GlaxoSmithKline PLC

GSK-N

NYSE:GSK

43.08
0.32 (0.75%)
GlaxoSmithKline plc is a British pharmaceutical company headquartered in Brentford, London. Established in 2000 by a merger of Glaxo Wellcome and SmithKline Beecham, GSK was the world's sixth largest ...
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Analysis and Opinions about GSK-N

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Opinion
Expert
COMMENT
COMMENT
January 17, 2020

He was concerned that GSK was getting more growth focused. They spun off their consumer products with Novartis, giving up their oncology department. Now they have a joint venture with Pfizer. Having it as a longterm asset is probably positive.

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He was concerned that GSK was getting more growth focused. They spun off their consumer products with Novartis, giving up their oncology department. Now they have a joint venture with Pfizer. Having it as a longterm asset is probably positive.

COMMENT
COMMENT
January 17, 2020
He owns this right now, though they are facing competition in the space. He likes their HIV franchise that continues to do well. They also have a solid franchise in respiratory. They are shifting to a more growth focused model.
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He owns this right now, though they are facing competition in the space. He likes their HIV franchise that continues to do well. They also have a solid franchise in respiratory. They are shifting to a more growth focused model.
DON'T BUY
DON'T BUY
October 28, 2019

The cost of bringing a new drug to market hasn't changed, but the customer base has shrunk. Same costs, smaller revenue base. He likes healthcare for being recession-resistant, but he prefers a medical device company like Stryker.

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The cost of bringing a new drug to market hasn't changed, but the customer base has shrunk. Same costs, smaller revenue base. He likes healthcare for being recession-resistant, but he prefers a medical device company like Stryker.

COMMENT
COMMENT
September 27, 2019

Bristol Myers's latest drugs haven't done as well as they thought. GSK has refocused into pharmaceuticals, and they sold off the consumer products division. After 5 years, they have both come to be around the same price. He would prefer GSK.

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GlaxoSmithKline PLC (GSK-N)
September 27, 2019

Bristol Myers's latest drugs haven't done as well as they thought. GSK has refocused into pharmaceuticals, and they sold off the consumer products division. After 5 years, they have both come to be around the same price. He would prefer GSK.

WAIT
WAIT
August 21, 2019

Has pound risk, if there is a hard Brexit. The company is fine, and has a dividend yield of around 5%. Must look at whether they have a strong pipeline of drugs coming to market in the next 5 years. Would rather go with Roche or Bristol Myers instead.

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Has pound risk, if there is a hard Brexit. The company is fine, and has a dividend yield of around 5%. Must look at whether they have a strong pipeline of drugs coming to market in the next 5 years. Would rather go with Roche or Bristol Myers instead.

COMMENT
COMMENT
May 7, 2019
The whole drug sector is under pressure, because every country is managing costs, including America. It's a cash flow industry struggling to maintain growth. Revenues are flatlining. But it's a defensive sector with solid, growing dividends, so he's reluctant to sell them.
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The whole drug sector is under pressure, because every country is managing costs, including America. It's a cash flow industry struggling to maintain growth. Revenues are flatlining. But it's a defensive sector with solid, growing dividends, so he's reluctant to sell them.
HOLD
HOLD
May 3, 2019
Large cap, diversified. Long life assets. They need to find growth and acquisitions. Healthy distribution. Analysts question the dividend. Low growth profile. A strong hold, but be cognizant that they need to buy companies to fill out the pipeline and keep up the dividend growth.
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Large cap, diversified. Long life assets. They need to find growth and acquisitions. Healthy distribution. Analysts question the dividend. Low growth profile. A strong hold, but be cognizant that they need to buy companies to fill out the pipeline and keep up the dividend growth.
DON'T BUY
DON'T BUY
December 7, 2018
TEVA vs. GSK Teva is in turnaround with a lot of debt to pay off. They need a boast from their future products moving forward. GSK is higher quality with higher credit rating, and lack Teva's debt woes. GSK is the better bet.
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TEVA vs. GSK Teva is in turnaround with a lot of debt to pay off. They need a boast from their future products moving forward. GSK is higher quality with higher credit rating, and lack Teva's debt woes. GSK is the better bet.
COMMENT
COMMENT
December 3, 2018
Very frustrating. He likes their long-life assets and consumer health business (consistent cash flows). They have some pipeline. Acqusitions surprised him--in 2016, GSK swapped their oncology assets for vaccine assets of Novartis. Then, they spun out their consumer businesses into a joint venture. It was bizarre they purchased oncology; is it accretive? He thinks they bought it to see where else they can extract value. They paid a hefty premium to buy Tessaro. GSK pays a large dividend and has a strong balance sheet, so good income.
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Very frustrating. He likes their long-life assets and consumer health business (consistent cash flows). They have some pipeline. Acqusitions surprised him--in 2016, GSK swapped their oncology assets for vaccine assets of Novartis. Then, they spun out their consumer businesses into a joint venture. It was bizarre they purchased oncology; is it accretive? He thinks they bought it to see where else they can extract value. They paid a hefty premium to buy Tessaro. GSK pays a large dividend and has a strong balance sheet, so good income.
WEAK BUY
WEAK BUY
May 31, 2018

