I dont think that they have "an absolute **** load of money available to them." They did get a big lump for Verizion which they returned to shareholders in what some described as a "windfall" They did keep a bit to reduce some debt and to invest in doing up the network, called Project Spring.
"This and 02 going away could be a big movement for them in the future" I'm not sure who you mean with "This" but they are not going away but there is most likely some M&A reducing the main mobile companies here in the UK to just three from four main ones. This is not necessarily good for Vodafone and is more likely a negative.
Mr Market has risen nicely the last couple of weeks, Vodafone is trading well above 200 day averages and like Tesco is relatively more expensive that it was. The M&A might be part of that rise.
Each to their own and I dont know your personal circumstances but I might be tempted to wait a bit and see if things come off the boil a bit. Greek elections, a market turndown etc and you might find your investment coming in a bit cheaper.
I dont know when exactly this will happen but things don't go up for ever. I too hold Tesco, (now without its divi) so understand your situation to a small extent.
I take your point and agree that holding long term in blue chip shares will usually give a profit, but say the following. Playing roulette is gambling. Share trading is all about taking calculated risks. Selling high with the intention of buying back in lower is not a given, it is a calculated risk. However, at the other end of the spectrum simply investing long term in one blue chip company (eg VOD) over another blue chip company (eg TSCO) is also a calculated risk. Blue chip companies are not immune from their SP taking a massive hit. For example, while Tesco's SP has recovered somewhat from a few weeks ago, are there investors who have thought they should have invested elsewhere instead of TSCO? Given the fact that their divi will be cut I would say yes. The same with LLOY, which was one of the top income shares before the recession. I'm sure there are plenty of PI's locked into LLOY with huge losses and no divi to provide a source of income. Are many of them thinking they should have invested in a different blue chip share. Ultimately people who invest or trade in shares do so for one reason, to make money. There's nothing dirty about that fact. There are several different share trading/investing strategies and too many to list here. One strategy I have employed with VOD, and no doubt other PI's will have done the same, is to take a calculated risk after looking at all the available info that the recent rise in SP is a little overdone and will re-rate over the next few weeks or months etc. If it doesn't re-rate to the 220 I'm looking for then after carrying out my research I will find a decent entry point and invest my money with another blue chip company. I am long on several other shares. With VOD an opportunity presented itself and I took it. I will still collect the divi next month and am quite happy to let that amount run if this does go higher. So to conclude I do not agree I am a gambler but rather a calculated risk taker, which is the nature of the game! GLA
A great theory,but only if you know better than the market .Investing in blue chip shares will usually give you a profit in the long run,but only if you hold on to them. .As soon as you strart buying then selling, then buying back again you loose that advantage,because of dealing costs & stamp duty.You then become, not an investor , but a gambler,& unless you know something the market dosnt, that's all you are. But good luck to all you gamblers anyway!
Thinking of buying in after my Tesco shares are sold... heard good things about vodafone and apparently they have an absolute **** load of money available to them. This and 02 going away could be a big movement for them in the future. I'm looking to come in soon
This isn't science, but I'd second what youv said. The â‚¬ is ******! This trillion â‚¬ stimulous is going to possibly end in disaster, when? Buying Euro stocks. I have the last laugh there as I have owned Novartis also Siemens in my portfolio for 4yrs or more.. Both I bought in ADR & Siemens who have changed from ADR to OTC form and from monday have gained on the exchange fluctuations.
Though if you look at where the sp is on a historical level with consolidation effect, its cheap to where it could be, plus its still a divi player until anything materialises about this possible divi cut over next 12-24mths.
I hold various tranches (165,134.5,170,191) in Vodafone stock.
Im a bit surprised that the competition commission would allow 4 operators to become 3. I suppose the M&A activity will have to explain how this will better the consumer. I can see the merits of why Hutchison would like the deal to go ahead but suspect that they will try and highlight increased investment will lead to a better service and increased efficiencies thus cheaper for the consumer sort of line.
This might be true short term but more competition is generally better for the consumer. The big six is deemed not enough for the energy sector so why is a big 3. Although it appears to be going that way in Europe. I know there is talktalk, Tesco mobile but they piggyback on the big 3 so it not a real alternative.
Setting up is very costly so unless there is some unfair political system implemented I cant see many newcomers. Maybe a new regulator will be set up by a future Government that will take control of the network assets and force them to share it with some newcomers. Wasn't BT subject to something similar with its landlines.
As we become more globalised, holiday and travel more I expect more linked services such as 3's where we can use our mobiles anywhere.
It's great to see the SP shoot up as it has in the last few weeks but there has been nothing coming out of VOD itself that justifies it, no reported increass in profits or lucrative asset sales. Rather it is the potential for consolidation in the telecoms sector, particularly with the proposed purchase of O2 by Three leading to theoretically reduced competition, and the widespread affect of the QE announcement. (You must be really 'unlucky' if you are holding a European share that fell today.) after this recent excitement has died down I thing the SP will go back down by about 10% and not recover until we see some tangible improvement in VOD's performance, i.e. increase in profits. I am well in the black on these shares now so will reduce my numbers by half and sit on the cash until the dust settles. Remember the old adage by Warren Buffet, sell when everyone else is excited and buy when they are nervous. GLA.
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