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"I decided to ditch my Haleon shares a couple of days back at just under £3.20 and reinvest the proceeds in more GSK."
I'm still keeping an eye on both, although it's far more likely I'll get back into GSK than HLN.
I decided to ditch my Haleon shares a couple of days back at just under £3.20 and reinvest the proceeds in more GSK. The SP movement in the 2 has been favourable since. Logically, if that's how you can describe what passes as such with me, I would never have invested originally in a pure consumer products company marketing flashy and expensive generic items at a time when consumers are feeling the pinch and will be looking for cheaper alternatives.
Reasonably happy with the direction of HLN as I don't have funds to top up this week. Will get some meaty dividends at the end of today however and may buy on Monday. Probably not at the bottom though!
"Sir Dave will receive total fees of £700,000 per annum as Non-Executive Chair of the listed Consumer Healthcare company and will be required to invest an element of his net fees in company shares"
Looks like, at 316.7p, he didn't get the best of prices for his 200,000 worth of shares yesterday. Down well over 13,000 already.
Thanks for clarifying!
The shares are being dumped today and all through yesterday after the management statement. They hit circa £3.19 and then turned around and it has been down all the way. I am tempted to get in at the current price. I am a previous old GSK holder for over 20 years, buying and selling.
Thanks for the post MagicFinance. Could you confirm the source for future reference / further reading? Many thanks.
I'm holding HLN as a split from my GSK holdings, and trying to decide whether or not to add to them. For me it would likely be a long term hold, expecting low-medium capital value growth and steady dividends (After the first couple of years as the company finds it feet, so to speak). Obviously the current Debt/Equity ratio is a cause for concern.
From the recent results release I note the following point (Page 2) '...and Net debt/EBITDA below 3x
by the end of 2024.
Current Debt/Equity stands at 40%.
My back of a fag packet math puts HLN's current Net Debt / EBITDA at 5.02. So for HLN to hit below 3, they must be looking at change in cash & equivalents growth, Net Debt pay down and/or EBITDA growth.
The fact HLN have identified a Net debt/EBITDA target and put a date on it gives me confidence that they aren't just putting their heads in the sand and ignoring that particular problem. Personally this moves me towards a weak buy from hold.
Any other thoughts? Comments?
They had informed shareholders of the debit transfer to Haleon on quite a few occasions if you read past RNSs you would know that . :-).
Boxthefox, I thought GSK were transparent in the prospectus, on the debt and dividends. Please read page 12 for the debt provision and dividend payments to GSK as Balancing Dividend, Pre-Demerger Dividend and Sweep-up Dividend.
As for future dividends they spell this out on page 15.
Certainly on the debt there has been plenty of material published on the internet, that GSK was to load Haleon with a certain debt and they flagged this as a concern.
So the GSK side of the business, keeps the dividend and lumps the debt on to Haleon. It would have been useful if they had mentioned the dividend and the debt and their plans for them. Existing GSK/Haleon investors will get a dividend but new investors in Haleon don't have much to look forward to.
I don't believe so. The profit and dividend was accumulated under the GSK ownership. The trading statement indicates that both GSK and Pfizer were paid a dividend by Haleon. I would be surprised to see a dividend after less than a month of trading.
I guess it really depends how much squeeze we are looking at. What gives me greater confidence is that (IMO) it boils down to macro economic factors, rather than a failing of the company. The quote in the report runs something like
'operating margin ... is expected to be slightly down'
Given the global operating environment I'd be surprised if it wasn't TBH.
But margins being squeezed.
H1 revenue increased +13.4% to £5,188m, organic revenue growth +11.6%
https://www.lse.co.uk/rns/HLN/h1-trading-update-six-months-ended-30-june-2022-48k9v2g59ugxiov.html
Hi Seaking1, thanks for your thoughts. Personally I wouldn't say paying off the debt will be "easy" but will be happy to be proven wrong.
I suppose we will get to hear about the dividend soon, I think it was to be 11p for 2023. I want the divi so let's hope for some balance.
As for getting bigger, I wondered what they thought they could add to their stable but expected a period of consolidation first and to see the cash start to come in. Won't they be paying GSK fees until the hln only earning kick in.
I'm keeping my current holdings awaiting the first update or two.
trading update tomorrow
I find it quite amusing with some comments on other boards about how stupid GSK board was in not excepting Unilever’s offer . I would like to think the board has a bit more nouse than anyone who comment on these chats including me . It’s not about the quick buck now it’s about the potential of Haleon for the future which in my view will be vindicated in the end of year results.
Longtime, definitely agree with your comments. Haleon should make enough cash (profit) to make a dent in the debit within a year. :-).
box
''unless there is some negative news about future dividends''
I am sure we will soon find out the dividend policy which is likely be in the form of paying out a certain percentage, or within a range of percentages of earnings.
Personally I would like t see this payout percentage at less than 40% of earning so as to start making a dent in the debt pile
Morrymy....... Pfizer said they would start reducing their holding from Nov22 in an organised phased fashion. They won't throw all their shares into the market in one go, but bit by bit, to try not to knock the share price. Holding reasonable sp also in their interest. There must be a minimum sp that Pfizers require, below that and they won't sell !!
The Haleon board meets on the 27th July for a trading update. I cannot imagine any negative news. It will be all upbeat with whistles and bells. This should give a boost to the share price unless there is some negative news about future dividends etc.
There is no "if" US rates rising by 0.75%. Pfizer and GSK are planning to reduce their large holdings in November when the lock up period ends. Might be a good time for entry.
I am the same. Down to 305 at the moment. I wanted to pick them up at 298 late last week but the price ran away from me and decided not to buy at 303......mistake.......could have made a quick killing. Dow Jones futures are up over 100 points as I type so there might be a boost later on.
I’m waiting to see if the-fed raises interest rates . If they do it should have a negative effect on Haleon sp I hope at which stage I will be buying although I’m itching to buy now.