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

Medical related share discussion
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.

Bhoddhisatva
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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.

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

#194373

Postby CommissarJones » January 17th, 2019, 8:47 pm

John Kingham at UK Value Investor has sold Glaxo in his model and personal portfolios.

https://www.ukvalueinvestor.com/2019/01 ... ield.html/


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