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L.T.I. G59 gets a little stroppy at times. I have got used to it, so don't take in personally. He is normally very pleasant?
well, if you can't blame the ceo and board of directors for the rubbish performance of this company over the last 5 years, then who can you blame? surely that's what they get paid mega salary and bonuses for, just look at the charts since nick reed took over
A very valid question. The answer is can you make more % profit than you pay on your debt. If yes then don't pay off debt, if no then you should pay off debt. I don't have the answer because I don't have a crystal ball. I have tried many times to find out what % interest vod pays on its debt, but I gather it is quite complex. I think long term holders of vod as I am, tend to favour keeping a good divi, as in time you will do very well. Many posters on here say they buy vod for its high divi yield, so I assume they would be dead against cancelling the divi. It is not black or white in my opinion. Lets all face it, vod has been a disaster as an investment lately, but it is the future that matters, as the caveat says,past performance is no guide to the future.
G59
''LTI - No one, not one single person in the whole wild world is interested or cares that you have just brought VOD @ 96p.''
Well that is wrong isn't it - you are interested and their maybe someone else.
You really should learn not to speak on behalf of every person on the planet.
Tempted to buy in this morning, but I feel it may have further to drop. A lot of PI’s seem to have a fixation with debt, remember debt is cheaper than equity, it is what they do with it that matters. It is only a problem when the debt cannot be serviced and we are nowhere near that. That said I would love to see this hit sub 90p.
just when you think things will never get better
they suddenly get worse!!.
Mikey says on the vodafone share forum. "now we could be in trouble-Russia hitting Poland with a missile killing 2 people". You could not make this guy up. Is he trying to be funny? Wrong forum Mikey. Try the war in the Ukraine/world war 3, thousands of people killed debate forum. Give us a break?. But at least he is not blaming Nick Read?
Vod don't need to raise capital, just cancel the dividend for a couple of years. They are trying to please everyone by borrowing from Peter (more debt) to Pay Paul (dividends to shareholders)... €45 billion debt is just too much Imho! It ain't rocket science is it?...
So Moniman, short of selling even more assets to try and pay down its debts (the circle of death) what would be your solution? VOD operates in competitive markets and has limited scope to either increase prices and/or gain additional market share (without even further investment). Simply moving the chairs around on the Titanic wouldn't have saved it! It would seem that the only realistic soultion would be for VOD to now undertake a sizeable capital raise (at least £10bn) to try and break the back of its debt mountain (put simply, VOD returned too much capital to shareholders in the past and should have retained more to pay down its debt).
A lot of rubbish being talked here about debt. All successful companies carry huge debt, it is par for the course. I am more interested in profit, the future and a good dividend. All 3 of these points look good to me with a divi around 7%. The pensions institutions will be loading up here within the next 10 days. Short this at your peril.
Mikey, a nuclear war would wipe out all subscribers, not just Vod subscribers.
I imagine communication infrastructure would be afforded a certain level of protection and I am sure core physical infrastructure can withstand significant bombardment.
As Del boy commented on 'the russians are coming' and building a nuclear bomb shelter....'The end of the world could be just the break we’re looking for! Oh we’re pretty shrewd Rodney. '
Now we could be in trouble - Russia hitting Poland with a missile killing 2 people
'Vod operational metrics are good and on plan. Debt markets are worrying about high interest rates. As long as the cash keeps trundling in I bet VOD recovers like IMB and BATS.'
I hope so Vodger. I like your thinking that FCF is discretionary and debt is repaid as it becomes due, net of inflation.
I was always taught to raise prices to maintain profitability and VOD is proposing just that for many of its european markets. The regulator says an operator who reduces costs will eventually exit a market so VOD is limited in what it can do on costs if it is to maintain regulatory compliance and influence market consolidation as an outcome.
NewSid. you say "Nick Read needs more people like me" Of course he does, what he doesn't need is people like you, who criticize without any answers or solutions. Do you really think that just sacking Nick Read is going to solve all the problems? What will the new C.E.O. do? If he fails, then you will be back on here again, saying sack him? Vod's problems are massive. Just open your eyes.
