Vodafone Share Chat (VOD)

Shares of telecommunications giant Vodafone have been on a prolonged downtrend this year, falling to levels last seen back in 2010. Lack of significant revenue growth in key markets has been exacerbated by a very large amount of debt (circa €40bn) that the company has taken on to finance significant mergers & acquisitions in Europe, India and Australia. Recent change of a long-term CEO is also seen a considerable risk.

Nevertheless, with the company’s shares falling to 8-year lows, Vodafone now presents a bargain opportunity and the majority of brokerages are still seeing an upside potential from current levels. While the most bullish forecasts are dated, the average target of 207p still represents a significant share price appreciation.

20 out of 24 analysts polled by Bloomberg see a share price upside over the medium-term. Broker Berenberg notes (19 Sept) that Vodafone needs more earnings momentum to “drown out risk” and the upcoming half-year report (13 Nov) presents a trading opportunity for Vodafone shares, should the results turn positive.

Will Vodafone return to July highs of 188p (+22.8%) or fall to the May 2010 low of 124p (-18.9%)?
Broker Consensus: 62.1% Buy, 20.7% Hold, 17.2% Sell
Bullish: ROE Equity Research, Buy, Target 300p, +98.7% (14 Nov 17)
Average Target: 207.8p, +37.6% (10 Oct 18)
Bearish: Macquarie, Underperform, Target 125p, -17.2% (8 Oct 18)

Was also tipped in Investors Chronicle a week or so back. I think I've seen it tipped 3 or 4 times lately

90p! if new recession kicks in! Anyway, as a usual trend, negative start by Vodafone means it will end in negative.. Lets hope its not more than 0.50%.. Otherwise we will be back to square one!

I read it could go to £1.45

Ppl are getting punked. This will be on 155p later.

I do not recall seeing this article, so sorry if has. Worth a read.
Vodafone was tipped as a 'buy' in the Sunday Times' Inside the City column, with the mobile telecoms giant down 35.4% this year and unusually trading at a discount to its European peers. Concerns for investor have been the investment needed to buy 5G mobile airwave spectrum and plans to acquire European cable networks from Liberty Global. Then chief executive Vittorio Colao quit and new worries reared their heads about tougher Southern European competition.

October's auction of Italian spectrum saw Vodafone forced to splash out €2.4bn, more than the previous guidance for €1.2bn spending over the entire year. Analysts have since cast doubts on the company's generous dividend, with the shares yielding above 8%.

But now, with the shares at their lowest level since the summer of 2009, "the risks are more than priced in", the column said. Analysts at Citi feel there is no imminent risk to the dividend, while those at Redburn say current forecasts for full year underlying profits of €13.9bn, a 5% downgrade from €14.6bn previous expectations, is not too shabby.

Of course more people own a phone than a house, most of them are still living at home with there parents, but if they could get a 1% mortgage, perhaps they would buy a house,but most mortgages are a lot more than 1%.

$ weakness today

No I said close at 154p. Not 153.6p. Still think itl bounce later with USA. This is the time to buy not sell.

The FTSE RSI has just moved below 30 to 28.1 which based on the RSI would be classed as oversold.
Oversold means an extended price move to the downside. When price reaches these extreme levels, a reversal is possible.

The same argument applies to the VOD share price. A reversal will come about in due time; patient investors here will be rewarded. Meanwhile, why not enjoy the generous dividend? There is no reason to suppose that’s it won’t prevail.

Mrd5432, come in 154, your time is up! I have spoken , well, posted so it will be so. Or as Captain Kirk says "make it so"!
However dog walking to escape decorators and builders today might make for an extended break from the computer.
Fingers crossed for those waiting.

You could of course be right and time will tell on the liberty deal assuming price pressures don't upset the prospects.
I made no secret that I am out in any event until 2019 in equities regardless of opportunities in the next 9 ish weeks.
There is probably more happening than most Octobers though.

