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I stand corrected. My apologies. Good luck all holders,future holders and future average downers!
bubbles. Vodafone shares have never been almost £6. You clearly have not got a clue about vod's historical share price. The historical share price is complex. I have been a vod share holder for over 20+ years (more fool me perhaps) but over all, the highest sp is around £3. Some info doesn't take in to account the verizon share swap +other things. We all know vod has been a bad investment, but please don't give fake info.
danielh. You are correct that I'm not keen on Vodafone. That is 'currently' not keen however. There is nothing wrong with biding one's time for what I judge to be a good point to pile in though,in an attempt to clean up. That is what this investing malarkey's all about imv so I won't become emotionally attached to any company. Vod plc was amost £6 each once and now they're almost £1 each. Why can't they halve from here to 50p given the dire state of the balance sheet?
From such a low point it may eventually prove to be a 5 bagger with the right guidance.
bubbles. How do you know vod can't compete in Africa? Are you an expert on Africa? Just because vod has failed in India doesn't mean it will fail in Africa. It is risky of course, but vod has to take risks to survive. bubbles, why don't you do some research on vod in Africa before criticising them? In the meanwhile bubbles I suggest you invest elsewhere because you are clearly not keen on vod.
Invest in growth abroad,excellent. We're talking Africa here/ third world nations. If they couldn't turn a profit in India, since people they merely choose the cheapest provider, how on Earth can Vodafone compete in Africa?
For me ,I'll keep my powder dry until there's a radical shake up of the balance sheet and re-structuring and improvement in prospects.
Why is it the doom merchants can never make a coherent case and always resort to making stuff up...
"Debt rising"....no it's not. Borrowings down, other non-current liabilities down, total liabilities down.
How can they continue paying dividends by adding to the already burdensome debt pile? By generating money....which they do...lots of.
Your analysis seems to be "has some debt" and "is looking at growth opportunities abroad" so it's therefore rubbish and you can't invest.
Simplistic and contrived nonsense imo.
With respect though danielh, Having a huge debt pile also de-values the shares. And with the debt increasing and interest rates predicted to increase also, it's a recipe for disaster imo. Something will have to give. How can they continue paying dividends by adding to the already burdensome debt pile? I feel there's every chance that the debt bonds could be reduced to 'Junk status' by the rating agencies .
When I hear the BOD waxing lyrical about so-called opportunities in Africa no less, it causes me to be very circumspect about investing. They already pulled the plug on India with egg on their faces! Africa for God's sake! It simply smacks of desperation!
I hope the BOD belatedly come to their collective senses and sort out the confounded mess they've created whilst enjoying their fat-cat salaries and bonuses.
Until such time, I won't be investing!
bubbles. No company that pays a 7% divi would have a rights issue. It would be crazy & unheard of. If vod was that desperate for funds it would simple cancel its divi. As for vod going into liquidation? were did you get that idea from. Sorry mate, but I don't think you understand rights issues. Vod is trying to prevent dilution of share value by buying back shares. A rights issue would have the exact opposite effect by issuing extra shares.
Daniel. A 2 for 1 rights at 70p would roughly equate to 3 shares for 250ish pence(110+70+70). So 250÷3=83pence average. I think that would be preferable than vodafone going into liquidation. I would possibly be interested in jumping on board if such a rights issue occured but would await a further decline in ex rights SP to approximately a 60p level as I feel the risk/reward profile would be quite reasonable then. If the future 5G rollout goes well, they could potentially prove to be very lucrative so I'm keeping vodafone on my watch list for the possible development of such a scenario.
Alternatively, the dividend level seems a bit shaky to say the least.Another slashing of the dividend or suspension of it would inevitably be the catalyst for another collapse in the SP thereby offering another opportunity to buy cheaply imv. Existing shareholders too would likely average down in order to reap the benefit of any future successful rollout of 5G IMO. Good luck to all regardless of your current position in VOD.
bubbles. A rights issue would obviously cause the sp to fall even more, is that what you want?
Looks like the usual afternoon drop is kicking in - i feel a finish below £1.10 which could push it even further down towards the £1 - it seems they wont be happy until we get down there
The debt mountain could be solved easily . A two for one Rights issue at perhaps 70pence per new share would certainly strengthen the balance sheet enormously. Or maybe a one for one and still retain some debt albeit a more sustainable level. Either way, with talk of interest rates likely to begin an upward trend soon, some pragmatic decisions need to be implemented before it's too late i feel.
I dont think it helped at last results when Nick Read came out and said he intended making more investments - when everybody was saying the debt is too big as it is . He doesnt seem to care what the markets are telling him !
So what's holding this down, is it just more sellers than buyers, or is there something else going on in here
Danielh - i really hope so as i feel if we go below that again we could be heading further down . I am sorry if i sound so negative but 3 years of this is enough to make anybody depressed .
Mikey, yeah, a bit of a dead cat bounce that one. I just hope we can at least stay above 1.10.
Oh dear Daniel
Seems I was right !!!! This is going nowhere - any chance it moves up they bring it straight back down .
Wrong again, Time to rise.
3pm - time to fall - sub £1.11 finish ?
Not really, US is doing fine
AT&T (T) – AT&T rose 1.5% in premarket trading, after the company beat estimates by 9 cents with an adjusted quarterly profit of 87 cents per share. Revenue also came in above analyst forecasts, with AT&T seeing growth in demand for its phone and internet services as well as HBO and HBO Max.
Hovering around £1.11 - no doubt we will soon drop well below with America opening .
You do have to laugh at the way it claws itself back and then the usual drop happens - the markets have no intention of letting this rise !!!!!!
Thank god i took a screen shot at close yesterday - at least i have proof that it did actually finish up one day in 2021 .
No doubt we will lose those gains over the next couple of days .