Csl

[mark100]

Couldn't find a CSL thread.

Took a position in CSL on open this morning. I have been considering an investment/trade in CSL for sometime. A recent report from UBS suggests that CSL will receive government funds to develop a vaccine for the swine flu (which apparently only takes around 4-6 weeks?) and then will have to ramp up production of the vaccine.

Also CSL has already raised the funds to pay for its Telecris acqusition which I expect will get approved eventually.

The TA experts may also think the close above $33 was a short term positive.

If the market tanks on economic and flu concerns CSL may show its defensive properties again.

[Huang Chung]

Been holding CSL for over a month now...going nowhere fast, that's for sure.

I don't think flu vaccines are a big contributor to CSLs bottom line. One of their bio specialists was interviewed on ABC radio yesterday. She said that they would wait for the Government to give the nod to develop the new vaccine, and would probably mean production of the regular vaccine would be suspended to make room for the new one.

Can't see this Swine Flu being too pivotal to CSL's fortunes I'm afraid.

[mark100]

Been holding CSL for over a month now...going nowhere fast, that's for sure.

I don't think flu vaccines are a big contributor to CSLs bottom line. One of their bio specialists was interviewed on ABC radio yesterday. She said that they would wait for the Government to give the nod to develop the new vaccine, and would probably mean production of the regular vaccine would be suspended to make room for the new one.

Can't see this Swine Flu being too pivotal to CSL's fortunes I'm afraid.

I know the flu vaccine isn't a big profit maker HC, but more thinking about a positive sentiment on the stock. CSL appears to have been struggling recently inline with the performance of the US Healthcare sector. US Healthcare sector has picked up a bit following swine flu and that may be the trigger required to get CSL moving again.

The big positive will obviously be approval of the Telecris acqusition, if it happens.

[ratkin]

Great result out today. Price is taking off and looks to be coming out of a year long slump.
Quality stock at a good price

[ratkin]

Hows this for a bullish article

CSL breaks ranks with the bears
ELI GREENBLAT
February 17, 2010 - 11:49AM

Be the first to comment

If CSL is feeling the strain of uncertain economic times and tightening credit markets, it's not showing it.

While Australian chief executives and directors are peppering their earnings guidance comments with terms such as ''cautiously optimistic'', or in many cases not providing any guidance at all, CSL has thumped on the table another solid profit result as well as an upbeat assessment of the year ahead.

The future looks bright according to veteran CSL boss Brian McNamee and he now expects the company's full-year profit to land somewhere between $1.116 billion and $1.26 billion (based on 2008-09 exchange rates) - and at the upper end of that band.

Also setting it apart from many of its colleagues on the ASX, CSL has upped its dividend by 17 per cent.

The nation's largest healthcare company by market capitalisation this morning unveiled an after-tax profit of $617 million for the six months to December 31, up 23 per cent against the previous first-half performance.

This included a $46 million hit from unfavourable movements in exchange rates. Stripping this out from the interim profit, CSL's earnings were up 32 per cent for the period.

Currency will always be a factor for CSL; its global network of blood plasma facilities is both a blessing and a curse when the company goes about its daily transactions and repatriates its earnings on behalf of shareholders.

Investor sizzle

Its global reach gives it immediate access to the most important markets, researchers and scientists in the world, but its growing offshore earnings base has at the same time eroded CSL's ability to pay fully franked dividends.

However, the real sizzle for investors in the years ahead won't flow from CSL's dividends and generous share buy backs. Rather, it will come from CSL's ability to constantly and consistently roll out a new portfolio of blood plasma products which are attractive to hospitals and patients and that attract premium margins.

CSL is now a company in transition. Its royalties from the breakthrough HPV cervical cancer vaccine are in steady decline and there is spiralling demand for its swine flu vaccine. Basic blood plasma is almost a commodity and attracting commodity prices.

The transition CSL is making is to a new generation of plasma technologies that will recoup the dwindling earnings of its older products.

CSL Behring, its core blood division, increased sales by a respectable 10 per cent in constant currency terms to $1.8 billion for the half, and secured margins of 500 basis points. This indicates the massive potential of one such new product called Privigen, a higher-margin liquid immunoglobulin product, that is currently being rolled out by CSL.

Sitting behind Privigen are other blood plasma technologies that are currently being tested in the lab or awaiting various regulatory and marketing approvals.

CSL's product pipeline won't fail for want of funding. The company's R&D expense was $147 million for the half and was up materially on the previous corresponding period.

[ratkin]

Heres a good example of what happens when you hold a top quality stock through thick and thin
Eventually the quality shines through.

