Gsk Share Discussion Threads

[montyhedge] 26/10/2017 17:55

Figures good, naive CEO making stupid comment about bid. Emailed her telling to up her game and get street wise with the market. Bears put 2 and 2 together, bid=dividend cut to fund it, great bear attack.
Bounce in the morning.

[mj19] 26/10/2017 17:50

3.7% down in US

[philanderer] 26/10/2017 16:56

From earlier today..

Downgraded by BOA Merrill Lynch from 'buy' to 'neutral'

The US investment bank Merrill Lynch has graded GlaxoSmithKline from "buy" to neutral for the third quarter and lowered its price target from 1730 to 1550 pence. The US investment bank's experts explained their step in a study published on Thursday with the expectation of increasing pressure on margins from 2018 - partly because of the generic competition for the asthma drug Advair. In addition, the management of the pharmaceutical company did not want to exclude a dividend reduction./tih/ck Date of analysis: 26.10.2017

[che7win] 26/10/2017 16:48

So this year and next year 80p expected, this was a nice short attack by some, nothing more imho.

[essentialinvestor] 26/10/2017 16:47

M, appreciated, same to you.

[che7win] 26/10/2017 16:47

What could be clearer than the results published yesterday regarding the dividend:

"GSK expects to pay an annual ordinary dividend of 80p for 2017.



GSK recognises the importance of dividends to shareholders and aims to distribute regular dividend payments that will be determined primarily with reference to the free cash flow generated by the business after funding the investment necessary to support the Group's future growth.



The Board intends to maintain the dividend for 2018 at the current level of 80p per share, subject to any material change in the external environment or performance expectations. Over time, as free cash flow strengthens, it intends to build free cash flow cover of the annual dividend to a target range of 1.25-1.50x, before returning the dividend to growth."

[minerve] 26/10/2017 16:43

Essential

Enjoy your ale and have a pleasant evening.

[montyhedge] 26/10/2017 16:39

Come back Witty get rid of this naive CEO.

[minerve] 26/10/2017 16:39

Well, hope not too much lost today guys. Probably get some bounce tomorrow???

[minerve] 26/10/2017 16:36

Essential

I can't argue with what you have said. In my portfolio I 'make room' for having certain quality stocks within it and prepare to accept capital loss - even reasonable capital loss - to own it. If you don't allow that you either never own it at all or wait for an indefinite and sometimes very long time in order to purchase. This behaviour forces you to exclude very good companies and select slightly inferior ones. The right mix of companies is important for a porfolio and paradoxically investing is not always about making money - it is about achieving lifetime personal objectives. I could lose money on RB but in return I am buying security. Not many would understand that IMO. The high PE in RBs case gives you an idea of how the market views it and the same principle is extended to bonds even when you get negative return.

[ny boy] 26/10/2017 16:31

Bid alert 🚨

[uapatel] 26/10/2017 16:29

Well hopefully we get a bid in before Emma is allowed to speak in public again. (LoL)

[montyhedge] 26/10/2017 16:27

Her comments killed the share price not the figures. Market thinks bid=dividend cut.

[ny boy] 26/10/2017 16:25

UNVR fell 5%+ recently bought that one, as it was attractive entry point to park cash albeit a lower dividend, but up 3% today.

Bit of a bargain here, watch for a bid approach, highly attractive, best ignore the noise

[badtime] 26/10/2017 16:23

Action..might get a bounce ..but if markets weaken..then probably lower ..but it's all guesswork

[essentialinvestor] 26/10/2017 16:22

M, 21x for an approx 2.3% yield, don't see the attraction myself.
You could buy RB. on approx 14x 5 years ago, with a better growth outlook.

Come the next bear market there may be a nasty piece of mean reversion there imv,
just my own take. Their dividend is rock solid, will say that in terms of sustainability.

[minerve] 26/10/2017 16:22

As someone said earlier - this was discussed earlier today on FT alphaville. Some were not impressed by underlying results also - particularly wrt vaccines.

[montyhedge] 26/10/2017 16:20

Ess
Bring back Witty get rid of her, very very naive. Figures I thought was decent, its her comments.

[minerve] 26/10/2017 16:18

If RB. buy healthcare from Pfizer i'll buy RB. I will be prepared to pay through the nose for it aswell. RB were too impatient and bought Mead Johnson. Probably all down to CEO remuneration calculation based on earnings per share.

[essentialinvestor] 26/10/2017 16:17

The comment about GSK being a consolidator in a fragmented OTC market was naive,
as the next question was always going to be.. how will you fund this.

[montyhedge] 26/10/2017 16:17

Email Investor Relations if unhappy about her comments.

[e-mail]

I emailed very happy with update, but CEO comments about a bid as spooked the market.
She should shut up about that. Market thinks bid, equals dividend cut.

[essentialinvestor] 26/10/2017 16:14

GSK calls tend to be robust, I've listened to tougher than that previously.

[minerve] 26/10/2017 16:14

The issue is conviction of where you want the company to go. At the moment the signals seem to be - although I haven't looked into it closely - ambiguous. Not good enough.

[ny boy] 26/10/2017 16:13

Says 02 Nov

Anyway bought more £5’s worth @ 1376, happy with that, get more divis too