Gsk Share Discussion Threads

[ny boy] 16/5/2017 10:21

Dip buying again, target 1715p the next resistance.

[dr biotech] 16/5/2017 08:51

I don't hold any shares outside of ISA's now, except for a few that are in the -90% club that I may sell at a later date for tax reasons. I have a mix of shares and funds, with the latter becoming more prominent as I have realised that other people are way better at investing than I am. Currently most are aimed at growth but the dividends are about 8k, all of which is reinvested.

I have a lot of woodford -mostly in the main equity fund but also in the patient capital fund that has been a disappointment. I rate him more highly than a broker, but thats as far as it goes. Currently biggest holdings are AV/GSK/LLOY/BARC/NG/BT - FTSE mainstays, and Premier Oil and Mission Marketing Group (AIM). The latter two are more risky but I am comfortable with that.

I like GSK - they are a customer of ours as well a decent income stock. I am currently logged on to their open wifi whist having a free coffee...

[goldpiguk] 16/5/2017 00:11

Hi Dr Biotech,

I am comfortable holding GSK shares. My remaining holding of GSK is outside my ISA and I am happy to retain these for the long term. If in due course the quarterly dividend is reduced a little it would not be a surprise. I regard GSK as a reliable is somewhat pedestrian income generator. Given the changes to the way tax is applied to dividends a stable dividend is ideal for me.

However within my ISA I am now much more income growth orientated. I was very lucky a couple of years ago to make a very large profit on a speculative AIM share and the annual income generated by my ISA has soared from £0 in 2014/15 to an anticipated c.£10,000 in 2017-18.

LLOY has been unloved in the city for years. Many private investors are still overly cautious on banks, yet (excluding RBS) the UK banking sector is moving into a post financial crash era and there are rich pickings to be had. LLOY should be able to increase its dividend by 10%+ a year for the next few years, so selling my GSK shares and increasing my LLOY weighting fits in well with my income growth aspirations.

(I currently hold CNA, HFEL, HSBA, LLOY, RMG, SBRY and VOD in my ISA portfolio.)

Goldpig

[dr biotech] 15/5/2017 22:11

As is often the case with TMF it's an empty article.

Can't compare rise in the share price vs FTSE and ignore the dividends.

Says diversity is its strength but doesn't say why. All you get with takeovers is talk of synergies, I've never heard of a company being taken over for diversity.

I'm comfortable holding here, I have a lot of respect for Woodford but he's not infallible.

[mj19] 15/5/2017 20:02

At the end of last week, star fund manager Neil Woodford caused a stir when he announced that funds under his stewardship had dumped their holdings of GlaxoSmithKline (LSE: GSK).In a blog post published on Friday titled Glexit, Woodford explained his decision to turn his back on this income champion. In summary, the move was based on Glaxo's inability to create value for shareholders. He also raised concerns about the sustainability of earnings growth, which is putting the dividend at risk.This isn't the first time Woodford has criticised one of the market's most respected dividend champions. Earlier this year he proclaimed that BP and Shell are "liquidating themselves" as they sell assets to fund dividend distributions and BT has also come under fire due to its weak balance sheet.The big question is, should investors now copy Woodford and dump their Glaxo holdings? Well, this is a difficult question to answer as it looks as if Glaxo is currently turning a corner.Value creationIt is difficult to disagree with Woodford's reasoning that Glaxo has struggled to create value for shareholders during the past few years.Over the past five years, shares in the company have gone almost nowhere rising only 16% excluding dividends since mid-2012. Over the same period, the FTSE 100 has gained 34%. Glaxo has struggled as the company has lost the exclusive manufacturing rights to some of its most lucrative treatments. These headwinds have held the company back, but management has been working hard to refocus the group. New therapies are finally starting to come through the pipeline and Glaxo's $20bn asset swap with peer Novartis has given it a leading position in the market for consumer pharmaceuticals.Break-up needed?Woodford has long argued that Glaxo should break itself up, which would unlock value as well as allowing management to spin-off underperforming divisions. A lack of action by management on this front is cited as being one of the reasons why he has decided to sell, but it's not clear if such a strategy would help the business. Glaxo's biggest strength is its diversification and by breaking the business up, the company would lose this crucial advantage. Woodford also argues that without such a strategy Glaxo's dividend is in jeopardy. Maybe so, but if the business broke up, some parts would fare better than others, and the lack of diversification, as well as higher costs, may mean that while value is created in the short term, over the long term investors could lose out.Future uncertainHaving said all of the above, it is almost impossible to tell what the future holds for Glaxo and the company's dividend. Still, over the past five years management has proven itself by reigniting earnings growth. Overall group sales grew by 5% year-on-year at constant exchange rates for the first quarter and based on current City forecasts, this year Glaxo's earnings are expected to cover the company's per-share dividend payout by 1.4 times.All in all, while Neil Woodford might have his doubts about the sustainability of the 5.2% dividend yield, it does not look as if now is the time to sell. Glaxo's sales growth is just starting to pick up, and the company's outlook is brighter than it has been for several years.Your own investment processNeil Woodford might be one of the UK's most respected fund managers but every investor has different goals, and while Woodford might believe it's time to sell Glaxo, it does not necessarily mean that it's the right decision for you.To help you compile your own investment strategy and find durable growth businesses, we've put together this new free report.The report is a collection of Foolish wisdom, which should help you improve your investment process and avoid needlessly losing profits. So if you're looking to turbocharge your returns, click here to download.Rupert Hargreaves owns shares of GlaxoSmithKline and Royal Dutch Shell B. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. The Motley Fool UK has recommended BP and Royal Dutch Shell B. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

