I understand you thinking with yield on invested capital, but more realistic is to consider what the yield is on the capital you would end up with after tax if you sold. That way you can compare the opportunity cost of continuing to hold.
It may well be that its better to hold even with a comparatively low yield because of the tax cost of selling and the problem of finding another company to invest in.
I am always very reluctant to sell out of a great business, its often fool's gold to sell down or out of your big winners, but I do think its an error to think of yield on invested money, its a similar cognitive error to the idea of "free carry".
I'm in the same boat. Can't sell many till I retire. Capital gains tax would crush me.my dividend yield is close to 60 percent pa on invested money
.
if you pay my capital gains tax, I'll happily sell
oh, and suggest something else too
I'm in the same boat. Can't sell many till I retire. Capital gains tax would crush me.
Good evening Knobby22I'm in the same boat. Can't sell many till I retire. Capital gains tax would crush me.
CSL expects its lifesaving medicines and plasma to escape Donald Trump’s tariff net
CSL says it has invested heavily in building out its US manufacturing footprint in recent years. Picture: CSL
Australian pharmaceutical major CSL is eyeing boosting manufacturing of its lifesaving plasma and vaccine products from its existing operations in the US as it looks to navigate the threat of US President Donald Trump turning his attention to the healthcare sector.
Chief executive Paul McKenzie believes there is enough “redundancy and resiliency” in CSL’s global supply chain to shift production and should bypass the prospect of tariffs across about 85 per cent of his US businesses.
The homegrown pharma makes blood plasma products, high-end vaccines and more recently has moved into dialysis and treatment of kidney diseases.
However, McKenzie conceded the final 10 per cent of his US sales are across advanced kidney treatment products that are mostly imported from CSL’s European businesses, and this will need to be worked through.
“For almost 85 per cent of the (US) business, the majority of what we do is generate its value in the US,” McKenzie told The Australian.
“Our footprint in the US is quite significant. We’ve invested multiple billions of dollars over the last couple of years. We can respond very well to these policy initiatives.
“We’ll see what happens with Section 232 (tariffs). We’ll participate in the process, but we feel for these reasons and the medical necessity of our products for people in public health, we should be in good stance.”
CSL is one of the world’s biggest influenza vaccine manufacturers with hi-tech plants in Victoria, North Carolina and the UK.
Its blood processing plants are also in Australia, the US and Europe.
The US is by far CSL’s biggest market and generates about 50 per cent of its sales there, mostly from its Behring blood products and collections business.
CSL is one of the world’s biggest suppliers of blood and derived products to governments, including US health authorities.
The comments by McKenzie, who has just returned to Melbourne after several weeks in the US, underscore the grey area in which many global pharmas now find themselves.
Trump initially spared the pharma industry and medicines from his “Liberation Day” tariff announcement, but last week he threatened that he planned to announce a “major” tariff on pharmaceutical imports shortly.
The sector has been bracing for Mr Trump to use the sector-specific Section 232 tariffs that he has slapped on steel imports and cars.
However, with the market turmoil prompting a 90-day pause on reciprocal tariffs, the pharmaceutical companies remain in the dark about when or how they could be targeted. CSL’s shares had been off nearly 10 per cent on the initial tariff uncertainty, although with the weekend exemption on high-end tech manufactured in China, the market is hopeful there is more wiggle room than thought.
CSL shares jumped 2.1 per cent on Monday.
The risk for Trump in slapping tariffs on pharma is creating supply shortages in lifesaving drugs and treatment. The supply chains are complex and often involve importing critical compounds that are finished in the US.
Some blood-related products are finished at the new CSL factory in Melbourne’s north. Picture: Tim Carrafa
Even CSL has complex plasma-related products derived from blood collections in the US and are partially processed in Australia, before being returned to the US.
With a market value of more than $115bn, CSL is Australia’s biggest pharma, and it spends more than $1bn annually on research and development.
McKenzie said most of the processing is generated in the US, but where some plasma-derived proteins are collected in the US but processed outside the country, he expected that their critical role in saving lives should see them fall outside the tariff net.
The former CSL chief operating officer who took charge two years ago, McKenzie said one of the big lessons from the Covid-19 pandemic was to build “redundancy and resiliency in our supply chain”, which gives the company additional capacity to shift production around the world.
This is why all manufacturers are looking at their supply chains to ensure they can continue operations without disruption.
McKenzie also revealed that CSL is seeking to fast track approvals from Chinese authorities to supply albumin there from its new $900m plasma fractionation plant at Broadmeadows, in Melbourne’s north.
Currently CSL’s albumin sales from China are sourced from multiple plants in Europe or the US.
CSL’s new $900m factory in Broadmeadows is looking to export albumin products to China. Picture: Tim Carrafa
Albumin is used in emergencies to treat blood loss and restore rapidly falling blood pressure.
