Member Info for CSDI1962

I don't think the big pharmas wil be profiting from CV19 work. There will be a huge R&D cost. All businesses have hadto adapt to working with CV19 restrictions for most of this year, which is likely to have a chunky effect on bottom lines.
Even before CV19, GSK was a dull (almost utility like) stock whereas AZN was perceived to be a growth stock. The market loves growth stocks but dislikes dull stocks. for a value investor it is a tough gig, where patience is the biggest factor. Last weeks news that Amazon is getting involved, can only be bad news.
I have rarely seen the market "make sense" to us little investors, as we are the pawns on the chess board, manoevred for the big pieces to strut their stuff !
GLA to GSK followers

Hi Refnet, That's a 64 million dollar question which most traders & investors would love to know.
It depends on whether the market goes north or south after the ex div date ! And no one knows the future.
Hindsight will tell us the correct answer.
For many years I have invested with a heavy bias towards HY shares, as I like the idea of dividend income.
sometimes it works out well and sometimes not. I have an unlucky relationship with shares in that twice I have had opportunity to invest a decent sum and both times have done horribly.
My first main effort was with a very small pension transfer (17K) in 2007. I bought a number of shares mainly following the Midas Dogs of the FTSE idea and wow did that go tits up ! I bought 5 or 6 bank shares in May/June 2007 and watched as the values fell and fell. I bought Lloyds at £5.60 approx, before the rights issues of 2009-2011. Those shares would now be worth approx 1/3 of the current price of 35p - so capital destruction of approx 98%. Not to mention the 100% loss in Bradford & Bingley ! Somehow I managed to get most of my capital back and closed the pension account in 2017 with a loss of under £1K, which was mainly due to divis received of approx £7K over the 10 yrs. Without the divis I woud have lost near 50%.
Anyway the best answer I can give, is that buying just before ex div is a good strategy in a rising market, as the "rising tide floats most boats". In a downward market it just seems to compound problems.
With IMB in my current SIPP, I first bought in Jan 2018 at £29 with a forecast divi of 6% or so. Now the price has dropped about 50% and the divi dropped to 137p per share from 207p per share. Current yield is 4.7% on that original cost, but I have since added a number of batches at £21, £16, £15, £14, £13, and today at just under £15, so have an average cost of £17.80
The divis are paid quarterly so make a nice contribution to regular withdrawals, although there is an odd payout of 1/3; 1/6; 1/6; 1/3 over the calender year. Fingers crossed it all works out.
Cheers - CSDI

Hi All - thanks for your responses.
I have gone ahead with another batch of IMB@ 1483p this morning. Intended as a very short term trade around the ex-div date next week of 48p (3.2% of SP). Means that my IMB holding gone up to nearly 29% of my p/f temporarily. Probably too much in one share but will not complain if SP heads north for a while.
And thanks to BtheBanks for the BRWM idea. This has been on my watchlist for some time with a current divi around 5%.
BRWM has done much better over the last year than BERI. Looks like I picked the wrong one again back in March 2019, when I considered these two as an option. Hence the name C S D I .

Thanks Bebeto. After consideration I have bought some IMB @ 1483p this morning.
This is intended as a very short term trade around next weeks ex-div of 48p.
Fingers crossed it works out.
Cheers - CSDI

Thanks positive-e . With the IMB divi date coming I might try a trade their first, with a target of 10% profit. If lucky move funds to GSK and try same idea. Rinse and repeat in my dreams LOL. I have topped up both GSK and IMB in the last month, so can trade those batches or hold longer term as core holdings. either way, I am trying to find the best way to maximise profits if I can. I think IMB has the greatest potential long term capital rise, but GSK has a better defined trading range of buy below 1450p and sell above 1600p. Cheers CSDI

Hi Tomglan - thanks for reply. LGEN has been on my watchlist for a long time but never actaully purchased. I have had Aviva a couple of times over the years and currenlty hold SLA, which is more focused an an investment house now, away from traditional Life assurance etc. I am happy with the SLA divi which has been maintained through Covid, but expect a future cut as divi exceeds EPS forecasts. My original purchase in early 2018 has been diluted by a restructure, and after another long-term downhill spiral leaves me approx 23% down on the capital side, but the accumulated divi covers 16%, so another year divi will get me back to break even assuming SP stays where it is around 270p. Happy to hold for long run. As the FTSE has dropped from around 7600 when I started this 'folio , suppose I am just about beating the market (well losing less ...). Hence the name C S D I = Crap Share Dealing Ideas

Hi Andsoforth, Thanks for replies. Certainly thrown up some options to consider. Looking at BATS, I decided in jan 2018 to go for IMB as my choice of Baccys. The IMB yield has been higher than BATS and the P/E ratio is only about 2/3 of BATS. My first purchase was at £29 - ouch ! - but top ups bring average cost to 1855p. The orginal divi of 207p has been cut down to 137p, so still a big yielder. Also an outside chance of potential bidder while SP is depressed. I really think IMB has at least 40% upside from here (around £15) and that would take the P/E to only 7 or 8.
GSK has a better long term trading range - buy at £14 to £15, sell at £16-£17. I have done this several times since 2007 when I started investing. A steady divi of 80p p.a allows you to wait for target SP to be hit. No similar history with IMB, which has been on a huge decline from £40 in 2016, down to almost £12 recently before it's recent climb back commenced. This despite earnings over 250p per share for several years !

