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My apologies Rob & others. I felt that there was a bit of depression floating around on the board in the morning as the SP went under 1.10 so I attempted to post something positive to cheer posters up, keep chins up etc.
The latter post when I said I wouldn’t buy back in yet is how I currently feel, please note the yet.
I have £1 as a buy back in, depending on the next earnings report on which the next dividend payout in Feb ‘23 depends. I sincerely hope for you guys that it never gets to £1 & that VOD goes from strength to strength.
Anyway, I’ve recently got into house building stocks so hoping to keep Mrs G in her gin and new shoes over there. GLAll here.
Gary, you are giving out some very confusing messages here
early this morning you posted this
My recent research shows that on the whole analysts seem positive about the stock & there’s a consensus Buy rating. Morgan Stanley analysts believe the shares could reach 1.80 which represents a 60% upside. I’ll be back in if it gets to £1, the benefits of 5G will have an effect sooner or later.
Please only post positive messages today …
then at the end of the day you were getting very negative saying you would not buy back in here
Well keeping paying a div doesn't seem to be helping the SP either.
Mole I wouldn’t go as far too say that VOD should cancel the dividend. Many institutions / pension funds hold here mostly for the divi & if it were cancelled in its entirety there would be a massive sell off & the SP would be in the pennies, imagine a run on the pound and there we would have it. With a 25 or 33% reduction & IF the savings were used to reduce debt now that would focus the mind. They have been mooching along paying too high a divi for years & where has it got the SP, precisely nowhere, just saying.
Gary is correct. They should cancel the div.
Dan is correct. IT will not go down well
Fleccy is correct. There are too many institutions that won't let them cut a div. VOD is stuck in a corner having to appease the wrong type of investor while they need to be directing the capital to future business. Reducing debt would be nice, but not necessary if they inflate earnings. They won't do this without heavy investment, but they keep throwing the capital away on buybacks and divs. Institutional short sighted nonsense.
The market knows it, hence the SP decline.
A company can issue shares subject to various conditions for a number of reasons, usually to pare down debt. I recall them raising £2.9 billion through the issuance of mandatory convertible bonds a while ago, these were then converted to shares to pay back the bond holders. Not saying they are going to just that they can if the earnings take a downturn.
I don't think vod generally issue more shares. They do buy back a vast amount however via Goldman Sachs, which is explained in the R.N.S. on this site. They may have to issue shares to the bond holders, this all part of the Goldman Sachs buy back program & is mandatory. It is complicated, but it is the way that vod borrows money. You could try to get more info on the vodafone site.
Sold this last year, have been waiting for the right time to get back in and looks like today is it.
Got back in at 108, very confident this will be back to 140-160 within a year
They are buying back shares
Why would they issue them out again
Dan, the market may see any dividend cut if it happens as a sign of a progressive, prudent BOD but who knows.
It's all about keeping the earnings flowing & god help the company if they take on any more debt or issue more shares.
I wouldn't be buying just yet personally.
Hi Gary. So put in a nutshell, are you saying that vod should cut it's divi? That would go down well.
Bt is also falling so it's sector wide for now. I think
'the Ministry of Magic' LoL
"I can’t understand Vodafone’s cash management strategy so that’s enough to keep me out"
Vodafone is confusing beast, worthy of casting in the next Fantastic Beasts sequel, but Vodafone's been like that since 2000; Maybe you should get on the Floo Network and message Newt Scamander, he might have some insight. Even though Vodafone's finances are mystical and beyond the understanding of us mere Muggles, you should take confidence from the 80% institutional holding's of the Ministry of Magic.
No1P asks & it's a great question - "Can someone give some insight into why this is dropping everyday?"
Answer Debt & sadly Vodafone has a huge mountain of it.
At the halfway point of this year VOD's net debt stood at €43 bn. That’s a fraction more than the market cap of the company itself. And as we all know with telecoms companies they require huge amounts of investment each year & have to pay ever increasing licensing fees, so the debt issue isn't going away UNLESS that is they cut the dividend. IMO they may have to cut the dividend in any case especially if earnings decline which is occurring in VOD's biggest market, Germany.
Back to the dividend & the outlook here, It might have been steady for a couple of years but it’s not covered by earnings. We have a company with massive debt, paying uncovered fat dividends and in the midst of a big share buyback programme.
I think that the market is realising that VOD's dividend policy does not make any fiscal sense & this is IMO the key for the future of the Vodafone share price. Should earnings rise to cover the dividend adequately, I can see the shares gaining and investors enjoying years of passive income. But if not, I’d expect a future dividend cut.
So will I personally join Cheapsharesboy & buy back in?
It's been said before that we should never invest in a business we cannot understand. I can’t understand Vodafone’s cash management strategy so that’s enough to keep me out, for now.
GLAll though & I hope I'm wrong but this is just my take on what could & should be a great investment.
fleccy. Come on mate, surely you can afford to buy Mrs fleccy some new shoes? Be constructive?!
Pound at 40 year lows vs USD
Bargain for someone.
No 1 plasterer. I don't know why the sp is dropping, there may be many reasons, (which have all been aired before). Do you? Not very constructive from me I know, just being honest. My point was about constant, repetitive, non constructive, negative comments. Perhaps you are not into a bit of humour? When you are losing money, you have to laugh sometimes. Good luck though.
"Danielh, at the rate this 'share' is dropping, not sure if I'll be buying any new shoes for a while anyway !!"
You must be a Woman, connecting shares with shoes.
E& paid £1.30 so it’ll do well from here.
It would be nice to see the £1.50 for sure
Danielh, at the rate this 'share' is dropping, not sure if I'll be buying any new shoes for a while anyway !!
In one respect a low share price is good for Vodafone's finances, as it significantly reduces the cost of mitigating dilution by buybacks in relation to MCB's.
As far as Vodafone's institutional shareholdings, the top institutional shareholders hold around 50% of the issued shares, with Total institutional shareholdings adding up to around 80%; The likes of us only own around 9% of the company.
https://simplywall.st/stocks/gb/telecom/lse-vod/vodafone-group-shares/ownership
Can someone give some insight into why this is dropping everyday ?
Keep the comments Constructive like yours ?
Well done Cheap. All we need now is the sp to get back to cheap as chips! £1.50 at my local chip shop. Let's try & keep the negative comments constructive please. Not the same old sack Nick Read, sack Nick Read, because it is getting very boring. I think we all get the point by now? I bet he has got very nice shoes? Better than mine I am sure.