Member Info for Newtrader87

I am glad I didn't unload - lots of negative comments but 8.2% up.

Usually it's lots of positive comments - get in quick then a disaster drop immediately followed

Lots of chat of low averages however my average is £7 after buying in 2 years ago at £52+ and averaging down 10 times and still sitting on a 42% loss but I refuse to give up! Are there others here who have shares bought in at £52+?

Careful I did that with Direct Line and they were not long in slashing the Divi.

I bought this at £51 a share.
Managed to get it down to £13
I will never forget it was between Asos and Next.
It has been painful.

I had wanted to buy Asos for a while, along came a tip in an article and I thought this is my moment, so I got in at £51 - averaged down at £35 then, £25, £18,£11 and £9. The same author of the article (I wasn't buying due to the article it was just a prompt) is now plugging the same article accept his new target is £12 not £60 but with all the same reasons for when he tipped £60. What a dog of a share! Time to exit I think as averaging down doesn't work here.

I have bought twice, currently down 40% - I'd like to buy more but the spread is always very high 5%+ do other people buy with these kind of spreads ?

I have been sitting on these shares doing nothing for a while now, I bought in when I read an article showing how Ashley's Son in Law stood to make a fortune by doubling the share price. Thought about selling a few times but glad I held. A rare success in my portfolio of dogs.

Drug development is inherently unpredictable — a risk brought into greater focus by the patent expiry of Dolutegravir, the most used HIV treatment in the world, in 2028. But positive phase three results from the company’s RSV — or respiratory syncytial virus — vaccine trial earlier this year are a reassuring and tangible sign of GSK’s drug- replacement potential. An interim analysis of the results showed “statistically significant and clinically meaningful efficacy” in adults aged 60 years and above. A final reading of the results and application for regulatory approval in the US could come later this year. Analysts at Jefferies reckon the vaccines franchise will drive more resilient growth in revenues, increasing to 40 per cent of “New GSK” revenues by 2031, from 28 per cent this year.

GSK retains a 6 per cent stake in Haleon, which it plans to sell down at some point after the lock-up period expires in November. That will deliver another cash windfall, which could be used to fund more M&A and/or drug research. A bid for Haleon would lift the value of that stake and provide a bigger payday.

The prospect of a beefier drug pipeline has not come without sacrifices: the company will pay an aggregate dividend from GSK and the consumer healthcare business of 52p this year, and 45p next year from the new GSK as part of a progressive dividend policy — compared with 80p paid by the unified company last year. For investors who ditch the Haleon shares granted to them under the demerger, that strips GSK of its income stock status, with next year’s dividend equating to a potential yield of 2.5 per cent at the current GSK share price post Monday’s share consolidation.

However, if early signs of progress this year prove an accurate indication of more to come, then GSK’s valuation could move closer towards drug-development peers.

Advice Buy
Why A stronger balance sheet and shift towards higher- margin product categories could help close the shares’ discount

Sales growth guidance of 5-7 per cent for this year excludes the impact of that deal, and any more M&A activity, as well as any contribution from Covid product sales, which are mainly accounted for by the monoclonal antibody Xevudy, developed in partnership with Vir Biotechnology.

Instead, the pharma group is betting on its shingles vaccine, Shingrix, which accounted for almost 10 per cent of ex-consumer healthcare sales during the first quarter. By shifting into higher-margin specialty medicines and vaccines, which are expected to grow to about three-quarters of company sales by 2026, management reckons it can grow adjusted operating profit ahead of the rate of sales, at between 12 and 14 per cent this year, and at a compound annual rate of more than 10 per cent out to 2026.

That means directing cash freed up by the demerger into plugging the R&D gap in four core therapeutic areas: infectious diseases, HIV, oncology, and immunology and respiratory. In each of the five years prior to Walmsley’s appointment, R&D spending either contracted, or lagged revenue growth. Since then, spending has kept pace with revenue growth, a trend that GSK seeks to continue repeating. The company had 64 vaccines and medicines in its R&D pipeline at the end of March, compared with 40 at the same point in 2017. The amount spent on late-stage treatments has also doubled.

GlaxoSmithKline had suffered from a punishing identity crisis — one settled by the long-awaited demerger of its consumer healthcare arm via a listing on the London stock market.

The pharmaceutical giant’s next task is to prove to investors that it can use the extra cash and balance-sheet strength imbued by the separation to refill its drug pipeline and push revenue and profit margins higher.

Perennial under-investment in research and development has stoked market concerns that the FTSE 100 company will be left heavily exposed to a steep fall in revenues as patents expire. The result? GSK’s underperformance next to pharma peer AstraZeneca has become entrenched — a trend that has continued into the tenure of current chief executive Dame Emma Walmsley.

GSK has generated a total return of just under 45 per cent since she was appointed in 2017, versus 165 per cent by Astra, but then Astra’s sales have risen at a compound annual rate of 10 per cent over the past five years, against 3.4 per cent at GSK’s pharma arm. Some of that can be attributed to Astra’s part in developing a Covid vaccine, but not all.

However, GSK stands its best chance yet of closing the gap. An enterprise value of just over ten times forecast earnings, before tax and other charges, represents a justified discount to Astra. But that valuation is also in line with GSK’s long-running average and gives little credit to the prospect of reduced leverage and better earnings growth.

The spin-off of the consumer healthcare business, since rebranded Haleon, granted the newly slimline GSK a £7 billion cash dividend, which should help cut leverage and free up cash to spend on R&D and bolt-on acquisitions.

Broker Jefferies reckons net debt for “New GSK” will come in at £12.8 billion at the end of December, equating to 1.4 times the adjusted earnings that Jefferies forecasts for this year — from a multiple of 2.2 at the end of last year.

The acquisition of the Nasdaq-listed rare blood cancer specialist Sierra Oncology earlier this year, for $1.9 billion, is a blueprint for the type of deal that GSK will look for with its richer cash resources. Sierra’s lead product is momelotinib, a drug for myelofibrosis, a rare type of bone marrow cancer, and anaemia, a symptom of the disease. Unlike early-stage treatments, there is a real prospect of the deal contributing to revenues in the near term.

A submission to America’s Food and Drug Administration for regulatory approval in the US is expected in the second quarter of this year, before it is likely to begin generating sales next year. Analysts are forecasting peak revenues of $630 million (£525 million) by 2030.

Positive late-stage clinical trials in January had caused Sierra’s shares to almost double during the first four months of the year, even prior to the GSK deal, but market turmoil could thwart the chance to pick up other biotech companies more cheaply.

Hi, I bought into this share at 70p. I want to average down but the spread moves from 1.30 - 5%+

Is this one of those shares where I need to accept a spread of 1.3 or does it drop lower?

Hi Everybody, I currently only own 100 shares, I’m new to all this, should I buy more today in order to round up my holding to the nearest I.e 141 shares COP allows me to buy 93 new shares instead of 62? Obvs with my buying fee I’d probably be as well rounded up to more like 188. Or does it not work like that? I intend to hold for longer term. Any advice would be appreciated.