drop in share price that appears ridiculous. Uapatel’s explanation could be correct. It must be something that analysts never saw before the results. Articles issued since have not unambiguously pointed to one thing. Dividend cuts are a fear, yet so many are convinced this won’t happen. Is the other fear that Emma will seek to enlarge the part of GSK she knows best?

Maybe all this will simply disappear like snow in July, and we can drift back to about £17-20. On this basis I bought more at £13-50

[uapatel] 29/10/2017 08:58

TM, if you think the Blockbuster drugs are going to be winners then the money will roll in. Sounds to me as Emma doesn't think so, as she is looking to other areas for revenue. Hence why I think the share price was trashed last couple of days.

Like others here, I'm a shareholder and annoyed at the way we have handled the presentation of the results.

Sadly not in position to top up on shares. Oh well.

[tradermichael] 29/10/2017 08:45

It doesn't get much better than this .....

In the three months to September GSK posted a 34pc jump in pre-tax profits to £1.7bn and a 4pc rise in sales to £7.8bn, boosted by growth in HIV and respiratory medicines. 

During the period GSK was boosted by US approvals for two potential blockbuster drugs, a vaccine for Shingles and a three-in-one inhaler for the treatment of a severe respiratory illness, chronic obstructive pulmonary disease (COPD).

..... and yet ...... you know what happened -

[zorija] 28/10/2017 21:45

ianood,
This company has been evolving slowly... Err.. this company has been been evolving at an ever declining rate over the last two decades.
Ever since the merger with SmithKline the share price has been downwards over time.
Mike Dexter did the Wellcome Trust a brilliant move selling out when he did.
As an investment over 60 years then GSK has done well, but since then only the yield provides the attractability of the stock.
I still hold a large number but increasingly concerned over the sustainability of the dividend and the competency of the CEO...

[riskvsreward] 28/10/2017 21:21

Strongly agree with Dr. B. It is all about ROI over the long term. If the management can get a high return that is much higher than the cost of purchase, it will be good no matter how it is funded, be it more equity, more debt at a much lower cost than the ROI or a dividend cut.

The issue though is that a lot of management got it wrong and over pay.

[ianood] 28/10/2017 20:01

This company is evolving slowly which as a monolith is to be expected, however, neither a rights issue nor a divi cut would concern me too much, it's the longer term prospects that really matter.

[dr biotech] 28/10/2017 18:37

To me whether they should get involved with pfizers depends on the price and what synergies they think they can make. If they get a good deal and have to cut the dividend for a bit then I am fine with that. Not overpaying has to be avoided.

I think the price will recover a bit. Having said that I am still shocked that I managed to day trade yesterday by buying at almost exactly at the bottom and selling at the near top - so I have been right once, twice would be unlikely

[mj19] 28/10/2017 18:07

The problem is to buy want they want will cost them? They don't have much spare cash (5 billion) and they have big debts approx £14 billion?So with the divi gets cut or they need a rights issue? Or they just leave Pfizer auction alone but these ops don't come around that often.The major shareholders will go nuts if the price drops further when they start bidding in the next few weeks.The price looks cheap right, but will it get cheaper after xdivi date? Or will these climb now up to that date? I want to top up so not sure what to do. Thoughts anyone?

[uapatel] 28/10/2017 15:20

..sure the Board at GSK will be quite forceful in not pursuing anything which is not earnings enhancing.

You would hope so, otherwise they should step down

[cyberian] 28/10/2017 13:19

Strongly agree...maybe GSK can pick-up a few selective bits but nothing too radical.

[essentialinvestor] 28/10/2017 12:31

If J&J are interested and want the business the rest do not stand a chance.
Their financial firepower far exceeds GSK. GSK is a financial dwarf by comparison.

[cyberian] 28/10/2017 12:00

Top US analyst says its "less Likely" Glaxo will put forth a bid on Pfizer's over the counter business. Glaxo's first priority stated by Emma Walmsley is focussed on improving their largest business, the pharma business (R&D) within that . The company has been given the clear lead on a critical shingles treatment, and others are well advanced...GSK maintained its guidance for adjusted EPS to grow 3-5% on constant currency basis. Hopefully some more down to earth product annoucements etc. over coming weeks to help recover from recent share price weakness...sure the Board at GSK will be quite forceful in not pursuing anything which is not earnings enhancing.

[essentialinvestor] 28/10/2017 11:16

The current dividend policy has left GSK hamstrug with a heavy debt load and
ruduced commercial flexibility. There has been a high price to pay for the payout,
and the cost is seen in share price underperformance.

This week's % fall represents nearly 24 months of dividend payments.


The "lunancy" is paying out more in divdends than GSK earns in FCF.

[watfordhornet] 27/10/2017 21:25

That is right.Surely suicidal if she does anything to threaten dividend. The fund managers will not put up with her.Think this will blow over - she will need to reassure investors she is not a raving lunatic