Share Analysis Essay Example | Topics and Well Written Essays - 2000 words

Share Analysis - Essay Example In 2013, the company issued about 4850 million of shares in the public and earned market capitalization of  £69,178.56 million. The company occupies about 5% of markets share in this particular market globally with respect to sales revenue. GSK is listed in FTSE 100, FTSE 350 and FTSE All-Share (GlaxoSmithKline plc.,, â€Å"Explore GSK†). The share price performance of GSK has encountered huge fluctuation over the years due to the slide in profit. By considering the performance of FTSE 100, GSK has performed quite well over the period of 10 years. However, there are many controversies and events, which had forced the sales revenue of the company to decline. As per July 23, 2014, the share price of GSK had dropped 4.7% and this drop is the steepest as compared to October 2008. Despite the decrease in share price, the company has anticipated growth of 4% to 8% (MarketWatch, â€Å"Glaxosmithkline Lowers Full-Year Profit Outlook†). This decrease in share price did not de-motivate the investors and they kept on investing in the shares of the company as it shared a good reputation in the market. GSK is the best company for share price analysis as the fluctuations is very interesting to examine and the reason behind the same are practical in the present competitive world (MarketWatch, â€Å"Glaxo Slides in London Af ter Earnings Warning†). The share price of GSK is observed to drop by 3% in the second quarter of 2014. This is because of the decrease in profit from the first quarter of 2014. However, the company has also reported that the operating profit for the second quarter of 2014 has slumped by 25% and the turnover decreased by 13%. The decrease in this company financials have affected the Earning per share (EPS), which have dropped by 25% from the previous year’s performance (Guardian News and Media Limited, â€Å"FTSE Ends Week On A Low Note, While Glaxosmithkline Suggested As Pfizer Target†). The company stated that there have been drastic changes in