RE: TheRobinsNest5 Feb 2015 22:38
See more downside than upside with earnings here...
This is not the place to tell people to sell and move elsewhere. Sorry. You have to do your own research.
What I can say is I own around 30 stocks, so I'm well diversified, and this low oil price will probably help airlines.
Maybe I'd side with moving your stock to GSK as its the one that has a better growth prospect. AZN is overvalued at 18.5times earnings to GSK which I believe is 14 times earnings. You always use this as a measure. You try and buy stocks just below the FTSE average and sell once they outperform the FTSE100, plus you are getting a better dividend with GSK. GSK would be valued at over 2000p if it was in line with competitors NVS, JNJ, SNY, BMY, MRK.
At present as I have just posted Pfizer has made a purchase on Hospira a US pharma valued at $17bn, from its $33bn cash pile.
I can't see any future bid coming, thus the present premium that is being paid for AZN stock has to be due a re-rating downwards to below 4000p.