Member Info for fatprofits

Well I do both so perhaps where the confusion lies.

That's my gut call on GSK, some nice value creation by the end of 2022,
obvs only a guessestimate. Reserve the right to be wrong ).

Cable possibly heading near 1.50?.

Poker, as you are probably aware there is a quote from Paul Tudor Jones
where he says...I start every trading day with the mindset that every position
I hold could be wrong - in other words he continually reassesses positions.

However, on GSK, my own gut call would also be a buy and hold for 2 years (post split)
May pay off nicely - gut call Only would stress.

And sadly I'm not a multi billionaire and PTJ is.

There is comment elsewhere that Dodge have held GSK for the last 10 years,

it's not something I'm aware of tbh.

"...the Fund typically invests in companies that, in Dodge & Cox's opinion, appear to be temporarily undervalued by the stock market..."

The above is a very short extract on their Global fund information.
Much more info on their website for anyone particularly interested!.

Tbf I think it's post split that a fairer assessment can be made.

Let's see the combined value of CH and GSK is when separately listed.

Was quite funny!!.

Just to clarify my handle 'fat profit' is intended as self-deprecation
as I carry a bit of extra timber ).

High PE does look a tad exposed currently.

There are UK listed stocks such as Oxford Instruments(OXIG)
that I've held over the years, where I've sold due to valuation -
Just one example.

Don't spend too much time attempting to rationalise day to day price action,
there are a myriad of reasons on any particular given day or week.

Cable nearing 1.42.

...sucked in to the abyss...may be overstating it !.

Better today )).

I dont think it's trying to see around concers to be fair.

They have provided pretty firm FY 2021 guidance, which yes is subject

to change, however risk there, at least for 2021 does Not look to the upside.

For FY '22 there exists a possibility of some upgrades obvs, as well as the reverse.

Hopefully.

The multiples investors are willing to pay for many

of the large pharma companies atm.

And most of these are US listed, with their boom time equity markets.

13.5 - 15.5 X is an approx range.

GSK, even at these levels, trades on a 2022 X of approx 13.5 X.

It's not out of line with the wider sector.

Particularly when taking account of GSK net debt levels,

which are higher than many sector peers.

OK Adastra, that's not substantive, it's merely subjective.

However, it's as good a view as any... etc, luck with your holding.

It's sometime since I've read his famous book,

but from memory one of his key rules on valuation was

to pay No more than a multiple of 10 X EPS

for a company that was not growing earnings.

I did not expect a reply!.

Very easy to use words like 'quality' and 'cheap'

More difficult to define them, eh.

Define quality and cheap... on what basis.

barchid, there has been some significant ratings compression

for much of the sector over the last 12 months.

There are some exceptions, but should GSK be trading

on a higher rating than Merck?, imv no.

Would sell on 22 X earnings 2022 consensus.

Pfizer sells on 13 X 2022 and Merck on 15 X.

GSK on over 13.5 X looks reasonably priced, potentially interesting,

but a bargain basement level?, No imv.

All just imv, only.