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Opinions Mohsin Bashir
GlaxoSmithKline PLCGSKHOLDJul 18, 2014
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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They sold their personal care business to generate a lot of capital. They're strong in vaccines, but don't have a strong pipeline of drugs. So, they need to buy other companies to make up for that. Not a high PE and pays a good dividend. The key is what they will do with their capital.
Great dividend yield of 6.3%, trades at only 10x earnings. Cheap, you can own it here. Grew vaccine business. New CEO shed some divisions, so now more of a pure pharma company, which has risks. Have to worry about pipeline constantly. JNJ, for example, is more diversified, and that's what he prefers.
Still likes it. They spun off over-the counter and consumer pharmaceuticals like Advil and that's when shares dipped (last fall). He chose it back then to bet on Covid vaccines, but that didn't pan out. But he likes it for that spin off and you get paid a reasonable dividend.
Gavin Graham
Jamie Murray 
Pete Najarian
Although listed in the US, this is really a European name, but diversified across about 140 different countries. Even though they may not be as diversified as its peers, they have a pretty decent focus and mixture. Focused mainly on vaccines and drug R&D, but also have some pretty well-known consumer product brands that people are familiar with. The issue is that it is a little bit more focused on the hefty dividend payment. Payout ratio is about 70% while its peers are more like 50%-60%. Because of this the multiple is lower, and trades at a discount to the others.