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You're correct companies pay Corporation Tax on profits before dividends are distributed, so paying a dividend doesn't affect the corporation tax bill. Interest earned as a result of banking the €4 Billion would be recorded as a profit, so taxable, whereas any savings in Dividend payout's due to the buybacks would be realised after Tax. There are other considerations, for example €4 Billion in the bank would reduce the Net Debt figure, and any interest earned deducts from the interest paid on the debt. Buybacks are probably an easier and safer bet, but I have no idea how one vs the other would play out financially, It's swings and roundabouts as far as I can tell. If there are any accountants on here, maybe they could educate us?
Fleecy, yesterday you compared the “annual dividend savings” made possible by the buyback with the amount of money that Vodafone could earn if it banked 4Billion. While the comparison is purely theoretical, the figures are interesting.
In my opinion the two figures are not directly comparable, because one is after tax, the other one is before tax.
The annual dividend savings (€218,414,635) are after tax, because dividends are paid out of net earnings.
On the other side, I suppose that the amount that Vodafone could earn if it banked the 4B (€240,000,000) is before tax.
This might have some relevance.
https://www.youtube.com/watch?v=4V90AmXnguw
Any other thoughts?
Thanks for sharing thriller.
I was thinking of investing here for the dividend, but not now with the cut in dividend. i think I'll stick with Iag.
Shal1000 I concur, when insider is buying it is one of the good signs in my book. Share buyback is another, although dividend cut is a bad one..
In terms of CFO I don't think he is worrying right now, short term price moves are bound to happen. In my opinion CFO estimates that the price is somewhere near its bottom where it is going to stay or move up from.
I knows Somme off you is currious abowt where I is innvested, well, I is in ABRDN at the momment.
That do seam cheep too me.
Dyor obviously
Don't put of a ruby doo
This share is completely unloved with Citigroup dropping their price expectation by 10p to a measley 68p! But the CFO just bought big with absolutely no positive market reaction and I bet you the CFO is better placed than Citigroup to make a judgement on future value here. The market clearly has it in for VOD and TBH unless we get better news on the 3 merger I can't see a quick route out of this hole. It's all very disappointing and costly!
I had the feeling this wont the gains after the italy news. Back in again…loving the volatility here
I has herd one off the bosses have bean buyin shares.
Remmember, Fred Goodlose of RBS was possittiv the hole way downe.
A lotte of theese kind off peeple is i d iots...
As inflation has dropped and telecoms always puts up price in relation to inflation (which should be abolished) this represents lower future revenues than previously expected. Lets face it telecoms sector cant really say their operating cost goes up by inflation + 3%, so when they bump up the prices its mostly extra profit which is cheeky and Ofcom should step in. I bet if there was deflation they not gonna cut down on my phone bill
"Are you saying that he's not worrying about the ongoing share price drop and the impact on the large trade he made?
Come on! This is a serious bit of post tax dosh to invest, he'll be hitting refresh every 5 minutes! Probably joined on here as well waiting for some good news articles :-)."
If he is hitting refresh every five minutes I'll be worried that he isn't doing his job properly and no wonder the share price is going down lol. He has far more important things to do than just constantly looking at the share price.
And he will be the first person to know what good news articles will be coming out as he will be one the key people delivering the news. BASICALLY HE IS THE NEWS LOL!
If things haven't improved by the next results day, then he may be worried, he will just chill!
Just topped up and average is down to 84.5p!
Does it depend upon the market accurately assessing the value of a company via the valuation of it's shares? Isn't the idea of the buy backs that a company with fcf and the view that it's shares are currently undervalued, can buy those shares back (with SH approval) thus taking advantage of what they hope is a short/medium term misalignment between true value of a company and Market capital? After that, only time will tell if the management were right or wrong, but if they were right to do it and the SP revalues to the upside, then buying the shares back benefits the remaining SH's?
Are you saying that he's not worrying about the ongoing share price drop and the impact on the large trade he made?
Come on! This is a serious bit of post tax dosh to invest, he'll be hitting refresh every 5 minutes! Probably joined on here as well waiting for some good news articles :-).
His purchase of £1.5m represents 0.0085% of the market cap, so its not going to move the price massively. However an individual who has invested a big proportion of his own wealth and who is CFO and really knows what the company is worth is a big game changer for me and I might top up and average down my current break even of 89p as now I can see a brighter outcome within this calendar year. Allowing for dividends I have received over the years I am probably not as big loss as it looks on paper atm.
He believes the price will improve in the long term, trying to perfectly time the market is not easy so unless you are day trading is not as important.
I dont think he is watching the sp every 5 minutes like many here seem to do. Its not healthy.
If you cannot stomach a loss even if temporary, you should not be investing.
I wonder if Luka regrets his VOD purchase yet. Down 85k already and its not been a week, should have bought RR. :-)
Existing customers are usually treated less favourably
Prefer giffgaff myself, i pay £6 for 2gb data and unlimited calls/texts which is enough for me as i'm usually on WIFI, your not tied into any contract and uses o2 network so no roaming charges in Europe, excellent service
Let me give you some free advice, last year at about this time I wanted a sim only deal with Vod who were more expensive than anyone else. I got them to cut the cost, then in April they put the price up by that inflation busting number + 5% or whatever it was. So I signed a contract in March 2023 till 2025 only to find it lept up a month later .
DO NOT sign a new contract in March, wait for the new Financial year and get a deal then
Today I tried to re new 3 phone contracts,with Vodafone sim only
Been with them for years !
I wanted 50 gb data unlimited calls and messages,3 contracts
Online Vodafone offer 30gb for £8 per month per contract on uswitch
Many other providers on same site are around for £50gb data £10 per month .
Because I was not a new customer for 50gb it was £21 and Vodafone would not price match .
I am expecting a call in the morning from a manager who may be able to offer me a discount.
Incredibly poor customer service for existing customers.
I will keep you updated.
Seems like they don’t want the business and are happy for me to leave .
Https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.ii.co.uk/analysis-commentary/stockwatch-it-time-buy-vodafone-shares-ii531117&ved=2ahUKEwi1p-Su-oCFAxX1VEEAHVU4Af8Q0PADKAB6BAgnEAE&usg=AOvVaw2tJ-E0v6QRsUVXQmARhq3k
More should be made of the recent CFO's purchase. It is very odd that the market completely ignored its significance.