WE CAME OUT ON A DETAILED ANALYSIS AND BUY CALL ON GLAXO PHARMA TO PUR PAID CLIENTS ON NOV AND UPDATED IN BLOG ABOUT A PHARAM STOCK ON NOV 18 TH TO BUY GLAXO PHARMA @ 2397 EXPECTING A SHARP RALLY TODAY ON THE BACK OF NEWS STOCK WAS ON FIRE CLOCKED UPPER CIRCUT HIT 2900 MOVE 600 RS ON NO TIME
THIS WAS OUR MAIL TO OUR CLIENTS ON NOV 18
Glaxo Pharma stock has done nothing in last 2-3 years but it seems that’s about to change. Here’s why
Glaxo Pharma stock created a stiff resistance around 2400 for years. It’s only in May 2013- the stock broke past 2400 and since then has been on consolidation drive. The stock seems to be establishing base around 50 week ma (2293) and 2400 which is very bullish and once stock takes off from here – we are looking at multi year bull market in the stock.
What is a MULTI YEAR BULL MARKET
When stocks breakout from a well established multi year resistance: they run a marathon post breakout for years. Here’s one example: Apollo Hospitals
Apollo
Hospitals broke out above 300 in Dec 2009 and then over next 3.5 years:
stock tripled despite overall bad market environment. That’s what
happens when stock breaks out after many years. They can run on their
own.
Glaxo Pharma: Investment worthy
I am not saying Glaxo Pharma will succeed in same way as Apollo Hospitals. It may or it may not but the promise is there for multi year bull market. Remember, we are in a market and there is no certainty of anything. Glaxo Pharma is investment worthy stock and not suitable for trading and short term gains. Having said that – one should look to exit if stock slips below 2190 on closing basis.
THIS WAS THE NEWS WHICH HELPED TO STOCK MOVE IN A BIG WAY
London-listed GlaxoSmithKline plc announced a voluntary open offer to increase its stake in its publicly-listed pharmaceuticals subsidiary in India, GlaxoSmithKline Pharmaceuticals Limited , from 50.7 percent to up to 75 percent at a price of Rs 3,100 per share.
GSK added that it intends to keep the company listed, which means it will not hike its stake any further after the open offer. Securities regulations in India require a minimum public shareholding of 25 percent for a company to maintain a public listing.
The open offer, in which the parent firm intends to buy 2,06,09,774 shares, or 24.3%, of the company, represents a premium of about 26 percent of the stock's closing price on December 13. “For GSK, this transaction will increase exposure to a strategically important market and for our Indian pharmaceuticals subsidiary’s shareholders we believe it offers a good liquidity opportunity at an attractive premium," David Redfern, Chief Strategy Officer, GSK, said in a statement. “GSK has a proud heritage in India. Today’s announcement is a further demonstration of our long-term commitment to the country having increased our holding in our consumer business earlier this year and more recently committed to a significant manufacturing investment.” HSBC Securities is the manager for this open offer.
The transaction will be funded through GSK’s existing cash resources, will be earnings neutral for the first year and accretive thereafter and will not impact expectations for the group’s long-term share buyback programme, the parent company said.
THIS WAS OUR MAIL TO OUR CLIENTS ON NOV 18
Glaxo Pharma stock has done nothing in last 2-3 years but it seems that’s about to change. Here’s why
Glaxo Pharma stock created a stiff resistance around 2400 for years. It’s only in May 2013- the stock broke past 2400 and since then has been on consolidation drive. The stock seems to be establishing base around 50 week ma (2293) and 2400 which is very bullish and once stock takes off from here – we are looking at multi year bull market in the stock.
What is a MULTI YEAR BULL MARKET
When stocks breakout from a well established multi year resistance: they run a marathon post breakout for years. Here’s one example: Apollo Hospitals
Apollo
Hospitals broke out above 300 in Dec 2009 and then over next 3.5 years:
stock tripled despite overall bad market environment. That’s what
happens when stock breaks out after many years. They can run on their
own.Glaxo Pharma: Investment worthy
I am not saying Glaxo Pharma will succeed in same way as Apollo Hospitals. It may or it may not but the promise is there for multi year bull market. Remember, we are in a market and there is no certainty of anything. Glaxo Pharma is investment worthy stock and not suitable for trading and short term gains. Having said that – one should look to exit if stock slips below 2190 on closing basis.
THIS WAS THE NEWS WHICH HELPED TO STOCK MOVE IN A BIG WAY
London-listed GlaxoSmithKline plc announced a voluntary open offer to increase its stake in its publicly-listed pharmaceuticals subsidiary in India, GlaxoSmithKline Pharmaceuticals Limited , from 50.7 percent to up to 75 percent at a price of Rs 3,100 per share.
GSK added that it intends to keep the company listed, which means it will not hike its stake any further after the open offer. Securities regulations in India require a minimum public shareholding of 25 percent for a company to maintain a public listing.
The open offer, in which the parent firm intends to buy 2,06,09,774 shares, or 24.3%, of the company, represents a premium of about 26 percent of the stock's closing price on December 13. “For GSK, this transaction will increase exposure to a strategically important market and for our Indian pharmaceuticals subsidiary’s shareholders we believe it offers a good liquidity opportunity at an attractive premium," David Redfern, Chief Strategy Officer, GSK, said in a statement. “GSK has a proud heritage in India. Today’s announcement is a further demonstration of our long-term commitment to the country having increased our holding in our consumer business earlier this year and more recently committed to a significant manufacturing investment.” HSBC Securities is the manager for this open offer.
The transaction will be funded through GSK’s existing cash resources, will be earnings neutral for the first year and accretive thereafter and will not impact expectations for the group’s long-term share buyback programme, the parent company said.
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