PrefInvestor1
12 May 2018
Going to get Trumped ? Hi All,Heard his latest speech on drug pricing on Friday. Sounded a bit ominous to me. Is GSK going to get hit by these measures ?. Any thoughts ?.ATBPref
eck8
11 May 2018
Re: Ex Dividend? Sorry - It was yesterday.I have blanked out yesterday. Still trying to recover from the dog BT fallout!! Averaging down for a year from £3.04. Good old LGEN - my saviour.
eck8
11 May 2018
Ex Dividend? I hope it's today.Onwards and upwards.
ringer3
10 May 2018
DingemansÂ’ exit from GSK example on severance without pay [link] a rare sight: a long-serving FTSE 100 executive leaving without a payoff. At the age of 55, Simon Dingemans seems too young to retire as finance director of GlaxoSmithKline but he and the company have gone about the process in the correct manner. Dingemans informed the company of his plan, will work out a year’s notice and will depart next May without a severance payment.This ought to be completely unremarkable since it is how the world works for 99.9% of the population. It is only in the corporate world that it is often deemed necessary to pay departing executives to go away when they’ve chosen to leave anyway. The usual wheeze is to pretend a replacement has to be found within months, thereby triggering an obligation for the employer to cover the full notice period.The practice is a contractual outrage, of course. Severance payments for voluntary leavers are a nonsense – worse, in principle, even than bonuses schemes that pay out in all weathers. The Dingemans example, let’s hope, marks a turning point.
gamesinvestor
27 Apr 2018
Re: Results aspace - No your not talking to yourself, it's a good effort on your part."2. Profits have been erratic over the past nine years.">> I'd put this down to the hit and miss of getting new drugs accepted whilst watching the ticking clock of your mainstream money earners going off patent. Pharma and especially Bio is a very expensive and risky business to be in. Remember also that Advair's fate from generics has just been delayed not cancelled - when it comes, it will leave a huge hole in GSK's business.At least GSK has some stability with the consumer stuff, albeit low growth and lower margins.Your points on 4-5 and 6 are a huge bone of contention in how they are viewed and it's a mute point on how you value these - I'm also concerned about what gets declared and what gets ignored each year when declaring the profit numbers -- they can be construed as somewhat artificial - as Terry Smith's old article points out.7 - Salaries -- I hadn't realised they were as bloated as this and it does imply these businesses have one hand tied behind their backs before they start - they are too expensive to run with bloated R&D costs.I held GSK for years and it did nothing, other than pay a decent dividend for which it's questionable whether it could really afford -- I'm not interested in it anymore or AZN for that matter -- The French guy is buying everything that moves at monster prices and if it turns out that those oncology drugs don't give a return, the share price will be toast.Games
aspace
27 Apr 2018
Re: Results Just thought I’d update my periodic analysis of whether or not to buy GSK and post my reasons on here. Even if I’m only talking to myself. Again I have concluded GSK is not a good investment for the following reasons:1. Some revenue growth but uninspiring. 2. Profits have been erratic over the past nine years. While I would tolerate erratic profits in a smaller company, I would have thought a diversified pharma multinational like GSK should be more steady than this. 3. Free cash flow after tax and investment actually tells a better story over the past nine years. It is always positive, even allowing for the 2015 Novartis transaction. But this glimmer of hope is extinguished by the following negatives. 4. Even if we accept that the £23 billion intangibles are correctly valued on the balance sheet, net assets including intangibles are around only £3.5 billion because assets are strongly offset by liabilities (trade creditors and debt). Yet although the balance sheet is only worth £3.5 billion market capitalisation is a whopping £77 billion at today’s share price of £14.35. This implies GSK’s market value is 22 times greater than its balance sheet value. Whaaa???5. Another way of looking at this is net asset value per share is only 65p including the intangibles valued at £23 billion. Yet the share price is an astonishing £14.35. 6. And look at the debt leverage which I calculate to be 80%. That means GSK’s assets, much of which are intangible, are financed 80% by long and short term debt and trade creditors. Might be OK if earnings were stable and growing but that is not the case here. It also worries me that trade creditors blew out from £12 billion in 2016 to £21 billion in 2017. If creditors aren’t getting paid on a timely basis, that might suggest cash flow problems. 7. Yet average salaries continue to rise. Average annual salary per employee has risen from £82,000 in 2016 to £92,000 in 2017 representing a 12% increase which is way above inflation. Furthermore an average salary of £92,000 is far above national average of around £30,000. way of comparison, average salary at Reckitt Benckiser is £40,000, Unilever is £42,000. So many GSK employees are highly educated R&D scientists. But the data shows payroll cost has got out of hand. 8. Buying at this price means placing enormous FAITH in the ability of GSK’s intangible assets to deliver super-profits and/or to discover a new blockbuster like Zantac. They might do it. But when??I see this one as too optimistically priced, unlikely to be a takeover target at this inflated share price and therefore vulnerable to being a long-term laggard so I’ll continue to avoid.
