Astra Zeneca

[77ss]

With the current market gyrations, there seem to be a lot of tempting targets, and I have just succumbed to one.

Topped up AZN at 4015p. Running yield 4.97%. Not quite as good as GSK (5.5%), but I'm overweight there.

I have been rather surprised by the steady downward drift of both AZN and GSK since the US election. I thought conventional wisdom was that a Clinton win would be bad for big pharma and that that risk would have been priced in.

Am I missing something?

[spiderbill]

Yes I've been puzzled by this too, especially since commentator sentiment around GSK has been much more positive generally. Like you I'm fully in on GSK but I'm expecting to have some more funds shortly that will allow an overall increase so may still buy some more. Not quite so sure about Astra but watching carefully.

Overall we seem to be seeing a retreat in many of the shares that did well after the Brexit vote following the US elections - apart from these two we're seeing big drops at the likes of Imperial Brands, National Grid, Unilever, and gold miners. Some promising top-up opportunities for income seekers.

[nk104]

I agree. A lot of the lumbering defensive beasts have come back over recent weeks. Part is sterling strengthening slightly, part I think is the idea that interest rates and inflation may finally be on the rise. Gilt yields have risen, so the bond-proxies have fallen.

Personally my portfolio is chock full of booze, fags, drugs and guns. It's a long term strategy so I don't see the need to do anything.

[idpickering]

AZN put this out this morning;

ASTRAZENECA COMPLETES AGREEMENT WITH CILAG GMBH INTERNATIONAL FOR RIGHTS TO RHINOCORT AQUA OUTSIDE THE US

"AstraZeneca today announced that it has completed the agreement with Cilag GmbH International, an affiliate of Johnson & Johnson, for the divestment of the rights to Rhinocort Aqua outside the US. Rhinocort Aqua is a nasal spray indicated for allergic and non-allergic rhinitis (inflammation of the inside of the nose), and for the treatment of nasal polyps (swelling of the nasal lining).



Under the terms of the agreement, AstraZeneca has received a payment of $330 million from Cilag GmbH International for the rights to the medicine outside the US. As AstraZeneca will not maintain a significant ongoing interest in Rhinocort Aqua, the payment will be recognised as Other Operating Income in the Company's financial statements, and will be booked in the fourth quarter of 2016. "

http://www.investegate.co.uk/astrazenec ... 00148873Q/

disc - I hold.

[jackdaww]

neil woodford is adding at these prices .

[idpickering]

neil woodford is adding at these prices .

I'm mulling over doing the same. Anyone else tempted?

Ian.

[Arborbridge]

Anyone else tempted?

Severely tempted! In my HYP, AZN is spot on the median weight, so there's no real excuse to buy more: will a little over-indulgence give me indigestion? I doubt it, but ANZ is nowhere near the topup zone.

At present, there are many good top up candidates, as you can see from my table of those immediately above Azn (in topup rank order), with yields alongside:

Code: Select all

Vodafone Group           VOD   6.50%
Man Group                EMG   6.00%
Interserve               IRV   8.40%
Pearson                  PSON  6.50%
Lloyds Banking Group     LLOY  5.40%
Pennon Group             PNN   4.40%
Sainsbury (J)            SBRY  4.50%
Standard Life            SL    5.70%
Carillion                CLLN  7.60%
Greene King              GNK   4.90%
Aviva                    AV    5.20%
Go-Ahead Group           GOG   4.60%
United Utilities Group   UU    4.40%
SSE                      SSE   6.10%
Marks and Spencer Group  MKS   5.80%
BP                       BP    6.90%

I can see the point of taking advantage of a well respected share if it is near a high for yield, however. (Woodford's instinct is often correct, too).

Arb.

[Arborbridge]

Apropos of topping up my holdings: I just checked my history of AZN and realise my last action was to trim in 2014.

Since then, the price has come back from my buy price by about 15%: if I bought more now, would I look like a trader?

Arb.

[77ss]

Apropos of topping up my holdings: I just checked my history of AZN and realise my last action was to trim in 2014.

Since then, the price has come back from my buy price by about 15%: if I bought more now, would I look like a trader?

Arb.

Definitely ! But should you care?

One of the reasons I topped up was the 20% fall in share price since I last top-sliced (in July of this year).

If you have the cash to hand, take advantage of a buying opportunity if you see one and hang anything else.

[idpickering]

Apropos of topping up my holdings: I just checked my history of AZN and realise my last action was to trim in 2014.

Since then, the price has come back from my buy price by about 15%: if I bought more now, would I look like a trader?

Arb.

Definitely ! But should you care?

One of the reasons I topped up was the 20% fall in share price since I last top-sliced (in July of this year).

If you have the cash to hand, take advantage of a buying opportunity if you see one and hang anything else.

If I could rec your post 77ss, I would. Have a virtual one instead

Ian.

[tjh290633]

Apropos of topping up my holdings: I just checked my history of AZN and realise my last action was to trim in 2014.

Since then, the price has come back from my buy price by about 15%: if I bought more now, would I look like a trader?

Arb.

No, of course you wouldn't. Shares nove up and down relative to the market and what was once overweight, and trimmed as a consequence, now becomes the best option for topping up. It has happened to me a few times, sometimes in the same year.

Go ahead.

TJH

[Arborbridge]

now becomes the best option for topping up.

Well, the trouble is that AZN is not the best option for topping up according to your own method, TJH. It's in 14th place - it could only be justified if one preferred that particular share over the 13 others. A valid reason to jump the top up queue might be that the share is, in its own terms, at an unusual high point for yield. A less valid reason might involve value judgements that one happens to prefer AZN over any of the others. But then we are getting into shakey territory, akin to falling in love with one's shares.

Go ahead.

Exactly! As it happens, Go-Ahead is higher up the topping order


Arb.

[tjh290633]

now becomes the best option for topping up.

Well, the trouble is that AZN is not the best option for topping up according to your own method, TJH.

Go ahead.

Exactly! As it happens, Go-Ahead is higher up the topping order


Arb.

If you read carefully, I was talking about any share which has risen, been trimmed and now fallen on harder times, so that it has come to the top of the top up rankings.

AZN is well down in my rankings Arb, which will not have any relevance for you. It's actually 21st in my rankings, and I don't hold GOG.

Currently VOD, GSK and MKS are vying for the top eligible position. CLLN and LLOY are ineligible, but above them.

TJH

[Arborbridge]

TJH,

I was just making the point that if I acted over AZN at present, it could not be justified purely on your method. Something akin to emotion would have to come into play.

Arb.

[digitaria]

I sold out of AZN in June, following the referendum result and thinking that the Brexit Bounce would soon be reversed.

Missed out on substantial gains, since it kept rising after that.

And now it is inexplicably back to well below my previous buy prices. It's not often you can get AZN at almost 5% yield.

So I'm back in today, at £40.10.

[Raptor]

Moderator Message:
Can we keep this topic on AZN and all posts on general trimming on the strategies forum please. Have moved or removed posts. Thank you.