Astrazenica or GSK

moneylover

Have been thinking of investing £3000 in one or the other as a defensive stock with reasonable dividend.
I dont really know which one to go for and not sure it is possible to sensibly choose but both now ex divi today and so have dropped. GSK has gone down .2% Astrazenica by .9% which makes it look quite cheap. Why as they are similar stocks would they have gone down different amounts - I am not sure if there is something I am not understanding

IronWolf

AZN has a higher dividend yield so % wise will drop by more than GSK.

I researched both companies and only hold GSK, which I felt was the only one worth buying. AZN is cheaper compared to earnings but impending patent expiries mean its hard to predict what they'll be earning in a few years, evidently people are predicting a large decline which probably wont be far off the truth.

GSK on the other hand, although it has patent expiries coming up it has a far more diversified revenue and a much better pipeline of new drugs to replace them.

I still think GSK is relatively cheap and would probably buy now if I didnt hold it.

Glen_Clark

Bit more opinion here: http://www.telegraph.co.uk/finance/markets/questor/8968783/Questor-share-tip-Avoid-Astra-buy-Glaxo.html

IronWolf

Glen_Clark wrote: »

Bit more opinion here: http://www.telegraph.co.uk/finance/markets/questor/8968783/Questor-share-tip-Avoid-Astra-buy-Glaxo.html

Oh dear, the fact that some tipster seems to agree with me is making me question whether I'm actually right or not

I suppose they have to be right sometimes.

atush

I had the same choice a few months back, and chose GSK. Both have drug patents comong up to expiry but my take was GSK had a better outlook. Bought just over 13 quid per share and is now over 14 so I am happy enough with my choice.

moneylover

ok, GSK it is, thank you everyone!

lvader

GSK looks overpriced, AZN for me.

moneylover

well, for now then I will put both on my watchlist and wait and see how prices move, I dont have any feel for what i should pay for either

atush

Well, GSK has risen a pound or more since I bought- didn't feel over valued to me then.

but time will tell like with everything. I only buy every so often as I am paying for Uni so don't has as much disposble as before.

My next buys will be funds I think.

JonnyBravo

Wouldn't be buying either.
I'd be buying Sanofi or Novo-Nordisk, but they're not UK listed and so may be more complicated for you.
They're also both at relative highs so I'd be looking to time an entry.
Both are diabetes powerhouses and that's going to be a massive driver of growth as time passes. Novo is strongest in diabetes, Sanofi is more diversified and is also strong in oncology and the Genzyme takeover was a good move.

All just in my opinion of course.

atush

of course, you are betting that diabetes will remain insulin based.

But given stem cell research and completely unexpected drug discoveries (such as cancer drugs being a possible cure for Alzheimers) you could be betting the farm on that income stream.

but given the ever fattening population (and ever increasing D type2) you could be on to a winner. Again only time will tell, but i am a stem cell girl.