Glaxosmithkline full year results.

[Dod101]

It bis a shame (once again) that we have two threads running on Glaxo because there are interesting points being made on both. I simply cannot understand why we cannot have a single discussion on any particular company on one thread.

Dod

Perhaps because most people it seems want to chat about GSK with respect to HYPs. A number of people don't have HYPs, have no intention of ever having a HYP, and thus aren't supposed to be contributing to the discussion on HYPP!

Are you suggesting this people aren't allowed to talk about it elsewhere?

GSK can be discussed in multiple places on this site, such as

HYPP
High Yield Shares General
Share Ideas
Company Analysis
Company Share News

that's just 5 of the top of my head.

This really isn't difficult a concept to grasp and I find it strange you continue to bring up this issue about a "single discussion on any particular company on one thread".

I appreciate all of what you have said but since the announcement of the Glaxo results at mid day we have had two interesting threads running in parallel and it just seems to me to be a shame and defies common sense.

Dod

[Arborbridge]

This really isn't difficult a concept to grasp and I find it strange you continue to bring up this issue about a "single discussion on any particular company on one thread".

Give the guy some slack to vent his frustration. We all do from time to time, and we usually support one another (well, sometimes!).

Arb.

[idpickering]

It bis a shame (once again) that we have two threads running on Glaxo because there are interesting points being made on both. I simply cannot understand why we cannot have a single discussion on any particular company on one thread.

Dod

Perhaps because most people it seems want to chat about GSK with respect to HYPs. A number of people don't have HYPs, have no intention of ever having a HYP, and thus aren't supposed to be contributing to the discussion on HYPP!

Are you suggesting this people aren't allowed to talk about it elsewhere?

GSK can be discussed in multiple places on this site, such as

HYPP
High Yield Shares General
Share Ideas
Company Analysis
Company Share News

that's just 5 of the top of my head.

This really isn't difficult a concept to grasp and I find it strange you continue to bring up this issue about a "single discussion on any particular company on one thread".

It is because I realise that some investors that might like to chat about any given share, and might not be HYPers, that I put these items on both boards, so that non HYPers are informed too. I like to think I’m doing both camps a favour/service. I intend carrying on in that fashion, unless I’m told not to by a mod. If I’m wrong please tell me. Or otherwise of course too.

Ian.

Moderator Message:
Ian, you're doing exactly the right thing. Please continue. --MDW1954

[funduffer]

Coming back on topic........

So GSK are to be split into a Biotech company and a consumer products company - is this right?

Is this going to be like the BHP Billiton split into BHP Group and South32, where I end up with shares in both companies?

If so, it will be interesting to see if either, neither or both are high yield. Sectorially, I would end up with one company in Pharma and one in Consumer Goods alongside Unilever, I suppose. A reduced dividend in the smaller biotech company is surely inevitable and unsurprising, but would there be one from the consumer products company?

Or is all this yet to be decided?


Questions, questions!

FD

[MDW1954]

Coming back on topic........

So GSK are to be split into a Biotech company and a consumer products company - is this right?

Is this going to be like the BHP Billiton split into BHP Group and South32, where I end up with shares in both companies?

If so, it will be interesting to see if either, neither or both are high yield. Sectorially, I would end up with one company in Pharma and one in Consumer Goods alongside Unilever, I suppose. A reduced dividend in the smaller biotech company is surely inevitable and unsurprising, but would there be one from the consumer products company?

Or is all this yet to be decided?


Questions, questions!

FD

The OP's post, and the RNS are very clear on this, as I read it. The clue is the word "aggregate". Across the two businesses, they are saying that dividends will be lower, but don't actually explain why.

MDW1954

[daveh]

Coming back on topic........

So GSK are to be split into a Biotech company and a consumer products company - is this right?

Is this going to be like the BHP Billiton split into BHP Group and South32, where I end up with shares in both companies?

If so, it will be interesting to see if either, neither or both are high yield. Sectorially, I would end up with one company in Pharma and one in Consumer Goods alongside Unilever, I suppose. A reduced dividend in the smaller biotech company is surely inevitable and unsurprising, but would there be one from the consumer products company?

Or is all this yet to be decided?


Questions, questions!

FD

I asked much the same question over on the shares board. I've been having a look through past reports and on the GSK website:
In the announcement on 19 December 2018

GlaxoSmithKline plc and Pfizer Inc to form new world-leading Consumer Healthcare Joint Venture

they say:

Future separation

The proposed transaction is transformational to the scale of GSK’s Consumer Healthcare business. Within 3 years of the closing of the transaction, GSK intends to separate the Joint Venture via a demerger of its equity interest and a listing of GSK Consumer Healthcare on the UK equity market. Over this period, GSK will substantially complete the integration and expects to make continued progress in strengthening its Pharmaceuticals business and R&D pipeline.

The intended separation of the Group will allow the two resulting companies to be established with appropriate capital structures for their future investment needs and capital allocation priorities. The new consumer healthcare company with its more durable cash flows will be able to support higher leverage levels than the GSK Group today, creating the opportunity on separation to reduce the leverage in the new Pharmaceuticals/Vaccines company.

So far I've not found any info on how they are going to do the divestment.

