GSK Share Price

sevenhills

wmb194 said:

With its planned 2022 split into separate pharma and consumer healthcare companies it's becoming an M&A breakup play as there's speculation that these separate companies will be small enough to look tempting to others. IIRC it's still promising dividends of 80p for 2021 but this will need to be cut.

I bought in at 1,369 if I am making a good profit before that, I may sell in order to avoid double-dealing charges.

Sally57

MichelleN said:

I was very fortunate to have sold my holding of GSK in my SIPP at approximately £17 so made a good profit on the share price with dividend payments on top. I was going to buy in again last week mainly because I feel the current share price is very undervalued. However, now that the Elliott hedge fund has bought in this is a very interesting prospect so I have decided to buy back in on Monday. In my opinion the share price is still very low so I can only see it going one way from here. Let’s see....

Let’s see indeed. I also bought into GSK last week for more or less the same reason.

Sue58

It will be very interesting what happens next. GSK has been massively underperforming and if anybody bought in at £17/£18 then they must be reeling! However, I agree the share price is undervalued but the CEO and the Chairman of the board have to accept responsibility. Therefore, the Elliott interference may get them more focussed more for their shareholders.

maxsteam

In my opinion none of the suggested reasons explain such a large swing in such a short time. Next week Q1 results will be published. There may be some good news there.

MichelleN

There has been media reports stating that GSK maybe considering an IPO instead of a demerger for the consumer brands part of the business. If they do move forward with an IPO this would be very bad news for existing shareholders as they would have to pay again for shares they already own! Surely this would be unwise and prove to be a bad move towards their loyal shareholders?

wmb194

MichelleN said:

There has been media reports stating that GSK maybe considering an IPO instead of a demerger for the consumer brands part of the business. If they do move forward with an IPO this would be very bad news for existing shareholders as they would have to pay again for shares they already own! Surely this would be unwise and prove to be a bad move towards their loyal shareholders?

The cash raised from effectively selling the consumer brands company would be due to GSK so in theory, net-net it shouldn't make any difference as that cash would be reflected in its share price. I guess it would just boil down to whether you want to own shares in the consumer brands company or not.

Thrugelmir

wmb194 said:

MichelleN said:

There has been media reports stating that GSK maybe considering an IPO instead of a demerger for the consumer brands part of the business. If they do move forward with an IPO this would be very bad news for existing shareholders as they would have to pay again for shares they already own! Surely this would be unwise and prove to be a bad move towards their loyal shareholders?

The cash raised from effectively selling the consumer brands company would be due to GSK so in theory, net-net it shouldn't make any difference as that cash would be reflected in its share price. I guess it would just boil down to whether you want to own shares in the consumer brands company or not.

As Tesco did. The excess capital is then returned to existing shareholders. Whether to invest in the IPO is a different question altogether. 

wmb194

Thrugelmir said:

wmb194 said:

MichelleN said:

There has been media reports stating that GSK maybe considering an IPO instead of a demerger for the consumer brands part of the business. If they do move forward with an IPO this would be very bad news for existing shareholders as they would have to pay again for shares they already own! Surely this would be unwise and prove to be a bad move towards their loyal shareholders?

The cash raised from effectively selling the consumer brands company would be due to GSK so in theory, net-net it shouldn't make any difference as that cash would be reflected in its share price. I guess it would just boil down to whether you want to own shares in the consumer brands company or not.

As Tesco did. The excess capital is then returned to existing shareholders. Whether to invest in the IPO is a different question altogether. 

Perhaps, but it doesn't have to be returned. It could instead be used to invest in something pharma related e.g., R&D, buying a or multiple smaller pharmas. If it doesn't want to be a takeover target itself it might be a smart move.