The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Today looking at the futures
Fantastic dividend if they keep paying it?
I’ve been in and out of voda for a couple of years now and watched the SP closely.
Bought in again last Friday and on reading yesterday’s RNS, thought I’d luckily timed it perfectly.
Was disappointed with yesterday’s price action but have noticed this is quite common and the real effects can take days to show.
The deal with Microsoft makes sense and proves the business is thinking ahead.
Law2
I think you will find that APPLE shareholders have done very well out of share buybacks over the years as a way of return, as have shareholders of many other companies .
Law2
''In my many years investing, buy backs have never had their intended effect. Been involved in many blue chip companies who’ve engaged in several buy backs and they have never increased the sp as intended.''
You are misguided - they always do as intended, which is to reduce share capital.
Buybacks for cancellation would increase the relative value of each remaining share to what it would have been without the BB and cancellation. However the market determines the value of a business on a daily basis.
Avocet. Are you saying that jax wears a dress, with the the same dress every day, or did you mean dross?
Nice to see Satya Nadella turning up in person to sign the deal over the line, shows this is an important deal for MS
Jax, that is why you should sell up asap and move on to pastures new. It's a waste of your time, and ours, to keep posting the same dress day in and day out, as you do.
If VOD goes down over 5 years, reinvesting your divs in it will compound losses. Divs are not a guaranteed win.
How much you can buy is not linked to the SP. Because you can buy more shares with your £500 than a stock priced at 500p, you have still invested £500.
Maths is hard.
Vod pays that each month on its mammoth debt pile
In the AI world it won’t even touch the sides.
"Yep 150m may as well be zero" What a ridiculous comment.
“At 67p each, I can buy lots of Vodafone shares without spending too much. What’s more, the mobile telecommunications company has one of the highest dividend yields on the FTSE 100, at 11.5%.
Today (16 January), Vodafone and Microsoft signed a 10-year partnership for the provision of AI and cloud services to 300m clients. The $1.5bn deal will improve Vodafone’s customer services while providing Microsoft exposure to the company’s IoT and financial services. With its share price down 28% over the past year, I believe this deal is just what Vodafone needs to turn its fortunes around.
By my calculations, if I buy 5,000 Vodafone shares today and reinvest my dividends, I could accrue £2,840 of profit over five years.”
How is investing £1.5bn in AI a small sum, it definitely isn’t a small amount!
Nice to see that VOD have committed to the M'soft deal for ten years, this must give some confidence to the market (but not the zero IQ Muppet that is Jax, who by the way does not hold VOD shares)
Yep 150m may as well be zero
SP reacted accordingly imo
Seems to really be an announcement of VOD moving to azure and using Microsoft’s generative AI tools. 150m a year is nothing invested into AI space.
If you like it, buy Microsoft stock.
Buy backs work well for the company as they get to buy back more of their company with not much complaining from share holders and they save all that money when it’s dividend time.
Stupmy
For now ....it will help securing this before the next Quarter Results in February with the CEO having to face the analysts. At least it is a signed agreement and signs the BOD are making decisions and pushing on with forward strategy.
A separate company by April shows they have been working on it behind the scenes for a while and the signing and RNS are merely communicating work that has been done
It appears everything is all set to go and progress from here on and of course they have a big market volume of customers
In my many years investing, buy backs have never had their intended effect. Been involved in many blue chip companies who’ve engaged in several buy backs and they have never increased the sp as intended.
I didn't mean to belittle it by saying 'idea', it's clearly part of a strategy that aims to improve Voda's competitive position and bottom line. My point remains however, that until we see results, we don't know if it will deliver enough in the right time frame.
Clearly this is well past the 'idea' stage. Proof of Concept, prototyping etc will have already been done.
Https://www.lightreading.com/finance/is-vodafone-looking-to-exit-australia-s-tpg-telecom-
"Microsoft also intends to invest in Vodafone's managed IoT connectivity platform, which will become a separate, standalone business by April 2024."
That sounds fast, but it is good news at it will have its own budgets and balance sheet and show a view of its valuation.
But I get the distinct feeling it’s delaying the inevitable decline to the 5s by a day or two
Vod would be over1% down today without this news