Gsk Share Discussion Threads

[spud] 22/10/2020 15:35

And they'd be too busy partying probably...

spud

[montyhedge] 22/10/2020 15:34

Someone said 18 to 25 won't get vaccine until 2022 because last with priority.

[montyhedge] 22/10/2020 14:14

No would not hold HSBC if they were free, forget banks, oil, airlines, retail, leisure, the only place to be Pharmas and tech

[igoe104] 22/10/2020 14:03

Montey are staying the same comments about HSBA a year ago.

[spud] 22/10/2020 13:57

You and yer Stockmarket Gods Monty! spud

[montyhedge] 22/10/2020 13:08

I loaded up, crazy price, like you said gift from the stock market gods.

[chessman2] 22/10/2020 12:42

Just bought some more at 1336p as at that price GSK is a stonking buy.

A gift from the gods as some would say.

I'm confident we will get back to 1700p+ in due course!

[tradermichael] 22/10/2020 12:34

Any effective dividend cut would likely happen during the course of the 'split'. We'll see if the 'sum-of-the-parts' boosts shareholder value, while at the same time maintaining the dividend pay-out from the separate companies .... ;0)

[badtime] 22/10/2020 12:14

@Porche1945 ...Re Alps with the smiley I think he knew that you div

[porsche1945] 22/10/2020 11:56

@nimbo

Good post

[tradermichael] 22/10/2020 11:25

You need Shingrix (or Zostavax, but not so good) as a preventative vaccine.

If shingles has broken out, there's the antiviral treatment Acyclovir, oral tablets.

[porsche1945] 22/10/2020 11:22

@alphorn

He meant “not”, you div.

[geckotheglorious] 22/10/2020 11:11

Ah will investigate further as they've had it a while now..

[montyhedge] 22/10/2020 11:07

I think it's to late if they have shingles, not sure more preventative measure.

[alphorn] 22/10/2020 10:56

"Now a tech stock on a pe of 200"

......are you sure? ;)

[adamb1978] 22/10/2020 10:55

I've owned GSK a couple times before and each time its underperformed, which makes me more hesitant about buying in now despite the dirt cheap multiple and yield. It has parallels with Aviva where people held because of the divi, but then that got cut and the share price tanked further.

That said, I'm looking to add a couple UK names to the large-cap part of my pension so have this on the watch list for when/IF performance picks up and some growth starts to appear. If I miss the boat and the share price accelerates before I get the chance to buy then I won't lose any sleep.

Therefore I'm looking forward to the results next week and will see on the back of that whether to add. Market expectations are below management's guidance which tells you something...

[geckotheglorious] 22/10/2020 10:52

?

I have a relative with Shingles so was asking about side effects as I'm tempted to get them to go private and have the jab.

[geckotheglorious] 22/10/2020 10:45

Thanks Monty.
Interesting to know.

[montyhedge] 22/10/2020 09:27

Don't worry about daily price valuations, solid now 6% yield cheque on the doormat every 13 weeks, it's an income stock for income investors.Now a tech stock on a pe of 200.Horses for courses.

[dr biotech] 22/10/2020 08:52

I’m back in at 1330, 1300 seems to be a support.

[nimbo1] 22/10/2020 08:49

Dire performance, and investors take it on the chin because of the 5% divi... one of the greatest cons the investment community peddles in this country are that high dividend yields are good.

You want wealth preservation and capital growth you have to listen to fund managers like Terry smith imo.

That being said I might buy some GSK if it looks to be turning - have owned it several times and it pains me to see it in the doldrums as its an important UK company!

[tradermichael] 22/10/2020 08:32

(Alliance News) - Berenberg on Tuesday predicted GlaxoSmithKline's third-quarter performance to lag behind market expectations but said it was "encouraged" as the pharmaceutical firm heads towards the end of a difficult year.

The German bank expects GSK to post third-quarter sales of GBP8.75 billion, which would be 6.8% lower annually and slightly below market forecasts of GBP8.80 billion.

Consensus says adjusted earnings per share will come in at 30.5 pence for the three months ended September, although Berenberg predicted an adjusted EPS of 30.0p. GSK posted an adjusted EPS of 38.6p in the third quarter of 2019, so should Berenberg's forecast be correct, GSK will post a 22% annual fall in earnings.

Berenberg rates GSK at Buy, with a GBP18.00 price target. The stock was down 0.6% at 1,388.40 pence each in London on Tuesday afternoon.

GSK will report its quarterly results on Wednesday next week.

"Since we initiated coverage on EU/US large cap pharma, our Buy rating on GlaxoSmithKline has been the most hotly debated topic. A near-term pushback has been downside risk to third quarter consensus and 2020 guidance," Berenberg explained.

"Although we see some flexibility on research & development expenses and selling, general and administrative expense spend (Covid-19-related savings), the second quarter and third quarter gap in vaccine demand leaves existing 2020 EPS growth guidance challenging. But this is a short-lived issue."

Berenberg noted GSK is guiding between a 1% and 4% decline in EPS in 2020, at constant currency. Berenberg itself expects a 5% decline.

The German bank is optimistic about GSK's pipeline, though did note that there has also been investor debate about its quality.

"Another investor debate centres on the quality of the pipeline. Our return on R&D investment analysis yields an average return for GlaxoSmithKline broadly in line with the peer group and cost of capital. Importantly, however, the trend is improving. We believe that at least five assets due to report proof-of-concept data next year could bring further upside and reinvigorate the story. Investor expectations remain very low," Berenberg said.

"As we move towards the end of what was always going to be a tough year for GlaxoSmithKline, we remain encouraged by the direction of travel. US Shingrix prescriptions have demonstrated a strong rebound since the summer," the broker added, referring to a shingles vaccine.

Berenberg expects GSK to return to EPS growth in the fourth quarter "and into 2021".

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