[ny boy] 15/5/2017 09:41

Woody needs to get back playing with Buzz Lightyear

[spcecks] 15/5/2017 09:35

Also favour GSK over Lloyds.

[woodhawk] 15/5/2017 08:35

My own portfolio has massively out-performed Neil Woodford over the past few years - and I favour GSK!

[montyhedge] 15/5/2017 08:18

Agree. Lloyds bank over GSK I don't think so.

[pugugly] 15/5/2017 08:17

Woody (imo) sold out as he was given a bloody nose by the Board - Could it be, like a kid with a tantrum? - If you do not play with my ball I will take it away ! GSK know far more about their business than Woody ever will - OK they have some problem areas but as a whole the business mix is synergistic.

[montyhedge] 15/5/2017 08:15

Is that the same manager who sold BAe then shares went up 20% ?

[richard98765] 15/5/2017 08:13

*wouldnt !

[richard98765] 15/5/2017 08:12

To me Woody sold out due to loss making divisions not being compensated enough by the profit making divisions.With no structural change likely, he felt the Divi was under the threat as the profit making divisions were facing more headwinds. He knows more on Glaxo than me, maybe the Divi is under threat so I would bank on the 5% for long

[montyhedge] 15/5/2017 08:08

Yes I get excited every 13 weeks lol

[ny boy] 15/5/2017 08:05

Morning Monty, sorry how often do gsk pay the dividend cheques again? 😜

[montyhedge] 14/5/2017 15:32

Things hotting up in the Pharma's sector, getting a cheque every 13 weeks, while we wait.

[mip55] 14/5/2017 14:42

Sunday Times has a piece on potential 8bn buyout of the old Beecham's stake held by Novartis, who it speculates, could use the cash for a merger with AZN.

[billionaire1] 14/5/2017 13:15

might be a slight pull back here on Monday as a slight dip at the end in wall street but who cares good div we re all in for the long haul

[chiefbrody] 13/5/2017 11:37

Prob worth a tad more risk to lock in a 5% going on 7-10% div ;-)

[montyhedge] 13/5/2017 10:41

DrBut I thought Woodford runs a income fund not a growth fund.Surely the most reliable divi payer yielding 5% is a lot safer than a U.K. Bank.

[jadeticl3] 13/5/2017 08:48

I do not have a high regard for Financial Analysts, but their consensus at this time looks very healthy for GSK. Anyone who sold GSK a week ago when they fell to about £15.30 will be sick today, and I think there is much more to come.

So has he made a mistake, if not in selling GSK,but in timing?

[dr biotech] 13/5/2017 08:28

From memory GSK was 2nd in the fund, Lloy is 11th. So not a straight swap.

He did also take a position in Avila recently which he sold after a month for a decent gain. Have to respect his long term record.

IMO Lloyds is higher risk, but could offer greater capital gain.

[montyhedge] 13/5/2017 07:34

I think it is, but hey everyone different, I hope Lloyds are ok, I own the Lloyds CoCo bonds.

[chiefbrody] 13/5/2017 06:55

Lloys is not a very high price Monty. Even you should know that.