CSL smashed its way over 50 dollars today , and will make profits of about 1,2 billion US

[OldRider]

CSL has been a solid performer for me over the years, the data shows as Ratkin says,
that quality large companies can still show great returns, and without any hassle.

I have held since initial purchase in 2001,with a few additions over the years.
From my records which are kept in NZ dollars, over this period annual IRR has been 22.2%
dividend has been paid every year with average annual dividend growth close to 15%
Lowest purchase price paid was in 2004 at $NZ 18.00 which was split in a 3 for 1 capital reconstruction in 2007,
current $NZ price over $60.00 makes this purchase over a 10 bagger.
So far so good, and hopefully more in store.

A further interesting point is that although dividend return is low on current price, dividend return
on cost for me is now over 9%.

[ratkin]

CSL has been a solid performer for me over the years, the data shows as Ratkin says,
that quality large companies can still show great returns, and without any hassle.



Yes , no need to flirt with the rubbish end of the market when there are companies like this about.

CSL ,Ramsey health care, and Cochlear have been the core of my aussie portfolio for some years now , and apart from a blip from Cochlear ,its been all plain sailing. They barely flinched during the GFC
Went with the aging population/healthcare theme in the early 2000s and it now literally paying dividends , throw in Ryman and the latest addition Sumerset and it hard to see much going wrong

[sharer]

Heres a good example of what happens when you hold a top quality stock through thick and thin
Eventually the quality shines through.
CSL smashed its way over 50 dollars today , and will make profits of about 1,2 billion US

Enthusiastically agreeing with you ratkin, and also with OldRider above.
Every year i try to save up a little so i can buy a few more for the long term trusts i support.

[ratkin]

Out today after many years, been a good ride. 82.30 may be 8% down on yesterday but it 100s percent more than i paid for it. Interesting there was no sell off before the result, must keep a tight ship

[RRR]

Share price keeps on going higher - $117! 2 new haemophilia products and vaccine business hopefully will add to the bottom line.
Disc- invested from $78

[RRR]

Now $195 (all time high $230 not long ago). New drug CSL112 undergoing phase 3 trial - if successful will be very lucrative for CSL since this a completely novel treatment regime in the setting of heart attack.
Disc- hold a decent parcel

[RRR]

Details of the CSL112 phase 3 trial

https://clinicaltrials.gov/ct2/show/NCT03473223

[RRR]

CSL share price $279 !!!

[peat]

CSL share price $279 !!!you've done a hat-trick+1 on this thread but with the gains made recently I bet you don't care. It has been going gangbusters all year !
It is one of the Aussie shares in my watch list but don't have any.
It might be starting to look a bit parabolic though and the metrics are crazy PE of nearly 50! I haven't looked at the history though so if its growing fast I guess that's less crazy. but still crazy.

[Beagle]

One of Barramundi's largest holdings and Barramundi is my single largest shareholding. Looks like a very interesting company and I know their analyst is very keen on it.
Happy to be along for the ride with this one.

[ratkin]

CSL share price $279 !!!


Yeah incredible. Cochlear keeping pace too at $230

[bohemian]

$280.84 high today.

[percy]

One of Barramundi's largest holdings and Barramundi is my single largest shareholding. Looks like a very interesting company and I know their analyst is very keen on it.
Happy to be along for the ride with this one.

Brings back fond memories.
The share club I was part of brought CSL in about 1994 at about $8 or $9.
As the club proved to be too successful we disbanded, it in about 1999 and sold our CSL at approx $20.
Also held Ebos and Blackmores.

[macduffy]

$280.84 high today.

The best answer to those who advocate splitting shares! (Yes, I know, " but what price if the shares were split! ")

[lissica]

The best answer to those who advocate splitting shares! (Yes, I know, " but what price if the shares were split! ")

There was a 3 for 1 split in 2007.

I bought in shortly after that, but also stupidly sold before it increased 7 fold.

[RRR]

you've done a hat-trick+1 on this thread but with the gains made recently I bet you don't care. It has been going gangbusters all year !
It is one of the Aussie shares in my watch list but don't have any.
It might be starting to look a bit parabolic though and the metrics are crazy PE of nearly 50! I haven't looked at the history though so if its growing fast I guess that's less crazy. but still crazy.

Yes, I have done well averaging up - $78, $98, $118 and $176. I was tempted to top up again at $192 but missed since market price was higher than my bid..

CSL is a completely different to your typical pharma company. Their core product is IVIG (extracted from donated human blood) and the price of IVIG is rising every year and the number of disorders treated with IVIG is also increasing. Their other specialty product sales also don't fluctuate significantly and have a good runway (except for vaccine business which is cyclical). Their haemophilia A product is facing stiff competition though.

