Gsk Share Discussion Threads

[montyhedge] 31/7/2020 07:40

1529p it's a gift from the stockmarket gods. Dividend 80p per year, in my opinion that's set in stone.

[amaretto1] 31/7/2020 07:06

Massive contract !!!

[abdullla] 30/7/2020 18:42

But GSK said in their results that they will maintain the 80p dividend this current year.

[porsche1945] 30/7/2020 17:43

...and....dividend will be for the chop before end of year, payout cut to 3 ish pc. “ set in stone “ montyhedge

[essentialinvestor] 30/7/2020 17:42

Cable now above 1.30, down around 1.22 just a few weeks ago.

[porsche1945] 30/7/2020 17:39

its not that long ago exchange was over 2.00 dollars to pound, 1.30 is hardly weak dollar, weird how low the bar is set for trashed sterling since osbornes disaster with the economy and then the brexit fiasco. No wonder the uk is doomed.

[zeppo] 30/7/2020 15:45

Weak dollar affects sentiment here.

[zingaro] 30/7/2020 15:42

I noted that the shingrix sales were down £50 or 16% whereas they were growing before. I assume it is because of people not visiting their doctor atm. I imagine that with more and more peoplegetting the flu jab this autumn that saLes will spring back.

[essentialinvestor] 30/7/2020 15:13

Ah, ok, above my pay grade Alp, that's more your area!.

However, the upward creep in debt may be worth noting fwiw.

[alphorn] 30/7/2020 14:56

Essential - I was more addressing the issue of having your cash in the US from profits over there whilst dividends are paid from the UK. Cash can be in the wrong place (tax etc etc).

[zicopele] 30/7/2020 13:44

Dividend is too high. This issue must be addressed.

[essentialinvestor] 30/7/2020 13:30

Alp, the pay out looks too high, however won't get in to that
well worn discussion again!.

[zipstuck] 30/7/2020 13:24

While we are maintaining our 2020 Adjusted EPS guidance, there remain
notable risks to business performance over the balance of the year.
In particular, the outcome is dependent on the timing of a recovery
in vaccination rates, particularly in the US, which we anticipate
in the third quarter. If we were to experience a delay in this recovery
we could see a significant impact in 2020. In the case of, for example,
a three month delay, the impact on adjusted EPS would be up to 5
percentage points.

[alphorn] 30/7/2020 12:38

Essential - I have not studied it for a while but the question of where are the profits v where is the dividend paid has always been relevant (debt subject). Similar issue for other global players.

[essentialinvestor] 30/7/2020 12:08

Right, found it at last:

NET debt
At 30 June 2020, net debt was GBP23.4 billion, compared with GBP25.2
billion at 31 December 2019, comprising gross debt of GBP31.7 billion
and cash and liquid investments of GBP8.3 billion. Net debt decreased
due to the GBP3.3 billion proceeds from the Horlicks and other Consumer
brands disposal including shares in Hindustan Unilever of GBP2.7
billion and GBP0.6 billion of other assets, GBP0.3 billion of other
business and asset disposals together with GBP2.5 billion free cash
flow, partly offset by cash divested of GBP0.5 billion, dividends
paid to shareholders of GBP2.1 billion, GBP1.5 billion of unfavourable
exchange impacts from the translation of non-Sterling denominated
debt and exchange on other financing items and GBP0.2 billion in
additional investments.
At 30 June 2020, GSK had short-term borrowings (including overdrafts
and lease liabilities) repayable within 12 months of GBP6.0 billion
with loans of GBP4.7 billion


So GSK received £3.3 billion from disposals, which are a one one,
certainly on that scale because of the ULVR transaction.

Now this is the salient bit, add that £3.3 billion on to net debt and
Debt would have increased by approx £1.5 billion over the Q.

That's not good, not al all. Their debt keeps on steadily increasing.

[essentialinvestor] 30/7/2020 11:53

Some historical context on their debt:

[abdullla] 30/7/2020 11:52

Every thing is going down tracking Ftse except the divi I am sure we can survive on that.

[montyhedge] 30/7/2020 11:51

I go with Motley fool. Worked all these years for me. Doubled my money with dividend reinvestment, compounding 8th wonder of the world.https://www.fool.co.uk/investing/2018/01/20/why-i-believe-you-can-double-your-money-with-footsie-champion-glaxosmithkline-plc/

[cumnor] 30/7/2020 11:46

Problem here is no big blockbusters in the pipeline and vaccines-fine-but not the mega buck earners of Astra's pipeline. will take GSK a few years and luck to get a decent pipeline but for now consumer/vaccines stable but pricey at £80bln mrkt cap compared to AZN. Not sure if the 80p divi is that secure....

[montyhedge] 30/7/2020 11:34

Dividend set in stone, with banks, airlines, retail, etc all passing dividends. A safe 5% yield paid every 13 weeks, do me guys in these volatile markets.

[essentialinvestor] 30/7/2020 11:29

Can anyone clarify net debt from the Q update, because I can't see it for some reason.

[alphorn] 30/7/2020 11:28

"Also a pretty impressive pipeline for the future"

Don't forget that Big pharma has to run to standstill.