CSL - CSL Limited

[UMike]

Got almost 1000 of these basterds. during last year and a bit.

Early on had a $320 target.
This Christmas would of been happy to offload 350 at around $310ish.

Still got ave buy in at $261.77. Only issue is that with a dividend yield of 1.1% there needs to be that capital gain to make it worth while.

 

[rcw1]

Got almost 1000 of these basterds. during last year and a bit.

Early on had a $320 target.
This Christmas would of been happy to offload 350 at around $310ish.

Still got ave buy in at $261.77. Only issue is that with a dividend yield of 1.1% there needs to be that capital gain to make it worth while.

Good afternoon UMike,
Nice portfolio of CSL shares. Good fortune.

CSL looking for leadership change. Perreault reign has come to an end. Retired apparently.

They blooded Dr Paul McKenzie as Chief Operating Officer in 2019 and have given him the CEO and Managing Director gig, which kicks in early March. Interesting to see where the lad takes the company. Pleasantly optimistic

Have a very nice weekend.

Kind regards
rcw1

 

[Dona Ferentes]

CSL is approaching $300. I wonder what's holding it back? Will need to look closer

 

[UMike]

Please do as it is confusing the hell outta me.
That $300 is the cursed number and I am to stubborn to reduce for less.

 

[Knobby22]

Well above $300 which will now become support line...ah human psychology.

I am a bit relieved as this is my largest holding.

 

[Dona Ferentes]

300, ..And holding !!

 

[UMike]

No longer my largest holding
For the Chartists now

 

[dyna]

For the Chartists now

Mmmm, as Butch Cassidy was wont to say " but who are these guys? "

I want to say : WHERE are these guys ?
.....and why can't they be ringing a bell for me ?
( been starring at that damned chart till I'm blue in the face )

 

[Dona Ferentes]

gotta remember they report in USD and results are expressed in Constant Currency (CC) terms

CSL delivered a net profit after tax of $1.62 billion for the first half of financial year 2023, steady at CC. This included one-off costs associated with the acquisition of Vifor Pharma.

Underlying profit (NPATA attributable to CSL shareholders) was $1.82 billion, up 10% at CC. Revenue was up 25% at CC
• Strong growth in immunoglobulin and albumin sales
• Record levels of plasma collections
• Strong growth in market leading haemophilia B product IDELVION® and key specialty product KCENTRA®
• Strong performance by influenza vaccines business, CSL Seqirus
• Licence agreement for late-stage self-amplifying mRNA vaccine technology
• Successful closure of Vifor acquisition
o ~15% revenue growth
o Integration well underway and cost synergies on track
• HEMGENIX® approved by FDA, the first gene therapy for haemophilia B
• NPATA earnings per share $3.772
• Interim dividend of US$1.07 per share
o Converted to Australian currency, the interim dividend is approximately A$1.55 per share, up 9%
• Guidance reaffirmed – FY23 NPATA anticipated to be in the range of approximately $2.7 billion to $2.8 billion at CC

 

[Knobby22]

gotta remember they report in USD and results are expressed in Constant Currency (CC) terms

CSL delivered a net profit after tax of $1.62 billion for the first half of financial year 2023, steady at CC. This included one-off costs associated with the acquisition of Vifor Pharma.

Underlying profit (NPATA attributable to CSL shareholders) was $1.82 billion, up 10% at CC. Revenue was up 25% at CC
• Strong growth in immunoglobulin and albumin sales
• Record levels of plasma collections
• Strong growth in market leading haemophilia B product IDELVION® and key specialty product KCENTRA®
• Strong performance by influenza vaccines business, CSL Seqirus
• Licence agreement for late-stage self-amplifying mRNA vaccine technology
• Successful closure of Vifor acquisition
o ~15% revenue growth
o Integration well underway and cost synergies on track
• HEMGENIX® approved by FDA, the first gene therapy for haemophilia B
• NPATA earnings per share $3.772
• Interim dividend of US$1.07 per share
o Converted to Australian currency, the interim dividend is approximately A$1.55 per share, up 9%
• Guidance reaffirmed – FY23 NPATA anticipated to be in the range of approximately $2.7 billion to $2.8 billion at CC

Going to be a bumper second half without the one off costs from Vifor.

 

[UMike]

.......
• Interim dividend of US$1.07 per share
o Converted to Australian currency, the interim dividend is approximately A$1.55 per share, up 9%
• Guidance reaffirmed – FY23 NPATA anticipated to be in the range of approximately $2.7 billion to $2.8 billion at CC

Problem is that with the rising inflation a 1%-2% dividend doesn't seem so attractive any more.

 

[Dona Ferentes]

Problem is that with the rising inflation a 1%-2% dividend doesn't seem so attractive any more.

Possibly, but ...

A) It's a growth stock. (driven by successful integration of large acquisitions)
B) the reinvestment into R&D is for the future
C) long term hold.

 

[UMike]

Possibly, but ...

A) It's a growth stock.
B) the reinvestment into R&D is for the future
C) long term hold.

True
Not arguing but has been stagnant for the past 3 years and it is why I limited my exposure.

Still holding a lot and prepared to get more if it dips.

 

[Garpal Gumnut]

True
Not arguing but has been stagnant for the past 3 years and it is why I limited my exposure.

Still holding a lot and prepared to get more if it dips.

I'd agree with @Dona Ferentes . If it grows 10, 20, 30 %. pa I don't care what the divi is.

I believe once the cousins in Russia, China , oh basically all the cousins all over the world settle down, CSL will no longer stagnate and be worth $100 more.

gg

 

[Dona Ferentes]

And let's hear from the shiny suits:

 

[Dona Ferentes]

JPMorgan sold a line of a million CSL shares at $290 each for $302.6 million total. The trade went through on market at 3.16pm.

Of course, CSL went ex-dividend today, so seller (an Asian fund manager) picked up the distribution.

 

[UMike]

Well thats when it started to fall away from $295 to $290.5

That 0.55% Interim dividend doesn't thrill me too much.
Lets hope it all picks up soon

 

[Knobby22]

And let's hear from the shiny suits:

View attachment 152965

Though I expect a good next six months I cannot see massive growth (20%+).
I think the long term PE ratio should be more in the 27-33 range which, if the company SP stays around this level, should be met in the second half.

 

[Dona Ferentes]

Well thats when it started to fall away from $295 to $290.5

Yes it did. For a $140 billion company, the $300 million trade is sizeable, but not that big a deal. Already $90mill has gone through this next morning. But as its an Asian seller, maybe the money has left the ASX?

That 0.55% Interim dividend doesn't thrill me too much..

Annualised, it's double that.

Mind you, as I paid $30 a share nearly twenty years ago, and there was a 3:1 split, I see my return on invested (and patient) capital as 30+%.

 

[Dona Ferentes]

CSL is approaching $300.

....and made it, closing near to the day's high of 300.26. Fourth time we've been here!

(And as a major personal holding, pushed me +ve on a negative day)