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Thanks Toff, dividend cut is not as much as we thought
Doubt it, EW, just can't warm to her jam tomorrow outlook.
Well market reaction was unexpected. But I see what you mean Peter. Some may see this as a chance to break out of this stagnant cycle.
Or maybe investors are excited about future share price growth instead of being stagnant for years!
Market games with GSK. So the dividend uncertainty outlook caused the share price to tank for sub 1150 and now a cut to 50/55p is taken in the market's stride.
ROFL
GLA
Iron
“Just been announced 55p for 2022”
Dividend will be paid by both companies. The aggregate is 55p.
Given that GSK have announced a progressive dividend policy commencing at 45p in 2023, I’d assume the spinoff company dividend will be 10p.
New
“Toff, you know that is due to a major holder taking top position of 12.1% from nowhere and rumors of takeover and strategic investment into Openreach / BT Sport etc .... so to say their SP has double since the cut is a bit misleading without the background too that rise imo.”
You’re absolutely right. But I didn’t say the shareprice rose because of the dividend cancellation .
Although I never said it outright I meant the SP nearly doubled in spite of the dividend cancellation.
Just been announced 55p for 2022
Toff
sorry my add-on wasn't a dissection of your comment ..more a separate add-on ..
my point being that ..creditors often have some clout when it comes to allowing dividend levels..whether any BOD likes it or not....so it is more a point to suggest that if Emma clips it back..it isnt necessarily Emma that has decided that...the decision may well have been " heavily influenced" by others with the clout to do so...
"I don’t think the dividend cut is a bad thing if the money is used to enhance the business. Since BT scrapped their dividend it’s shareprice has nearly doubled....."
Toff, you know that is due to a major holder taking top position of 12.1% from nowhere and rumors of takeover and strategic investment into Openreach / BT Sport etc .... so to say their SP has double since the cut is a bit misleading without the background too that rise imo.
Now if GKS can woowww the market today that's another matter.
Poker
“The idea that the dividend decision is all down to Emma is ...wide of the mark IMO”
I don’t think I wrote that did I? but the CEO does takes the responsibility for all corporate decisions.
I don’t think the dividend cut is a bad thing if the money is used to enhance the business. Since BT scrapped their dividend it’s shareprice has nearly doubled.
The jury’s out as far as Walmsly’s concerned. Today should answer a lot of questions regarding her tenure.
It will be her decision if her strategy is to realign the cash to investing and from what i have read (Have to see what is finally said) then it is solely her strategy and she has already started mooting to big Institutions.
Will be interesting to see what the big guys do as a lot will already know of her plans and shared what they think.
Hey Toff
..how are you doing ?
for me...
I would imagine the presentation has been well rehearsed and they may well be reading from teleprompters... the presentation itself should be delivered OK...
The devil will be in the detail of course ...and it will be key financial figures where given that the analysts will be looking for..I guess
This company is way too big to just let any CEO make all the decisions.... a CEO has opinions of course but you don't get to do whatever you want... so the idea that it is all Emma's strategy is a bit wide of the mark ...
Dividend cuts are NOT always the decision of the CEO or BOD ...they often come from pressure put on by bondholders and lenders and other stakeholders ....
The idea that the dividend decision is all down to Emma is ...wide of the mark IMO
Too many seem to put way, too much emphasis on Emma ...as if she can do whatever she wants with a massive, huge behemoth like GSK ... as if !!
"A dividend cut to 45-50p that will be announced today has already been agreed....." from 80p, don't think that will go down too well, almost as good as halving it.
My buy orders have been set way below current SP .... Walmsly doesn't give SH a second thought it appears ... that will come back to bite her in the rear for sure, maybe not immediately. Many companies that have cut dividend during covid are now looking to raise them once more .... GSK are going in reverse so pension funds et al will have no problem switching to higher returns from elsewhere imo.
With a dividend cut of nearly 50% this investment get's unattractive to me. I would have taken better dividend opportunities where my money is caught, but working for me. Now lousy 1,8%? (after taxes) that's pathetic. Let me guess, board members and ceo will get more money für they "slendered" the company...
Well said Toff
TR6
“the dividend is GSK main stay of real investors- cut
it and lose.”
Cutting the dividend is sometimes prudent when expenditure is needed for more pressing things. As is the case with Glaxo’s split and drug pipeline. A dividend cut to 45-50p that will be announced today has already been agreed.
This update is critical for Walmsly. If it goes down badly she will be under intense pressure from Elliot and other Institutional investors which would make her position untenable. Personally I think she’d be better suited to running the spin-off company rather than the core business.
There has been a concerted bear-attack by hedge funds over the past couple of days who anticipate a negative reaction to the update. It’s good Elliot are on board because if the SP does plunge on short-selling Walmsly will most likely be removed.
I know the Daily Mail support her, but unlike us those venal-peddling moral-meddlers aren’t invested in the company.
TR64 I don't agree with you some of the time BUT in this instance thumbs up to you.
the dividend is GSK main stay of real investors- cut it and lose.
All the charmers on here calling for a dividend cut- it will only harm the long term future of GSK and drive away real institutional investors.
Elliott as more fines for criminal activity with funds that most lawyer see in a life time of asset recovery fraud.
EW is not a vulture or a rook- but when you find out what Elliott is upto- you wil all lose your shirts and would have created the UK new Barings
Same old crew on here- its like a Thailand knocking shop
https://www.amf-france.org/en/news-publications/news-releases/enforcement-committee-news-releases/amf-enforcement-committee-fines-elliott-advisors-uk-limited-and-elliott-capital-advisors-lp-failing