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