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I think that it is time for the FTSE top 50% of stock to buy a dollop of their own shares and hold them in Treasury . They could then desert the London market, dropping the listing and go elsewhere where their stock won't be hammered so much ie. DOW or Frankfurt.
London with its horrible crew of shorters is finished. They have destroyed all capital value in top firms. They deserve to be punished.
With the low pound, stocks should be doubled in price to represent lost value, making up for the very weak pound.
Olda I think you are right, it could test the March low 1236 or bounce circa 1250, or drop lower, or move higher! Who knows. What I do think is that it will turn at some point and at any price under 1300 its value (PE 11.1 EV to EBITDA 10.12 Price to Sales 1.89 Price to FCF 11! etc etc)
So I always prefer to be in than trying to guess the bottom and end up not in. Of course you have the pain of the loss then but hey ho
Confirmed new Lockdown gives this rotten market scope for a new downleg. So I have undone my Limit Buy here. Can see this dropping further than my previous prediction. May be wrong of course but in my opinion it won't take much to send indices sharply lower again.
>Anyway - gsk is a essential company so does it even fall under lockdown guidance?
Im not overly worried as they said last week "UK drugmaker GlaxoSmithKline said it was back on track to meet its profit forecasts for the year after the number of patients being vaccinated for standard diseases had begun recovering to pre-pandemic levels."
So I dont see the UK lowdown hitting it too hard if they've just come through the last 7 months. Its the USA vaccinations we need to pick up (which they are)
Anyone that has seen management, and I have met some, will understand why the share price is languishing and has gone nowhere in years. Not only is it already a heavily indebted company so share buybacks may even be counter productive, if the best idea management have is to invest capital in a share buyback they should be replaced with others that offer greater vision.
This is not a badly run company and does not have the headaches of IAG and RR so we must not be too alarmed. If it moves out of London, it can write its own agenda. The money saved from the split situation could be put to better use. I have reason to be annoyed as I am holding £70,000 in shares here. Admittedly, it is only my largest shareholding amongst others.
Cheers.
Even if there's a short term fall, this is still, in the longterm, a good investment. I took a position last week and am planning to hold until I'm 50 to fund retirement:).
Anyway - gsk is a essential company so does it even fall under lockdown guidance?
May reconsider my planned share purchase in 2 weeks given the lockdown news I can see this dropping again.
I would assume that any shares bought in a large buy-back need not be cancelled but be held in Treasury. Thus dividends accruing would remain in the firm's pockets. I can't see this affecting the capital of the firm. Thank you for your observations SAK50.
With a buy -back there would be a useful saving on dividend payouts. Ultimately the company would save a lot of money and if two billion dollars were spent on this move, the share price IMHO would rise to at least £20 a share.
We as shareholders want to make a profit. The company is very profitable at the moment but capital appreciation is miserable due to the clowns on the London Stock Exchange.
With 5 billion shares...you are going to have to do a pretty expensive buy back to make it even slightly worthwhile , otherwise it isnt gonna make a bit of difference
Sak50 reply: it seems that the split is simply a waste of money and adds nothing to shareholder value. The present situation is a disgrace. Forget the split and buy back shares instead. Also leave the London market. Try the DOW or Frankfurt.
The split is going to cost a lot of time and money to put together and achieve..and with revenue and EPS currently delicate due to the pandemic and its effects, I cannot see how anyone in the BOD has much appetite for buy backs at the moment
With the split..I would guess the market is more aware, initially, of the costs to do it rather than any future benefits from it...as that is still some time away
...BOD has suggested that the costs for the separation are estimated at around £600 million to £700 million
It is time Emma did a massive share buy-back. She seems to be asleep on this one. Also the split has been forgotten.Something is amiss here.
...may be the bottom. Tuesday should see Trump waving Goodbye and the bounce should begin. But of course I could be wrong. I have gambled a low Limit Buy for Monday. And please stop bullying Emma here. She will earn her decent perks in the next three years, I am sure.