Karl BergerGlaxoSmithKline PLCGSKDON'T BUYMay 20, 2009

Vaccine discoveries good for business.
Does not own shares at this time.
Market for pharmaceuticals separating between strong and weak players.
Current share price fairly valued.

Big pharmas are all under pressure, growth is hard to come by and so they're cost-cutting. All have lots of free cashflow and reasonable dividend yields. He prefers JNJ. 

Good business, but better opportunities out there.
Attractive dividend yield.
Not investing in business at this time.
Hard to evaluate R&D pipeline.
Would look elsewhere. 

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.

It's been successfully recently, but they have to pay for their drug pipeline which looks reasonable. Not cheap, but no drug is coming to market that will do very well. So-so overall. There are better peers.

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.