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GSK - Gone nowhere for 10 years but......

Medical related share discussion
GeoffF100
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Re: GSK - Gone nowhere for 10 years but......

#119381

Postby GeoffF100 » February 20th, 2018, 9:40 pm

Share Centre appears to have some good stuff:

https://www.share.com/find-investments/ ... &csi=10042

If you look at Financials - Fundamentals you will find Cash Flow From Operating Activities which is £6.198 billion in the last FY. Note f says that dividend payments are included in this figure.

Share Centre's conclusion is "We continue with our Buy recommendation for investors seeking income and willing to accept a lower level of risk."

77ss
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Re: GSK - Gone nowhere for 10 years but......

#119393

Postby 77ss » February 21st, 2018, 12:25 am

GeoffF100 wrote:Share Centre appears to have some good stuff:

https://www.share.com/find-investments/ ... &csi=10042

If you look at Financials - Fundamentals you will find Cash Flow From Operating Activities which is £6.198 billion in the last FY. Note f says that dividend payments are included in this figure.

Share Centre's conclusion is "We continue with our Buy recommendation for investors seeking income and willing to accept a lower level of risk."


Maybe I misunderstand something, but this sounds pretty dumb to me.

Who isn't willing to accept a lower level of risk?! And it comes with income?

CommissarJones
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Re: GSK - Gone nowhere for 10 years but......

#119551

Postby CommissarJones » February 21st, 2018, 9:31 pm

GeoffF100 wrote:If you look at Financials - Fundamentals you will find Cash Flow From Operating Activities which is £6.198 billion in the last FY. Note f says that dividend payments are included in this figure.

The important figure is free cash flow, which is essentially cash flow from operations minus capital spending, i.e. the amount of money left over for things such as paying dividends once investment in the company has been funded. GSK's FCF in 2017 was £3.4 billion, and yet again, that failed to cover dividends paid of £3.91 billion. Even though I am no longer a shareholder, I guess it's good to see that the company has remained consistent.

CommissarJones
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Re: GSK - Gone nowhere for 10 years but......

#127296

Postby CommissarJones » March 22nd, 2018, 8:25 pm

Bloomberg reports that GSK has made its final bid for PFE's consumer unit, and its sources put a price tag of $15 billion-$20 billion on the deal.

ADrunkenMarcus
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Re: GSK - Gone nowhere for 10 years but......

#127303

Postby ADrunkenMarcus » March 22nd, 2018, 8:58 pm

Reckitt Benckiser's share price rose when it confirmed it was pulling out. I wonder if GlaxoSmithKline's will do the opposite if it is successful in its own bid?

Best wishes

Mark.

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Re: GSK - Gone nowhere for 10 years but......

#142866

Postby Bhoddhisatva » June 1st, 2018, 3:19 pm

I don't have my sums to hand but remember looking at this as I inherited some GSK shares and for years I left them alone because they were paying a good divi, seemed rock solid and a world leader and as an investment, seemed like a rock solid blue chip pharma co.

Butit became clear to me that they claim "exceptionals" again and again for what is now a routine cost of doing business - law suits. These can and have been billions sometimes and last year they decided to re-arrange their reporting to put some of them (but not all) into a different category.

https://economia.icaew.com/en/news/apri ... l-expenses

So I would be wary of any cash flow figures and divi cover - I sold out my small holding a few months back as I concluded they were not producing new blockbusters, their divi was at risk, new CEO talk. Please DYOR.

ADrunkenMarcus
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Re: GSK - Gone nowhere for 10 years but......

#142874

Postby ADrunkenMarcus » June 1st, 2018, 3:45 pm

Bhoddhisatva wrote:I sold out my small holding a few months back


I did the same. I think there is a danger to the dividend, but the greater concern for me was that they would continue to pay a high dividend at the expense of rising debt levels and declining reinvestment in the business to generate future earnings. Therefore the proceeds went into companies with stronger balance sheets.

Best wishes

Mark.


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