He likes the volume recently, but expects resistance at $42. He was disappointed that the recent rally didn’t go higher. It has a good yield and looks like a Canadian bank where volatility is not too high. He would use $38.50 as a stop and would like to see it test $42 as an upper breakout target to buy more. Yield 5.2%.

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He likes the volume recently, but expects resistance at $42. He was disappointed that the recent rally didn’t go higher. It has a good yield and looks like a Canadian bank where volatility is not too high. He would use $38.50 as a stop and would like to see it test $42 as an upper breakout target to buy more. Yield 5.2%.

HOLD
HOLD
March 21, 2018

Don't add to your holdings, just hold. Wait till June when the second generic test of a new drug gets passed by the FDA. They have a great HIV franchise. Their capital plans are really interesting, because they may buy Pfizer's consumer division, while Novartis has a sell option to sell back to GSK an earlier swap deal. They are focusing on consumer products. Dividend yield over 6%.

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Don't add to your holdings, just hold. Wait till June when the second generic test of a new drug gets passed by the FDA. They have a great HIV franchise. Their capital plans are really interesting, because they may buy Pfizer's consumer division, while Novartis has a sell option to sell back to GSK an earlier swap deal. They are focusing on consumer products. Dividend yield over 6%.

DON'T BUY
DON'T BUY
March 12, 2018

The pharma industry in the late-90s came out with social drugs like viagra, so the market awarded pharma big growth multiples. But then, these stocks came off. Problem is they were never really growth stocks and now the drug industry isn't coming out with new blockbuster drugs. GSK is developing vaccines, which is fine, but overall, he can't see the previous massive expansion in this space. Currently, the multiples are fair for pharma companies. There's also pricing pressure on drugs in the U.S. as we saw during the 2016 election.

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The pharma industry in the late-90s came out with social drugs like viagra, so the market awarded pharma big growth multiples. But then, these stocks came off. Problem is they were never really growth stocks and now the drug industry isn't coming out with new blockbuster drugs. GSK is developing vaccines, which is fine, but overall, he can't see the previous massive expansion in this space. Currently, the multiples are fair for pharma companies. There's also pricing pressure on drugs in the U.S. as we saw during the 2016 election.

COMMENT
COMMENT
November 1, 2017

Sales of $7.8 billion was up 2%, which doesn't do a lot for his interest. EPS was 49%. You are getting no top line growth or bottom line growth. A lot of their products have been on the market for a long time. They are trying to switch into a new HIV product, but has competition that has been doing it for a long time.

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Sales of $7.8 billion was up 2%, which doesn't do a lot for his interest. EPS was 49%. You are getting no top line growth or bottom line growth. A lot of their products have been on the market for a long time. They are trying to switch into a new HIV product, but has competition that has been doing it for a long time.

