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Back Below 1500

lse:gsk

#1

Well it didn’t take long, although the FED rate hike is probably as responsible.
Should have sold my daughter’s holding yesterday – oh well.

I wonder what Woody is thinking, as he watches his 3 funds shrink by the day with the ongoing redemptions.

Games


#2

Good dividend this week. Worth investing in this company for the long term


#3

Not sure about that, with mounting debt, over paying for companies with no guarantee of a secure return. Offloading cash cows to invest in R&D with limited compound success rates.

The company has already stated that it will not support the current dividend in a guaranteed form as was the case up to the end of 2018. The new dividend policy links the dividend to cash flow, where as historically the dividend was maintained even when uncovered by cash.

There are far better places for your cash IMHO

Games


#4

Lawson 76,
I have just bought into GSK basically 1 I had no holding in pharm companies &
2, The proposed joint venture with the American pharm giant, into a separate holding company looks as if it should help lift the Company.


#5

I look at it differently. GSK - 6th best FTSE 100 performer in 2018. 19.04% total return. Long may the returns continue.


#6

Doug - watch out for Tesaro


#7

Well, I believe they have “guaranteed” the divi for 2019 too - but yes, beyond that, it will have to be earned rather than entitled. Nothing wrong with that, 'tis the way it should be, and a divi policy linked to FCF makes much more long-term sense than any earnings basis.

Around £15, I agree, there probably are quite a few better places for your cash - though that it is more of a reflection of the ever-larger number of compelling long-term opportunities out there, whatever the near-term overhang.

And… not a few WORSE places for your cash, too. I remain a happy holder - whither goest the dividend!


#8

Nice one there William, always good to have courage of conviction. :slight_smile:

Regards Games