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You know you can' take the PE ratio righ now? It's a PE ratio heavily effected by a one-off transaction. The forward PE ratio is more like 9 which whilst low, it doesn't really scream massively undervalued. Unfortunately, we have a Low return on capital employed, so whilst the Market value vs Book value looks really low, if we aren't then sweating those assets well enough (eg a good ROCE) then the earning will be low hence the "OK" looking forward P/E.
Cracking post from TA1
Added another 10k at this silly low price.
Big thanks to the shorties here. š
Fleecy
āI would think there's a limit to how far the market can push the price down from here.ā
Yes and as with any other share that limit is zero.
Last time I checked (about 12 months ago) Voda was saddled with over ā¬40 billion of debt. As the shareprice tumbles the ratio between market capital/debt increases. In the long term that is unsustainable. Cut throat competition and wafer thin profit margins adds to the sectorās woes.
Itās my belief that both Voda and BT will both need huge capital raises further down the road, to remain in existence. So all those dividends youāve reaped will be paid back with interest in order to retain your slice of these companies. It bewilders me to think that Voda continues to pay out unaffordable dividends which arenāt covered by earnings. Effectively they are borrowing even more money to pay dividends and digging themselves deeper into a debt hole, from which there could be no return.
In my opinion Vodafone could fold, go bankrupt - followed by a fire sale of its assets to pay off its creditors. Thereāre clues in the shareprice Fleecy - and Vodafone is being priced to fail.
Now around 2, clearly Vodafone is undervalued.
I would think there's a limit to how far the market can push the price down from here. The share price isn't important to Vodafone's finances, as they clearly don't need to sell stock to raise capital, so the price will have to turn at some point. The Telecom sector has been underperforming for a number of years and Vodafone has been particularly affected by the negative narrative directed at the sector. From a retail perspective I have a large holding in Vodafone and no intention of selling, so I wont be falling victim to the market's games. In my opinion, Telecom stocks will eventually climb out of the hole the market's thrown them into.
Please elaborate how have you hedged your bet?
Got to hedge your bets
Jax, with all your negative predictions I think you should sell up. Looks like you think you will be wiped out.
I have some leftover thanks for asking
Jax, hope you have sold up by now ??
Still no merger news and mcap getting close to what Vod paid Liberty
Probably one of the worst deals everā¦.tragic
Iām amazed at how much you guys are letting the trolls wind you up. Donāt get me wrong, itās worth listening to every opinion that contradicts your own thinking, provided it thereās some basis in reality.
If someone is saying that theyāre long but they think itās going to 50p this week, or that the dividend wonāt be paid without providing a reason why, just filter and move on. Life is too short.
My current position is that Iāve done a couple more top ups the last week or so, taking my average down to 82p including dividends. Iām probably not going to add to my position for now, Iām happy to wait and see.
I am amazed that the SP has gone so low. I would normally say it represents great value, but the key in the short term is the merger and how the market reacts to that imo. I donāt mind waiting for the details, but I can understand why people are getting impatient. Patience is the name of the game though
GLA DYOR
Jax, have you sold your shares yet then?
Why are you intent on losing the lot of you think vods going bust?
Hi rob. Sorry mate, but I don't get this egg on your face thing. We all know that vod has been a bad investment lately,some win,some lose. (unless you are neutral of course) Guttersnipe neutral? Are you serious? Bi polarised more like.
I am not talking those who have lost money on vod. I am talking about the sad idiots in life on here who just want to put down those who have lost money on vod shares. They are the real losers in life.
I would not want to influence anyone in any way.
From now on i will be neutral also.
Gutter nobody does know, and I'm not sure which are the worse the ones trying to persuade others to sell up at a loss or the ones trying to influence others to put there life savings in here
it will all come out in the wash as they say
for myself i will just try and remain neutral for now, but i can't deny being disappointed seeing this drop down so low
Robleo - It will not be the sniper for sure, i just watch and wait for weeks and weeks until something seems cheap.
Patience is key.
If you have been right about Vodafone going down and said so here and so have not bought any then you are not a loser, the fact is you are a winner because you still have dry powder ready to pounce on any bombed out share.
My ginger used to pounce on birds and slow worms and mice and anything else that moved until a nasty car took him out.
Dan, some of these guys are going to end up with egg on there face for sure, just not sure which ones at the moment
NewSid. There is some crazy stuff these guys are on, It's called, I know it all, & I told you so. They are the real losers of course. Sad people.
Jax05, whatever you're on mate I don't want some
I don't mind people venting frustration @sp but please don't let your imagination run amok!
ForensicBloo. Are you joking? Do you still not know what an uncrossing trade is? It is the uncrossing trade auction & means nothing as far as the sp goes . Give us a break? This forum is a joke. Even the gutter man gets it.
Thereās going to be some company destructive news soon - the market knows this and is walking this down accordingly
A dividend cut linked to an ugly cash raise or possibly bankruptcy with the German business being the catalyst.
Appears so
Further decline tomorrow then