TOP PICK
TOP PICK
October 24, 2017

Healthcare was the worst performing sector in the S&P 500 in 2016, but has been a strong performer this year, and this company has not followed suit. He likes that they have 3 very distinct businesses. One in HIV, one in vaccine, plus a consumer products business. The market is undervaluing all 3 businesses. If you were to break the company up into 3 separate distinct businesses, that would unlock significant shareholder value. Dividend yield of 5%. (Analysts’ price target is $45.)

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Healthcare was the worst performing sector in the S&P 500 in 2016, but has been a strong performer this year, and this company has not followed suit. He likes that they have 3 very distinct businesses. One in HIV, one in vaccine, plus a consumer products business. The market is undervaluing all 3 businesses. If you were to break the company up into 3 separate distinct businesses, that would unlock significant shareholder value. Dividend yield of 5%. (Analysts’ price target is $45.)

HOLD
HOLD
September 14, 2017

He has this in his high yield portfolio. GSK-N has their well established pharma and then their Nicolette and other consumer lines. They are getting rid of non-core assets. There is not a lot of growth, but a modest dividend.

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GlaxoSmithKline PLC (GSK-N)
September 14, 2017

He has this in his high yield portfolio. GSK-N has their well established pharma and then their Nicolette and other consumer lines. They are getting rid of non-core assets. There is not a lot of growth, but a modest dividend.

DON'T BUY
DON'T BUY
September 11, 2017

This has had some serious misfortunes. The balance sheet is very stretched. It may be forced in making an acquisition of a Novartis (NVS-N) business which it is contractually required to do. The pipeline is fairly weak. Thinks it will eventually survive, but there is a possibility of a dividend cut. There are better places to be. It might be better to look at this a year from now.

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GlaxoSmithKline PLC (GSK-N)
September 11, 2017

This has had some serious misfortunes. The balance sheet is very stretched. It may be forced in making an acquisition of a Novartis (NVS-N) business which it is contractually required to do. The pipeline is fairly weak. Thinks it will eventually survive, but there is a possibility of a dividend cut. There are better places to be. It might be better to look at this a year from now.

BUY
BUY
July 24, 2017

A great company. Most of these pharmas are pretty safe. He thinks it is a pretty good buy right here.

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A great company. Most of these pharmas are pretty safe. He thinks it is a pretty good buy right here.

PAST TOP PICK
PAST TOP PICK
June 9, 2017

(A Top Pick March 21/17. Up 4%.) He has been beating the drums for international investments because dividends were greater and valuations were better. Also, US healthcare has been so under pressure with prices skyrocketing, and this gave you an opportunity to invest in the European drug company.

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(A Top Pick March 21/17. Up 4%.) He has been beating the drums for international investments because dividends were greater and valuations were better. Also, US healthcare has been so under pressure with prices skyrocketing, and this gave you an opportunity to invest in the European drug company.

HOLD
HOLD
May 24, 2017

Healthcare is being overshadowed by a whole bunch of things, demographics, government policies, etc. He is fairly constructive on healthcare. One of the few spaces that is not trading at an overvalued market multiple. One of the overhangs is the political cloud, but if you can get past that, it is a positive space to be in, and not expensive.

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Healthcare is being overshadowed by a whole bunch of things, demographics, government policies, etc. He is fairly constructive on healthcare. One of the few spaces that is not trading at an overvalued market multiple. One of the overhangs is the political cloud, but if you can get past that, it is a positive space to be in, and not expensive.

COMMENT
COMMENT
May 10, 2017

He is waiting for some data from the FDA on their inhaler, and perhaps it will come out overnight tonight. This is a diversified pharmaceutical. He likes their long-life assets. Only a couple of their drugs are less than 3% in revenues. This has a decent yield with the new CEO in March committed to that yield.

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He is waiting for some data from the FDA on their inhaler, and perhaps it will come out overnight tonight. This is a diversified pharmaceutical. He likes their long-life assets. Only a couple of their drugs are less than 3% in revenues. This has a decent yield with the new CEO in March committed to that yield.

