RE: Share Price12 Oct 2016 21:33
SS - I think the question is why would you want to invest in GSK in the first place and only then does price become an issue. Generally its seen as a reliable, safe income share. I would only agree with the latter, safe is relative term anyway. Reliable? again relative, possibly more than some aim shares but its had its moments.
“Price is what you pay, value is what you get.” I think was a Buffet quote.
From memory I can't remember how much hedging they have in place, RR. suffered when they pointed out it had hedges running for years. The income payout ratio is quite high too and the 80p payout ends in 2017. Then what?
Hopefully it can grow into its oversized coat but the new girl might like to get it tailored and cut the cloth so as to be more mobile. Would you be happy with half the divi?
Personally I hold these but the dividends are not being reinvested back here right now but the pot is waiting for any pullback. Then again I like to invest when a share is below its 200 day avg and offers a bigger yield, well for an income share anyway. I don't have to buy right now.
Woody, starting a new fund, would probably have to buy a wodge of em anyway but he is spending others peoples money. Then again he looks quite long term so maybe he sees the value not the price.
GL