gamesinvestor
25 Apr 2018
Re: Results "Time for an update on the GSK vs LLOY debate/debacle games?"Doug - It was fun while it played out, and I confess to have been lucky enough to have sold GSK at over £17 -- but I guess at today's price who knows?It's taken the hit today mostly because of the buyback of the Novartis share and the currency exposure -- still the consumer health has indeed stagnated.Lloyds is a highly risky stock to own because of the massive leverage and for that reason it could never be a big position for me, but I did buy a few before the dividend at 64.Xp but will just as easily sell it again close to 70p - something I've done a few times, although I don't classify myself as any kind of experienced trader like soi.Games
Uncle Doug
25 Apr 2018
Re: Results I didn't like the results. Poor show IMO. I've had just about enough of this stagnation. Shame as they seemed to be on a recovery last few months. Heads should roll. Woody did well to sell out last year at £17 although LLOY hasn't fared much better. Time for an update on the GSK vs LLOY debate/debacle games?
II Editor
25 Apr 2018
NEW ARTICLE: Is GlaxoSmithKline dive overdone? "In the context of what has been a very promising start to 2018 for LSE:GSK:GlaxoSmithKline, today's post-Q1 results share price decline shouldn't be cause for alarm among investors.A 2% fall in both sales and earnings per share (EPS) for the ..."[link]
gamesinvestor
25 Apr 2018
Results [link] delivers Q1 sales of £7.2 billion, -2% AER, +4% CERTotal EPS 11.2p, -48% AER, -33% CER; Adjusted EPS 24.6p, -2% AER, +11% CERSignificant currency impact in the quarter reflecting movements in SterlingFinancial highlightsCER sales growth across all 3 businesses. Pharmaceuticals sales £4.0 billion -4% AER, +2% CER; Vaccines £1.2 billion +7% AER, +13% CER; Consumer Healthcare £2.0 billion -3% AER, +2% CERAdjusted Group operating margin of 26.6%, down 0.2 percentage points AER, up 1.3 percentage points CER. Pharmaceuticals 33.2%; Vaccines 27.4%; Consumer Healthcare 19.4%Total EPS 11.2p, -48% AER, -33% CER, reflecting revaluation of Consumer Healthcare business following agreement to acquire full ownershipAdjusted EPS 24.6p, -2% AER, +11% CER driven by continued operating and financial efficienciesQ1 free cash flow £324 million -50% primarily reflecting impact of £317 million Vaccine sales milestone payment to Novartis19p dividend declared for quarter. Continue to expect 80p for FY 2018
gamesinvestor
23 Apr 2018
Re: Woody dumps AZN "I'd expect them to make fewer howlers than Woody has of late."he's just done it again :-""Prothena Corporation plc (PRTA)NasdaqGS Real-time price. Currency in USD11.50-25.34 (-68.78%)At close: 4
0PM EDTGames
Steve Gurr
20 Apr 2018
Re: Bca marketplace share look cheap ... I have shares in GSK and visit BCA pretty much daily and buy 200 cars a year from them.........................does that work as a link?
Jack_Walsh
20 Apr 2018
Re: Bca marketplace share look cheap ... Because he needs medical help?Tenuous, I know.
Hardboy
11 Apr 2018
Re: Bca marketplace share look cheap 28% ... If anyone can point out one point vaguely relevant to GSK in this article I'll take Viko off ignore
viko
11 Apr 2018
Bca marketplace share look cheap 28% discount [link]