TOP PICK
TOP PICK
March 21, 2017

He is looking for market-leading companies that are in sectors out of favour, and either have very strong dividends or some sort of catalyst that will unlock value. With markets just off all-time highs, he is looking for defensive plays, not one trick biotech ponies, but ones that have a whole array of meds. This is one of the leaders in therapeutic vaccines, various compounds and strong research development. Also, it has the European tarnish and lower valuation, but their business is outside of that area with about 50% in emerging markets and 25% in North America. A dividend well north of 4%. (Analysts’ price target is $48.)

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He is looking for market-leading companies that are in sectors out of favour, and either have very strong dividends or some sort of catalyst that will unlock value. With markets just off all-time highs, he is looking for defensive plays, not one trick biotech ponies, but ones that have a whole array of meds. This is one of the leaders in therapeutic vaccines, various compounds and strong research development. Also, it has the European tarnish and lower valuation, but their business is outside of that area with about 50% in emerging markets and 25% in North America. A dividend well north of 4%. (Analysts’ price target is $48.)

COMMENT
COMMENT
February 22, 2017

He likes this and their diversified business line. They’ve got vaccines, pharmaceuticals and their consumer health. Their pipeline tends to be a little bit earlier. Advair does end up as a generic this year, and have fully indicated that in their guidance. The upside could be if we don’t see that generic hit the market this year. There have been some delays in other generic hitting the market. That would be pure upside. Good yield.

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GlaxoSmithKline PLC (GSK-N)
February 22, 2017

He likes this and their diversified business line. They’ve got vaccines, pharmaceuticals and their consumer health. Their pipeline tends to be a little bit earlier. Advair does end up as a generic this year, and have fully indicated that in their guidance. The upside could be if we don’t see that generic hit the market this year. There have been some delays in other generic hitting the market. That would be pure upside. Good yield.

COMMENT
COMMENT
December 16, 2016

Not one he has owned. Novartis (NVS-N) would be his preferred pick, which has some really good momentum going. They have a new drug Entresto for heart attack victims. Healthcare has been beaten up, and could be the surprise sector for 2017.

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GlaxoSmithKline PLC (GSK-N)
December 16, 2016

Not one he has owned. Novartis (NVS-N) would be his preferred pick, which has some really good momentum going. They have a new drug Entresto for heart attack victims. Healthcare has been beaten up, and could be the surprise sector for 2017.

COMMENT
COMMENT
November 22, 2016

A really consistent company. Trump getting into the White House is actually a good thing for a lot of these drug companies. He likes the company. Dividend yield of 5.3%.

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GlaxoSmithKline PLC (GSK-N)
November 22, 2016

A really consistent company. Trump getting into the White House is actually a good thing for a lot of these drug companies. He likes the company. Dividend yield of 5.3%.

PARTIAL BUY
PARTIAL BUY
November 1, 2016

He likes this. It has held up well compared to how some of its US Pharma or biotech peers have done this year. The recent pullback raises the question of is it a buying opportunity or will there be more. All of the space has some question marks around it, with what is going on in the US election. The cautious way to play is to buy either a 3rd or a half position, and let the next few week’s ride. Yield of around 5%.

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He likes this. It has held up well compared to how some of its US Pharma or biotech peers have done this year. The recent pullback raises the question of is it a buying opportunity or will there be more. All of the space has some question marks around it, with what is going on in the US election. The cautious way to play is to buy either a 3rd or a half position, and let the next few week’s ride. Yield of around 5%.

BUY
BUY
October 31, 2016

When Brexit occurred it was one of the few that went up. It is a global franchise. They had their issues in the past. It is hard to replicate that blockbuster drug. They should be a beneficiary to the movement away from generic drugs.

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When Brexit occurred it was one of the few that went up. It is a global franchise. They had their issues in the past. It is hard to replicate that blockbuster drug. They should be a beneficiary to the movement away from generic drugs.

