The ULVR share price is under 4,000p. Here’s what I’d do
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The
Unilever(LSE:ULVR) share price hasn’t done well this year. The stock is down from around 4,800p in November of last year to around 3,900p currently. Although there are many reasons for the decline, here are some key reasons why I think the ULVR share price fell and what I’d do as a result.
Why I think the ULVR share price weakened recently
I reckon the ULVR share price has fallen for two reasons. First, I think stock rotation could have something to do with Unilever’s decline. Given its defensive position, many larger institutional investors may have gone into Unilever as a ‘safe haven’ during the first part of the pandemic, when things were very uncertain. Given that it’s a leading consumer staple whose main products don’t cost very much, many investors likely reasoned that the pandemic wouldn’t greatly affect Unilever’s demand.
GSK’s share price has fallen. I’d buy the stock today
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GlaxoSmithKline(LSE: GSK) shares have underperformed over the last year. This time last year, GSK’s share price was hovering just below 1,800p. Today however, it’s near 1,400p – more than 20% lower.
At the current share price, I see the shares as a ‘buy’. Here’s a look at why I like the
FTSE 100 stock right now.
US$12.3 TRILLION out of thin air…
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What I think AstraZeneca’s purchase of Alexion means for the dividend
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AstraZeneca(LSE:AZN) recently agreed to buy Alexion Pharmaceuticals for around $39bn. Although management has spoken positively about the deal, AstraZeneca shares initially fell 5.7% to a nine-month low on the news.
Given the initial market reaction, here’s what I think the deal means for AstraZeneca’s dividend if it goes through:
US$12.3 TRILLION out of thin air…
And if you click here we’ll show you something that could be key to unlocking 5G’s full potential.
The reaction to the Alexion deal
According to the terms of the proposed transaction, AstraZeneca will pay $39bn in cash and stock to acquire Alexion in a deal that’s anticipated to close in the third quarter of next year. To pay for the cash component of the deal, CMC Markets U.K. analyst David Madden expects AstraZeneca will take a bridge loan financing of around £13bn.