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“ Profitability will not be be diminished from the sales and yet Dan/KR
you both think that Vodafone would have a market cap of under 10 Billion Euro if all the proceeds were invested in Vodafone shares.
Words fail me”
If they invested in shares and kept them it wouldn’t , if they cancelled them it would. Either option is just moving money around in one form or another.
I’m not even sure the Vodafone Spain/Italy money is pure profit as presumably they carried a level of debt that Vodafone has retained but that doesn’t change the cash into cancelled shares neither creating or destroying value on its own.
If using cash to cancel out shares wasn’t zero sum, everyone would be doing it. It only makes sense when you believe your shares are undervalued and it’s the correction in that valuation that needs to happen. If the correction in valuation doesn’t happen, you’ve basically gained nothing by spending your cash to have less shares in issue.
Profitability will not be be diminished from the sales and yet Dan/KR
you both think that Vodafone would have a market cap of under 10 Billion Euro if all the proceeds were invested in Vodafone shares.
Words fail me
Dan
''Try to ignore all the nonsense L.T.I. is going on about''
''If vod buys back 4 billion euro's of shares & cancel them, the market cap will reduce by 4 billion euro's. The 4 billion euro's comes out of the market cap''
Kr
''Yes, the market will reduce the market cap/share price to reflect the billions being spent which is mitigated by the cancelled shares. In of itself, zero sum. Simple really.''
Yes you really are simple.
Dan/KR
Vodafone will receive 12 Billion from sales.
Using your nonsense logic -
If vod buys back 12 billion euro's of shares & cancel them, the market cap will reduce by 12 billion euro's. The 12 billion euro's comes out of the market cap
That would give the rest of Vodafone a market cap of less than 10 Billion
Dan, I hope so, a rise in the sp is what we all want, well most of us
best of luck
KR
you are getting worse
''If Vodafone had 12 billion cash and a market cap of 22 billion''
They are being paid 12 Billion from the sale.
'' then the market has already valued the remaining business at 10 billion. ''
oh dear oh dear oh dear - how pathetic a statement is that is that.
“ If vod buys back 12 billion euro's of shares & cancel them, the market cap will reduce by 12 billion euro's. The 12 billion euro's comes out of the market cap
That would give the rest of Vodafone a market cap of less than 10 Billion”
If Vodafone had 12 billion cash and a market cap of 22 billion, then the market has already valued the remaining business at 10 billion. The buybacks would then just be turning cash into cancelled shares which is zero sum. It neither creates nor destroys value on its own.
Hi rob. I realise the vod divi is being cut next year, but as I have often said I have confidence in the vod bod, & of course the lower the divi, the less the ex divi drop. Still a 5% yield at todays price, but it is a rise in the share price that I think is likely. Try to ignore all the nonsense L.T.I. is going on about. I think he is cracking up, waiting for the men in white coats I think. He sounds like a demented parrot!
Kr
''Yes, the market will reduce the market cap/share price to reflect the billions being spent which is mitigated by the cancelled shares. In of itself, zero sum. Simple really.''
Yes you really are simple.
Dan/KR
Vodafone will receive 12 Billion from sales.
Using your nonsense logic -
If vod buys back 12 billion euro's of shares & cancel them, the market cap will reduce by 12 billion euro's. The 12 billion euro's comes out of the market cap
That would give the rest of Vodafone a market cap of less than 10 Billion
Dan, i will probably get shot down for this, mng just gone exdiv, aviva & lloyds going exdiv 11th april, lgen going exdiv later this months, meaning the share prices will soon drop, all good dividend payers, remember the divi is going to be cut in half here next year, i know you are probably not interested, it all depends where you think you can get the best total returns for your investment
but best of luck if you are investing here next week, it;s easy to look up past performance as i did the other day, but trying to predict where you will get the best return in the future is a lot more difficult
have a good weekend
“ ''But the reduction in shares means the price stays the same''
The market values Vodafone (market cap) on a daily basis, which means the share price will change.”
Yes, the market will reduce the market cap/share price to reflect the billions being spent which is mitigated by the cancelled shares. In of itself, zero sum. Simple really.
Kr
''But the reduction in shares means the price stays the same''
The market values Vodafone (market cap) on a daily basis, which means the share price will change.
KevRow. Sorry mate, but who are you talking to?
“You are very confused - you want to top up at the same time as saying that the market cap will reduce to under 18 Billion Euro . Have you come to the conclusion yet that you have been talking nonsense.“
But the reduction in shares means the price stays the same, which doesn’t suit your narrative, so you’ll ignore that part again and round and round we go.
Dan
Vodafone will receive 12 Billion from sales.
Using your nonsense logic -
''' If vod buys back 12 billion euro's of shares & cancel them, the market cap will reduce by 12 billion euro's. The 12 billion euro's comes out of the market cap''
That would give the rest of Vodafone a market cap of less than 10 Billion
Dan
4 Apr 2024 16:04
'' If vod buys back 4 billion euro's of shares & cancel them, the market cap will reduce by 4 billion euro's. The 4 billion euro's comes out of the market cap''
Vodafone has net assets at about 63 Billion Euro
Italian and Spanish sales will bring in 12 Billion Euro
Vodafone market cap is less than 22 Billion.
The rest of Vodafone (excluding Spain and Italy) would not have a market cap of
less the 10 Billion Euro - End of
Dan
You are very confused - you want to top up at the same time as saying that the market cap will reduce to under 18 Billion Euro . Have you come to the conclusion yet that you have been talking nonsense.
No way I am taking my money & investing elswhere, in fact, I plan to top up with vod on Monday in my I.S.A.
Dan
4 Apr 2024 16:04
'' If vod buys back 4 billion euro's of shares & cancel them, the market cap will reduce by 4 billion euro's. The 4 billion euro's comes out of the market cap''
Dan
confused ? there is NO confusion -
Vodafone market cap is less than 22 Billion Euro.
Dan expects that to reduce by 4 Billion with the Vodafone investment.
With that outlook Dan , I suggest you take your money and invest elsewhere.
L.T.I. Are you feeling alright? You sound like a confused parrot
Vodafone market cap is less than 22 Billion Euro.
Dan expects that to reduce by 4 Billion with the Vodafone investment.
With that outlook Dan , I suggest you take your money and invest elsewhere.
''Thanks mate.''
why?
Dan
4 Apr 2024 16:04
'' If vod buys back 4 billion euro's of shares & cancel them, the market cap will reduce by 4 billion euro's. The 4 billion euro's comes out of the market cap''
Fleccy. You are a breath of fresh air. At last someone is talking sense. I am not for or against buybacks, but I think the vod bod know what they are doing, & clearly more than the new kid on the block A.K.A. L.T.I. does. It is just common sense that you can not buy back 4billion euro of shares without having to pay it. Of course if the vod sp goes up after the share buy backs then the market cap may even rise, & I hope it does. Thanks mate.
Flec
''Daniel you're correct''
Dan
4 Apr 2024 16:04
'' If vod buys back 4 billion euro's of shares & cancel them, the market cap will reduce by 4 billion euro's. The 4 billion euro's comes out of the market cap''