John Kim

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Price
$39.850
Owned
Unknown
COMMENT
COMMENT
September 9, 2016

The US$ is strong and most of their business is done on the US side. When they bring the money back over to England, they end up getting a favourable exchange. This has some pipeline issues, and has to come up with some new drugs. It will probably be a beneficiary of BREXIT soon to come, as well as the US$.

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GlaxoSmithKline PLC (GSK-N)
September 9, 2016

The US$ is strong and most of their business is done on the US side. When they bring the money back over to England, they end up getting a favourable exchange. This has some pipeline issues, and has to come up with some new drugs. It will probably be a beneficiary of BREXIT soon to come, as well as the US$.

DON'T BUY
DON'T BUY
August 8, 2016

Glaxo Smith (GSK-N) or BMW (BMW-GR)? Two entirely different companies. A global drug company and an automobile company. This is going to be more of a somewhat stable profit and dividend payer. The drug companies all have phenomenal cash flows. To him, there are better places to look for value.

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Glaxo Smith (GSK-N) or BMW (BMW-GR)? Two entirely different companies. A global drug company and an automobile company. This is going to be more of a somewhat stable profit and dividend payer. The drug companies all have phenomenal cash flows. To him, there are better places to look for value.

COMMENT
COMMENT
June 22, 2016

Has a deep pipeline of drugs. 25% of their business is in consumer. Trading at around 15X forward earnings. Not a lot of growth, but they have a really attractive yield of 5+ percent which he feels is safe.

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Has a deep pipeline of drugs. 25% of their business is in consumer. Trading at around 15X forward earnings. Not a lot of growth, but they have a really attractive yield of 5+ percent which he feels is safe.

COMMENT
COMMENT
May 11, 2016

North American investors have to be careful about buying European stocks. The British government is fine because they do not withhold taxes on dividends, and dividends are a big part of this company’s story, well over 5%. This has been a dog for the last 3-5 years. Brought in new management a couple of years ago, and finally they are having an effect. Got rid of their cancer division, and are now trying to rebuild that. He likes the stock because they are the 2nd largest manufacturers of vaccines, and every year they have to redo the vaccine, so it is a drug that is not typically copied. Also, it is a mass-market drug and they can make profits on low margins.

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North American investors have to be careful about buying European stocks. The British government is fine because they do not withhold taxes on dividends, and dividends are a big part of this company’s story, well over 5%. This has been a dog for the last 3-5 years. Brought in new management a couple of years ago, and finally they are having an effect. Got rid of their cancer division, and are now trying to rebuild that. He likes the stock because they are the 2nd largest manufacturers of vaccines, and every year they have to redo the vaccine, so it is a drug that is not typically copied. Also, it is a mass-market drug and they can make profits on low margins.

BUY
BUY
April 19, 2016

Has a 5.5% dividend, which is nothing to sneeze at. Pharmaceutical, relative to biotech, seems to be improving. Prefers Bristol Myers (BMY-N) because their growth rate is a bit higher, but wouldn’t be negative on owning this one. He would only have a small position.

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Has a 5.5% dividend, which is nothing to sneeze at. Pharmaceutical, relative to biotech, seems to be improving. Prefers Bristol Myers (BMY-N) because their growth rate is a bit higher, but wouldn’t be negative on owning this one. He would only have a small position.

COMMENT
COMMENT
December 16, 2015

Doesn’t know this that well. Wouldn’t be his preferred choice in healthcare. Thinks the dividend is pretty secure.

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GlaxoSmithKline PLC (GSK-N)
December 16, 2015

Doesn’t know this that well. Wouldn’t be his preferred choice in healthcare. Thinks the dividend is pretty secure.

DON'T BUY
DON'T BUY
October 28, 2015

Not a name he would want to own. They have more price sensitive areas of the market, so they don’t really have the ability to set prices as well as they would like. Also, has a very light R&D budget, which is something you don’t want from a pharma company. Right now they are in a joint venture with Pfizer (PFE-N) on an HIV company, and the earnings and cash flow from that are not expected for another couple of years. You might consider iShares US Healthcare ETF (IYH-N) instead.

