Shares digital

GlaxoSmithKline (GSK) £11.14

The drug giant’s shares have performed horribly since we tipped them at £13.44 barely a month ago, but investors should not give up hope. Last week’s downward steer to forecasts from outgoing chief executive Jean-Pierre Garnier has cleared the decks for his successor, Andrew Witty, and should provide a base to forecasts. Warren Buffett’s purchase of a £33 million stake suggests the investment guru thinks a PE of less than 12 for 2008 means much of the bad news is now in the price.