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Just nothing going for the company
If this running the zoo didn't see that China connections will mean no merger it shows again how ill equipped to run a raffle let alone a company. Will the rampers stop the rubbish around support . Every time the dreams are shared the junk drops to new lows. 20b wiped off market cap. Ttd sad part is they sell assets and then squander the proceeds. In a country with the worst performing index, this stands out. Where to hext 60s.
Those 6s just around the corner. Today’s drop is to do with doubts about the merger.
Everyday there’s a reason for a drop. 3% down when the US opens
Really you can’t real my think that haha that’s the craziest thing I ever heard. U brightened up a dreary start to my week. Keep it up please I need a laugh now and then to keep me sane
Will DAB be a game changer? Sumitomo on board with 20% stake while Vod holding 80%.
EOT is probably the next big thing
"I’d say you’re buying a debt mountain on a 10x PE which is basically crazy expensive for that risk. "
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You mean a forward Free Cash Flow of ca4x lol?
The inherent business model of telcos is no different to utilities, you need to make capital investments before turning a profit. Unlike other telcos, Vod is actively creating new businesses such as Mpesa and DAB with a different operating model requiring significantly less capital.
As has been said multiple times in the past, Vod is the least leveraged major telco in the world.
No need to invest in vod if you don't believe it, but no need to be deceitful.
"It’s very expensive for the amount of debt On a PE ratio of 10. Can see this dropping to a PE ratio of 6."
I haven't bothered working out the P/E myself, but various sites are putting it below 2.
https://finbox.com/LSE:VOD/explorer/pe_ltm/#:~:text=Vodafone's%20p%2Fe%20ratio%20for,March%202022%20at%2040.4x.
https://www.google.com/finance/quote/VOD:LON
https://simplywall.st/stocks/gb/telecom/lse-vod/vodafone-group-shares/valuation
Simones, If you talk to the long term holders here, I'm one of them but there are others who have been here a lot longer, every year it's said this is undervalued and it will go up next year, but every year it drops lower
It might be 110 by Christmas as you say and i will be pleased as at least i will make some profit on my last 86p top up here, but there are definitely no guarantees with this one this could go either way or stay at these low prices for a long time
IMHO
Nobody knows what’s going to happen here or anywhere else.
Your either in our out for your own reasons, it’s that simple.
The title of this thread is ridiculous and so is Vodafone's P/E of around 1.95, the market is having a laugh in my opinion. Although I too am a long term holder, and enjoy the dividend, I believe they should suspend the dividend after the next payment and divert the cash into Buybacks. Telecoms in general are under the cosh, with Vodafone especially affected, and a victim of market games. What I don't like, is the way the market have tools to build large holdings under the radar, with little impact on the price, but companies are subject to strict rules preventing them from buying back their own stock without advising the market in detail first. At the current price it makes sense for Vodafone to buyback large quantities of its own stock, until the price exceeds a certain level, it's a no brainer.
Forward p/E is where the market base the next set of results to be - much much higher
Yes TerryMC1....potential investors may be best watching this for a while....what a price...😢
"Forward p/E is where the market base the next set of results to be - much much higher"
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Earnings are always subject to a lot of shenanigans as it can easily be fudged to look good. What you should pay attention to is the FCF. On paper a company can come across as profitable, but no cash coming in. You want good examples, look at Enron, GE, Wirecard etc.
FCF alongside sustained investment into R&D as at times a boost to FCF can be achieved at the expense of R&D cuts. Another is M2M of assets to ensure a true reflection of recorded asset values.
Again, I challenge you to list global companies with similar FCF multiple as vod. Indeed, you will quickly see BP and Shell are other examples where their cash engine monster isn't being valued as it should - The FTSE100 omen and the Brexit gift.
Exactly. This is a company that contractually gets paid every 30 days and increases it revenues inclusive of inflation every year, again under contract. No wonder VF is in pretty much every UK pension fund.