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Not a name he would want to own. They have more price sensitive areas of the market, so they don’t really have the ability to set prices as well as they would like. Also, has a very light R&D budget, which is something you don’t want from a pharma company. Right now they are in a joint venture with Pfizer (PFE-N) on an HIV company, and the earnings and cash flow from that are not expected for another couple of years. You might consider iShares US Healthcare ETF (IYH-N) instead.

COMMENT
COMMENT
September 16, 2015

He favours the pharmaceutical giants Navartis and Roche. Both are exposed to oncology. Lots of really positive developments going on in oncology, which is great. Changes that are going on will benefit Navartis more than Glaxo.

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GlaxoSmithKline PLC (GSK-N)
September 16, 2015

He favours the pharmaceutical giants Navartis and Roche. Both are exposed to oncology. Lots of really positive developments going on in oncology, which is great. Changes that are going on will benefit Navartis more than Glaxo.

COMMENT
COMMENT
May 12, 2015

5.6% is a pretty good yield for pharmaceutical company. This is one of the more mature pharmaceutical companies. Probably not a takeover target, but more likely to be an acquirer. He doesn’t like the very, very big Pharma companies. They are very hard to analyse. Too subject to competition from generic companies.

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5.6% is a pretty good yield for pharmaceutical company. This is one of the more mature pharmaceutical companies. Probably not a takeover target, but more likely to be an acquirer. He doesn’t like the very, very big Pharma companies. They are very hard to analyse. Too subject to competition from generic companies.

DON'T BUY
DON'T BUY
January 12, 2015

The healthcare area in the US has pretty well been the best area to be invested in last year. He has cut back a little in this area. This one has not performed as well as other American drug companies. Prefers PFE-N.

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The healthcare area in the US has pretty well been the best area to be invested in last year. He has cut back a little in this area. This one has not performed as well as other American drug companies. Prefers PFE-N.

DON'T BUY
DON'T BUY
December 31, 2014

This usually does quite well this time of year, but it has not been doing so well lately. The trend is on the downside. Normally the stock does well coming into January, but it is not doing it this year. There are better pharmaceutical stocks which are doing much better this time of year.

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GlaxoSmithKline PLC (GSK-N)
December 31, 2014

This usually does quite well this time of year, but it has not been doing so well lately. The trend is on the downside. Normally the stock does well coming into January, but it is not doing it this year. There are better pharmaceutical stocks which are doing much better this time of year.

BUY
BUY
September 29, 2014

He likes the space. It is a growth industry and has been growing well. You are starting to see new drug development. Pharmas have their expenses under control. If you have a couple of pharmas then stick with them. This is a very good name. XPH-N is an ETF in this space you could use instead.

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GlaxoSmithKline PLC (GSK-N)
September 29, 2014

He likes the space. It is a growth industry and has been growing well. You are starting to see new drug development. Pharmas have their expenses under control. If you have a couple of pharmas then stick with them. This is a very good name. XPH-N is an ETF in this space you could use instead.

DON'T BUY
DON'T BUY
September 26, 2014

(Market Call Minute) They had issues in China with some bribery and corruption. Sales flat in 2014 and will be for 2 or 3 years.

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GlaxoSmithKline PLC (GSK-N)
September 26, 2014

(Market Call Minute) They had issues in China with some bribery and corruption. Sales flat in 2014 and will be for 2 or 3 years.

BUY
BUY
September 24, 2014

An interesting story. One of the benefits of this company is that there is not just one big drug. They are well diversified. They are expanding their franchise into the developed world. One issue is a drug that is 20% of their revenue. When it comes off patent it could hurt them, but inhalers are difficult to make as generics.

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GlaxoSmithKline PLC (GSK-N)
September 24, 2014

An interesting story. One of the benefits of this company is that there is not just one big drug. They a