What argument, I thought it was a robust adult discussion. Good luck with you Vod strategy...just watch the Debt mountain though!
Sorry moaningman but your time has run out. You will have pay for another argument, (as is in the famous monty python sketch).
https://www.lse.co.uk/ShareChart.asp?sharechart=VOD&share=Vodafone
CFO Ms Margherita holding almost 7M shares also.
Directors do have a considerable interest and incentive in the SP turning around here.
I'm very calm...
moniman What is your problem. I am simply pointing out that you don't know the difference between enterprise value & market cap. They are totally different. I haven't disagreed with anything else that you have said & am certainly not burying my head in the sand. Calm down mate.
Well Dan that was a great explanation, but the markets aren't buying it, that why the SP chart shows a 5 year terminal decline from circa 230p in 2017 to 95p today..The dividend has been almost halved during that period hence the decline...I really don't see any way back for the SP or the Dividend, unless you have a cunning plan..if so maybe you should enlighten the BOD? Aimho Adyor! €45 billion debt pile is huge whatever way you decide to calculate the value of this company...GLA.
velladean. Thank's for your post. I will try to explain, but as I have done this before, sorry to repeat myself. Enterprise value is the value of a company, in the same way as you might value a house. If own a house that is worth £1 million, but it has a £65.000 mortgage. It's enterprise value is £1 million, 1.5 times it's mortgage deb't, but my overall investment (market cap) or equity,is £35,000. £1m minus £65k debt (mortgage), so my debt is almost twice the market cap. M.C.B.'s are more complex, They are mandatory, so vod have to buy the shares back. This is done though a buy back scheme buying back about 6 million shares a month through Goldman Sachs bank. These are then held in treasury by vodafone. These shares have no voting rites, pay no dividend, so are in effect cancelled. This is to stop the dilution of share value due to the issuing of shares to bond holders, which they have to do on the bond expiry dates. It is very complex, but I have explained it as best I can. Share options & incentive schemes to staff management are very different, but are designed as an incentive to those who work for the company to increase productivity & therefore reward them with a higher share price (hopefully) Of course management look after number one (as we all do ) but they do look after shareholders & the company they manage which is of course there job. Nick Read at the end of the day is just human, just done better than most? Perhaps he should go on I'm a celebrity to show his real self, like Matt Han****?
Dan, I've met many clever people over the years and your comments tell me that you don't fit into that category!!! All I can say is that the $45 billion debt pile has become unmanageable in my opinion. You can play with words or bury your head in the sand but the elephant in the room is the collosal debt mountain! Stagnant earnings, inflation, slowing economic growth in most of Vod's markets and debt concerns isn't good. If you think this is going back to 200p any time soon you are living in cloud cuckoo land. The only reason this isn't much lower is large institutional investors holding for the dividend, but this has been slashed from previous levels as stagnant earnings and the huge debt put never ending strain on the balance sheet it appears, hence the rapidly declining SP... Aimho Adyor, but good luck with your Vod strategy!
Hi Danielh,
You keep repeating the same lines about Nick;
"(Nick Read) has a very difficult job"- wow he's the only CEO of a large company that has a difficult job ;-)
" I don't think sacking him will be the answer"- sacking him will bring back the confidence of big investors who have all criticized his failing strategies.
Nick has a sign on his door saying "it's ok to do mistakes". It's not ok though to keep doing f***** mistakes
Nick Read has received an annual compensation of £36.15 million in fiscal 2020-21 as compared with £35.29 million in the previous financial year while Vod has been in constant decline
Nick needs more people like you Dan
Kiom, the Vantage deal kills any short term concern even though there is no short term liquidity issue. Discretionary FCF is holding up and VOD has confirmed €5.1Bn
Vod operational metrics are good and on plan. Debt markets are worrying about high interest rates. As long as the cash keeps trundling in I bet VOD recovers like IMB and BATS.