GlaxoSmithKline 💊 💉- GSK

Just been announced that gsk will be filling and finishing the 60 million doses of Novavax COVID in the UK. Share price been steadily going up last month and still way below the peak, guna add more to my portfolio whilst it’s low

Definitely scope for further growth. I’ll be looking to top up as well.

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And yet the share price doesn’t change! I was expecting to see this good news reflected in the SP, but nothing🤔

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It’s one step forward and one step backwards. Rumours about them splitting the company create uncertainty and keep the SP low too I guess.

Another interesting development which I would say is positive and GSK jumped on the news:

Hedge fund Elliott builds up multibillion-pound stake in GSK - Subscribe to read | Financial Times via @FT

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Yay! That’s a nice vertical line!

Oh good, good! I hadn’t looked at any of my UK stocks this afternoon, so this is a nice surprise! :smiley:

I can’t read the article because it’s behind a paywall, but I’m thinking this must be an attempt to take over the company and break it up, asset stripping and selling it off. Another British company bites the dust?

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Well, they’re already kind of planning to do this to themselves, and it was announced months ago:

From my understanding, splitting a company up like this is usually beneficial overall for the stockholders, but usually the newly created company has better earnings potentially and the parent company ends up with the less profitable stuff.

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Yes, that does seem to be the pattern it usually follows. I know they were planning on splitting the company, but I just think it’s sad that all these British companies end up being bought out, often by powerful American companies. Good for a quick profit for the shareholder etc, but bad for the country in the long term. Oh well, that’s the way it is. Just have to wait and see what’s next!

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Hedge fund Elliott: The firm is renowned for its ultra-aggressive business strategies, often buying stakes in troubled firms and then dismantling them piece by piece.

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If the vaccine they were developing with Sanofi had been a success, it would be a very different story. If.

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Elliott Management takes a multi-billion pound stake in GSK. Will Walmsley be out?

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If GSK is an US company then the share price will be much higher. I have reduced my holding of GSK and switched to $VIR, the partner of the COVID treatment. I am looking forward to the de-merger as you do need two specialist CEOs to focus on the two businesses. I will add on weakness before the de-merger. If you bet the Government will permits takeover by US (unlikely and definitely not by EU) then it will rocket. The de-merger will push one of the FT100 out and the index will be suffered. Tracking Indexes are sitting ducks for the investors, just easy money for the fund managers.

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This is Money reporting today that the expected dividend cut may be announced this week.

https://www.thisismoney.co.uk/money/markets/article-9703741/Emma-Walmsley-takes-huge-axe-GlaxoSmithKline-dividend.html

That’s a hefty reduction if accurate and presumably more than many investors will have expected, though may be mitigated by the spin off of the consumer division next year.

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