08:34 1 share buy. For those into secret codes, I've forgotten what it's supposed to mean

mishmos

Most of those mentioned have regular income so aid the status quo. Normally some sort of hit takes place resulting in a change of board and then direction. I suppose looking ahead they see increasing earnings to eventually reduce debt ....... Until the next big deal comes along. Like Liberty now. It sounds great if the plan stays on track but occasionally events overtake.

I suppose the other question is what would happen if they didn't do the deal. As for valuation change to 220 and why I could also reverse the question about the fall. Hence why I like the steadier dividend

As for the bounce it looks like Mr markets being kinder over the last couple of days and Oct will be passed, a month renowned for sharp corrections. Maybe I should save my Is allowance for this time next year.

No I'm not blind, many have made a case over whether any divi should be paid at all and should be reinvested in growing team company. I did also say I preferred low debt who wouldn't

Growth can come in different forms though, even if the SP stayed exactly where it is forever by reinvesting the divi you can compound creating growth. I've stated previously why I like dividends and the regular flow of cash coming in, hence why I buy income shares like Vodafone.

The bean counters decide how to managed the debt and its a tool in their armoury. Going back to the house purchase, why would you pay off your mortgage if you were on a 1% rate? You can get better investing and inflation eats away at the amount over time effectively reducing it.

I agree things will change and then paying down that debt might become more of a priority. Vodafone have highlighted that debt will be at the top of the range and are targeting a reduction. Let's hope trading allows this to happen. Again going back to the house purchase what happens if you loose your job. Your mortgage might be cheap but if you can't pay the interest you will lose your roof.

I suspect there are more people that own a phone than a house. You can't manage without a phone but you can without a house. Maybe the older generation might disagree.

Its not hitting 162p today! Maybe by friday. Provided markets behave.

Why? You are hitting 162 today aren't you.
Faith. It's what got jesus crucified. LoL.
I'll smile if it does though!

Personally, I agree about the debt reduction,but it is all about the b/s now. Corporate debt much like personal debt is the norm and sanity economics doesn't exist.
The high divi game at the expense of corporate governance. Vod is in a trap like companies such as GSK, BT and SAGA. They don't have the underlying figures to attract true growth investors (BT is enjoying the growth ether currently despite bolloxing up the monopoly they enjoy) so the funds who have to invest love the divis.
Even if vod does rise to the mythical broker 220 what would justify that valuation as the mythical asset valuation is fine as long as you are going to break the company up and actually realise the supposed book value. But the numbers aside from the debt mountain fueled divi don't in my opinion warrant 220.
The share is actually one of the "dog" shares in real terms every since the brown stuff hit the fan post tech bubble and again in the past 10 years. Still, at least it isn't a penny share like Lloyds yet.
Let's see if it bounces a little today.

Trouble is Netflix is experiencing subscriber burnout, a lot of subscribers have seen all of the content they want to and there isn't enough left to keep them on board hence the churn they have been experiencing. But VF are a multi-string business that can weather storms like this.

I used to admire you posts, but the last 2 make very little sense. You would have to be blind not to notice that some might think that vod would be better off paying its debts than paying a very high divi. I listen to both points of view, & personally hope that vod can afford to continue its high divi, without the share price falling, but you just seem to have a blinkered point of view. If you own a large amount of vod shares, then of course the big recent falls are very bad. Comparing vodafone shares to owning a house is crazy. I own a house because i need to live somewhere. I own vod shares in the hope to make a profit.Totally different. So your post 0 out of 10.

Interesting how voda is silently sneaking in to them markets and not saying anything. Voda will be a behemoth once it takes over libertys assets.

Mike
Interesting, and I dont think net neutrality applies to 4G/5G premium services, so Vod could go stratospheric.
Netflix results tomorrow will be revealing also..

https://www.lightreading.com/video/ott/why-vodafone-is-betting-on-cloud-video-/a/d-id/746818

Trading at 155+p in USA. Lets see if it can hold. We are bullish now. The patterns been confirmed. Now 2 steps forward 1 back. See you all at 162p.

MR, dont say 2025 or they will be marking in 6G before 5G has been monetised..

Over 153 at close is firming up