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.