PE is very high - but do remember the fact that their entire yearly/recurring R&D expenses are not amortized and expended every year (most pharma companies R&D expenses appear in the asset column). Profits would be higher had they shown their R&D expenses as assets (at least part of R&D)

[RRR]

https://online.asb.co.nz/ost/A085126EE0580A7795D41B5B6989488B/external/pdf/csl/asx/534741

CSL keeps on delivering

[RRR]

https://www.csl.com/news/2020/our-offer-to-help-battle-coronavirus

[peat]

https://www.csl.com/news/2020/our-offer-to-help-battle-coronavirus

that sounds a really fantastic offer on the face of it. of course I have no idea about how much vested interest is there but I think it will be technology and ingenuity that will give the solution to covid 19 so that people can get on with their lives again and not be afraid of human contact.

Also, CSL is a company that might just be the start of my Aussie portfolio, but I am scared to look at the PE.

[ratkin]

that sounds a really fantastic offer on the face of it. of course I have no idea about how much vested interest is there but I think it will be technology and ingenuity that will give the solution to covid 19 so that people can get on with their lives again and not be afraid of human contact.

Also, CSL is a company that might just be the start of my Aussie portfolio, but I am scared to look at the PE.

As a previous owner am keen to get back in, but will let the chart decide when. We have not really heard yet how the virus is damaging its main business. With such a high P/E it is priced for perfection, so could be a big drop if anything nasty is posted.
Great they are helping with the virus and although it may not directly help their bottom line, any plasma based solution would.

[RRR]

https://wcsecure.weblink.com.au/pdf/CSL/02268403.pdf

Conference call voice - if you want to hear, register first and you have access to the audio
https://csl.webcastcloud.com/Play?pId=b6733b46-8508-42e5-aeb6-ad9fe51273cc&catId=70d0ecd5-67c4-431b-afc7-6f354e7d6649

CSL keeps on delivering. I added more at $282. I have submitted another buy order $290

2.1 billion PAT. Market cap 134 Billion. Headline PE ratio of 51. But, they spent close to 1 billion on R&D last year and they expended the entire amount (instead of amortising it over the years)in the same year. R&D provides future growth..Growth forecast for 2021 between high single digits and low-mid teens

There are so many promising new therapies in the pipeline. The only concern is their plasma collection is down due to Covid, but they are taking some measures to mitigate the impact..

[tango]

https://wcsecure.weblink.com.au/pdf/CSL/02268403.pdf

Conference call voice - if you want to hear, register first and you have access to the audio
https://csl.webcastcloud.com/Play?pId=b6733b46-8508-42e5-aeb6-ad9fe51273cc&catId=70d0ecd5-67c4-431b-afc7-6f354e7d6649

CSL keeps on delivering. I added more at $282. I have submitted another buy order $290

2.1 billion PAT. Market cap 134 Billion. Headline PE ratio of 51. But, they spent close to 1 billion on R&D last year and they expended the entire amount (instead of amortising it over the years)in the same year. R&D provides future growth..Growth forecast for 2021 between high single digits and low-mid teens

There are so many promising new therapies in the pipeline. The only concern is their plasma collection is down due to Covid, but they are taking some measures to mitigate the impact..

Thanks for the link!
This is a great company. Happy holder :)

[NZSilver]

Down $60 from highs, could be worth accumulating a few. Im not 100% on the reason but several things may be reducing price: high AUD to USD, serum collection sites in the US facing difficulty with covid outbreak and reducing collection quantities, recent uni queensland vaccine being shelved due to issue interfering with HIV test (fasle +ve test after vaccine). I've heard several commentators over the last year say csl would downgrade but they haven't. I believe there is good value at these levels. PE is high but it always has been. Bought a few, and will buy a few more. There are a few clincal trials to come through from R&D which could push this higher again. Would be interested if anyone else can add info re downward pressure.

[FatTed]

Any thoughts on the SPP is $273 a reasonable amount? keen to hear what people think

[RRR]

Any thoughts on the SPP is $273 a reasonable amount? keen to hear what people think

I will be participating in SPP - I am a long term holder

[hamish]

I will be participating in SPP - I am a long term holder

Same here. $273 seems very good dip / opportunity to add to a quality long termer

[Joshuatree]

Same here. $273 seems very good dip / opportunity to add to a quality long termer

I've started averaging in guys for a short term play.

[mwri]

Good news on FDA approval of hemophilia B drug https://csl.com/news/2022/fda-hemgenix