“We are planning to look to prevent disruptions in the normal supply chain. We have a brand new facility in Broadmeadows. This month we are about ready to file for approval in China. So this is a good example, I’m hoping, that we can work with the regulatory agencies in China and Australia that would certainly shore up the critical supply of albumin, but our ability to supply from multiple nodes,” McKenzie said.
“This is something that we do as a course of business.”
Even if the tariff wall goes up, McKenzie says this is unlikely to impact CSL’s $1.6bn-plus R&D budget. The company has had a long-term target of about 10 per cent of revenue invested in R&D, and much of this is spent in Australia. Although research also takes place in the US and Europe.
“For us, the world is our lab, and I think it’s really important to make sure you continue to access great innovation everywhere.
“We have a proud history of accessing innovation here in Australia, equally accessing it in Europe and the US, and we’ll continue to do that.
“However where CSL could start thinking differently over the longer term is how it is using its multiple manufacturing facilities.”
Before joining CSL in 2019, McKenzie worked with global names from Johnson & Johnson and Biogen.
He says it’s too early to tell what the disruption of tariffs is likely to represent for the pharma industry. Although the Covid pandemic represents the biggest disruption for the sector by far.
“Not only from a supply chain, but the redirecting of dollars towards trying to solve that problem,” he said.
“Our job is to continue to work with administrations around the world to deliver medicines. From a CSL viewpoint our 100-year history is about resiliency and making a difference for patients. I think we’re in good shape across the majority of our businesses.”
the numbers don't attract me , but those that bought in years back should be cruising ( and grinning )CSL still slowly dropping I believe it's fear of tariffs and recession and vaccine hesitancy. Ugly graph.
17% drop over last 6 months.
Good evening
Was going to cash in the $230 capture but the wind left the sails, oh well steady steady she goes...
..
| Confirmation Number | Order Number | Trade Date | Buy/ Sell | Security | Units | Average Price ($) | Brokerage (inc GST.) | Net Proceeds ($) | Settlement Date | Confirmation Status | Download Confirmation |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 161728835 | N200280536 | 2/05/2025 | S | CSL | 200 | 255.800 | 61.39 | 51,098.61 | 6/05/2025 | Confirmed | D |
Hi rcw, M8, CSL have more problems other than those few mentioned above.Good evening,
David Wilson has nearly four decades of stockmarket experience and is currently the deputy head of Australian equities growth at First Sentier and in charge of the firm’s $10 billion Geared Australian Share Fund.
Contained with an article by Joanne Tran AFR on 12 May 2025:
According to Wilson,... not all companies get it right. One business currently in need of a reset, is blood plasma giant CSL.
“CSL needs to recover its mojo,” he says. “The Vifor acquisition was very disappointing and reduced the confidence of investors in the company. But the underlying blood products business is still a world-leading operation. It just needs to come back into focus.”
Wilson adds that while CSL’s vaccines business is more volatile, it’s been well managed overall – “they’ve done a solid job there. The real problem was the acquisition. But I think they’ve now recognised that, and the next step is re-establishing its earnings momentum.”
Holding
Kind regards
rcw1
Mate, agree totally, if CSL ever reach $350 I'll be a willing seller ! Brokers are like Real Estate agents.Hi rcw, M8, CSL have more problems other than those few mentioned above.
Such as an improved and believable set of Financials.
Then they have to find a cure for their regular Foot in Mouth announcements.
Then they have to stop the Analysts continuous & stupid Target Price calls of $350+.
A hint, $223.55, $211.04, then $175.45.
Sorry to be so blunt M8, but that needed 2B put into the CSL arena.
DrB.
The general public lost faith in CSL abt 2 years ago, that's just general knowledge.Hi rcw, M8, CSL have more problems other than those few mentioned above.
Such as an improved and believable set of Financials.
Then they have to find a cure for their regular Foot in Mouth announcements.
Then they have to stop the Analysts continuous & stupid Target Price calls of $350+.
A hint, $223.55, $211.04, then $175.45.
Sorry to be so blunt M8, but that needed 2B put into the CSL arena.
DrB.
C'mon CSL - Dive to $223.55, you know you can do it, it's where you belong, down there a LOOOONG Way from the Mythical $350.00....Hi rcw, M8, CSL have more problems other than those few mentioned above.
Such as an improved and believable set of Financials.
Then they have to find a cure for their regular Foot in Mouth announcements.
Then they have to stop the Analysts continuous & stupid Target Price calls of $350+.
A hint, $223.55, $211.04, then $175.45.
Sorry to be so blunt M8, but that needed 2B put into the CSL arena.
DrB.
Dr Have you thought about changing your Photo from a Bull to a Bear?C'mon CSL - Dive to $223.55, you know you can do it, it's where you belong, down there a LOOOONG Way from the Mythical $350.00....
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