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

Posted: June 1st, 2018, 3:19 pm
by Bhoddhisatva
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.

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

Posted: June 1st, 2018, 3:45 pm
by ADrunkenMarcus
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.

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

Posted: January 17th, 2019, 8:47 pm
by CommissarJones
John Kingham at UK Value Investor has sold Glaxo in his model and personal portfolios.

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

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

Posted: September 1st, 2020, 7:37 pm
by ADrunkenMarcus
I happened to note today that GSK's share price is down 7 percent or so since I sold it, whereas the Kone shares I bought are up 76 percent. I don't regret selling GSK.

Best wishes

Mark.

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

Posted: June 23rd, 2021, 9:20 pm
by ADrunkenMarcus
ADrunkenMarcus wrote:I happened to note today that GSK's share price is down 7 percent or so since I sold it, whereas the Kone shares I bought are up 76 percent. I don't regret selling GSK.


I still feel the same. Kone's share price is somewhat lower than last September 2020 but is still up markedly. They raised their ordinary dividend in 2020 and paid a special on top as cash piles up on the balance sheet. Moreover, dividend growth is forecast in 2021, 2022 and 2023. Given the GSK dividend cut, then the dividend yield with Kone may be better at that time too (I think it certainly would be on a gross basis - haven't done all the sums).

Why wasn't this thread called 'Gone nowhere for 20 years+ but...'?

Best wishes

Mark.