[moorfield]

simoan's post is worth consideration for an overall contra view!

viewtopic.php?p=383340#p383340

Some well considered points methinks

Some interesting points made in there, and I too don't expect to be drawing income off my portfolio for another 15 years, so perhaps I will use this price weakness as an opportunity for a top up after all. Decisions, decisions.

[tjh290633]

I have topped up my holding of GSK this morning, as posted on my other thread viewtopic.php?p=383615#p383615

TJH

[88V8]

My wife worked many years in Healthcare at Beecham, then Smithkline Beecham then Glaxo and we had built up such a holding by her impromptu purchases that it accounted for nigh on a third of our HYP divis.

Fortunately I have persuaded her to sell down somewhat, but it's still over 10% of our HYPish income.

Perhaps I should be pleased that it will constitute a lower percentage in future.

V8

[idpickering]

I have topped up my holding of GSK this morning, as posted on my other thread viewtopic.php?p=383615#p383615

TJH

Despite my comment further up this thread that I wasn't going to top up my GSK holdings again until after the split has happened, and the yields on offer are clearer, I might just top up my holdings on 17 Feb 21, the day before the GSK ex dividend date. My account is with Halifax, and one of their monthly scheduled investment dates is 17 Feb 21, hence my considering that option. Thereafter, I'll be looking elsewhere for likely top ups for March 21, the front runner being BATS currently.

Ian.

[biffinsbridge]

Gooday all, I have topped my GSK on the 17th. Did you top up Ian?
ALLthe best stay safe Dickie.

[monabri]

Gooday all, I have topped my GSK on the 17th. Did you top up Ian?
ALLthe best stay safe Dickie.

Just in case IDP misses this - he reported that he did top up GSK ...here's the link (Share News board).

viewtopic.php?p=387488#p387488

[idpickering]

Gooday all, I have topped my GSK on the 17th. Did you top up Ian?
ALLthe best stay safe Dickie.

Just in case IDP misses this - he reported that he did top up GSK ...here's the link (Share News board).

viewtopic.php?p=387488#p387488

Thanks for that monabri. Yes I did Dickie, as kindly mentioned by monabri. Imho, they’re a steal right now. I might buy more. We’ll see.

Ian.

[Matchless]

Yes - with a 10.5 PE this doesn’t look expensive for this company, i have bought more.

[idpickering]

Yes - with a 10.5 PE this doesn’t look expensive for this company, i have bought more.

Spot on. Please allow me to give you your second thanks/like.

Ian.

[miner1000]

I bought 3/4 of a full unit two weeks ago. I believe this share may not be totally HYP, but in the long run I think it will reward us all well.

Miner

[idpickering]

I bought 3/4 of a full unit two weeks ago. I believe this share may not be totally HYP, but in the long run I think it will reward us all well.

Miner

Agreed. Having topped up my GSK holdings in Jan and Feb this year already, I think I've just about got room for one more top up of these, without it being overly large in my HYP. As of now, they weigh in at 4% in capital value terms, of my 25 share HYP. Effectively, they're smack on the supposed average weighting of my HYP, but I don't mind nudging that figure up a bit. Surprisingly (to me at least) with an average buying price of my GSK shares being 1418p ps, I'm underwater by 14%. I don't feel like I'm 'grasping at a falling knife', just buying a 6.58% yield (according to dividenddata https://www.dividenddata.co.uk/dividend ... alDiv=true) whilst it's on offer. It's all about the income after all.

Ian.

[Dod101]

I bought 3/4 of a full unit two weeks ago. I believe this share may not be totally HYP, but in the long run I think it will reward us all well.

Miner

It depends what you mean by 'the long run'. Five years seems a reasonable period to judge it. Five years ago the share price was £13.83, today £12.155 and its dividend has been held during that period. They have announced a reduction in the dividend next year and a splitting of the company in to two separate ones. The yield is the only attraction that I can see, apart maybe a premium paid by some predator at some point.

I am a fellow suffere.

Dod

[moorfield]

I bought 3/4 of a full unit two weeks ago. I believe this share may not be totally HYP, but in the long run I think it will reward us all well.

Miner

It depends what you mean by 'the long run'. Five years seems a reasonable period to judge it. Five years ago the share price was £13.83, today £12.155 and its dividend has been held during that period. They have announced a reduction in the dividend next year and a splitting of the company in to two separate ones. The yield is the only attraction that I can see, apart maybe a premium paid by some predator at some point.

I am a fellow suffere.

Dod

... and ten years ago the price was £11.96, today £12.06, the dividend was increased from 70p to 80p and then held for seven years ...

[Arborbridge]

I've owned GSK since 2007 - one of my original HYP shares. It's just about done enough not to attract attention for being either very poor nor very good! This can be seen from the average XIRR which has been 6.8% - it has bobbled around 4% to 8% depending on the state of the market. The dividend has not increased as well as one hoped, and I'd say the income has been "slightly expensively" bought, but not a disaster.

It's currently on median value and tenth in my topup table. With the price having fallen for a long period of time, I'm not anxious to rush into topping up - even were cash available right now. I'd rather hang on for a while and see what happens next: my action would be sparked off if the share rose higher in my topup radar.

My question is: how can such a huge corporation in a favoured sector which will be in demand forever, be turning in such a lacklustre performance? Something does not feel right, which is why I in no hurry - I will just follow my usual rules.

Arb.