I have just sold some ASEI as part of my pension and want to reinvest in a FTSE100 HY share. My aim is to generate approx 5% or more in dividends. I already have 23% of my pension in IMB and 17% or so in GSK. I have 9% in RDSB and 8% in SLA. The portfolio is concentrated as it is only small value, so no point in having lots of very small holdings. There is 26% in funds (BERI, CTY, NCYF) which all yield in excess of 5% p.a and 10% in IUKD, with remainder in cash which is what I want to reinvest. The FTSE100 shares are all currently in the red as they were bought in 2018, with later top ups, except GSK has been bought over the last 4 months. My intention is to withdraw the dividends as a small income and try to retain the capital for longer term. Which share do you think will give me the better return ? I am happy to sell the shares when they reach a set target and repurchase other HY shares.
PS. I have copied this message to the IMB chat as well
Cheers - CSDI

I have just sold some ASEI as part of my pension and want to reinvest in a FTSE100 HY share. My aim is to generate approx 5% or more in dividends. I already have 23% of my pension in IMB and 17% or so in GSK. I have 9% in RDSB and 8% in SLA. The portfolio is concentrated as it is only small value, so no point in having lots of very small holdings. There is 26% in funds (BERI, CTY, NCYF) which all yield in excess of 5% p.a and 10% in IUKD, with remainder in cash which is what I want to reinvest. The FTSE100 shares are all currently in the red as they were bought in 2018, with later top ups, except GSK has been bought over the last 4 months. My intention is to withdraw the dividends as a small income and try to retain the capital for longer term. Which share do you think will give me the better return ? I am happy to sell the shares when they reach a set target and repurchase other HY shares.

Oh heck I am in a mess with my shares on this one. First bought at 2688p in July 2018. Have added some more but still average cost is a long way from here at 1737p. I was comfortable when the divis were 47c per qtr, but now at 16.65c it is a very long road back. No funds left to average down unless I sell other holdings. Having started my SIPP in Jan 2018, all of my FTSE100 shares are deeply red, which accounst for approx 55% of my portfolio. The other 45% is in a mix of high yielding trusts and funds including IUKD which are now just above break-even after the rally since 31/10. Would like to get out of oil but don't want to crystalise the loss, so caught between rock and hard place. I suppose patience needed and will just withdraw divis every 3 months or so. My current yield is a little over 6%, so if cen get back to b/e on the capital side over time that will be fine.
Good luck to all !
And by the way - CSDI - my acronym for Crap Share Dealing Ideas - as always manage to mess up

It depends on your time scale - are you trading or long term investing ?
Trading is frought with danger - there are so many opportunities and pitfalls. Most traders lose money. A few are very good and make a good living. According to adverts for spreadbetting/CFDs approx 70-80% of retail investors lose money !
GSK is a fairly reliable and dull share. The dividend has been held at 80p p.a for many years now (at least 6 yrs). My first purchases was back in 2007 at approx 1350p, and it took a long time to recover after the financial crash. I have bought GSK several times over the years and always managed to make a profit eventually.
for this year I have been buying sice July, when its price was just over £16. I now have an average price of £15.10 after some small top ups to average down. I am confident the SP will return to £16 over time, and will just sit and wait, and pick up the quarterly divis. My main focus is deriving an income from dividends, and no rush on buying/selling. This is in a pension wrapper where I take out dividends roughly every 3 months. For me I would hold and be patient but have an exit price in mind. Don't let current news cloud your view of the longer term. We all tend to focus too much on today. Just two weeks ago the FTSE was around 5600 and who would have predicted it would jump to 6300/6400 so quickly ?
Good luck

Ex div date is 26/11 and pay date is 31/12 at 48p
Next one is 20/2/21 and paid 31/3/21 at 48.01p
Very juicy divi yield.
P/E yesterday was around just 5.2, approx 50% uplift to get to BATS P/E of approx 7.8
I have a big loss at moment, as first bought at £29 in Jan 2018. Have accumulated since, and now got average price of 1855p.
At least have picked up some lovely divis but need to be patient.
GLA
PS. My first post on here