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Under 65 today me thinks
That bad feeling was correct again lol
LTI, I was suggesting buying back more than €2.48 Billion worth of stock a year. They have around €6 Billion of debt maturing by the end of 2025 that needs consideration and currently have €7 Billion in cash and another €4 Billion coming from the Spain sale. Without knowing what Capex plans are in the pipeline, Vodafone could probably afford to buy back €3.5 Billion worth of stock a year if they suspended the dividend for a couple of years.
Once rates are being cut the share price will sky rocket
Avi why you defending such a terrible company?
Are you MDV
Vod goes down in all market conditions
Fact
Gutter, why do you have a "bad" feeling when you actually want the sp to fall? Why the pretence?
So very roughly with a cancelled dividend -
year 1 buybacks - £ 2 Billion budget equal to X amount per share in issue at start of buyback.
subsequent years buyback budget would be X multiplied by shares in issue.
Then £2 Billion minus the buyback budget used for debt reduction.
Flec
''Since Vodafone shares are so cheap it makes perfect sense to suspend the dividend completely, and plough every spare penny into debt reduction and share buybacks''
I would have thought that if the dividend was scrapped, then the whole amount in a subsequent year 1 should be all put towards buybacks as they are at a higher percentage saving than that of the debt interest.
I have mentioned this before - also for improved sentiment reasons , the following years of buybacks could have the same amount of money allocated on an outstanding 'per share count' basis with the difference in budget from the previous year put towards debt reductions.
This could continue at least until the share price is at double the current price.
I have also already said that i would be happy with a continuation of the current level of dividend or any other split ratio between dividend and share repurchase cancellations.
Not got a goode fealing at all, culd be like Monday...
Jax. Is this a competion between you & gutter to see who is the biggist moron on here, are you both suffering from a mental problem? Stop talking garbish. The vod sp may fall? Or it may rise? Just get your brain in gear please.
Even when fleccy filters you, you just can't leave him alone. You are a sad pathetic idiot, You clearly have a serious mental problem. Just get a life, you sad pathetic moron. Go back to the gutter with the rats where you belong.
Should have happened months ago with the price dropping to around these levels
Now when the cut is announced imminently the price will be in the 4s
And tomorrow
Advocat, the big drope were yesterrday, doh
The average down brigade are on day release
Fleeces, such a silly man, a companie with big debt should not be bying back it's shares.
Their, I has seyd sometthing sensesibal.
is this the big drop that jax and gutter****e predicted for today?
their posts are just drivel as is clear for everyone to see.
I'm not a fan of buybacks and I've occasionally argued against them in the case of Lloyds, but in Vodafone's case I believe it's crying out for buybacks. Two things basically plague Vodafone's share price, they are the debt and the cost of the dividends; With over 27 Billion shares in circulation, and over 1 Billion in treasury, they should look at reducing the total number of shares which would make future annual dividend payouts more affordable. BT has less than 10 Billion shares in issue and has a far more affordable dividend payout of around £751 Million a year, compared to Vodafone's yearly payout of €2.48 Billion. Over 4 years BT will only payout dividends of just over £3 Billion, whereas Vodafone will payout around £8.5 Billion over the same period; Since Vodafone shares are so cheap it makes perfect sense to suspend the dividend completely, and plough every spare penny into debt reduction and share buybacks. If they suspended the dividend, it could be reintroduced when it's more affordable and the share price has recovered. Since Vodafone could buyback 10 Billion shares, for around £7 Billion, at the current share price, and knock around €1 Billion off the annual dividend payout when it's reinstated, it's a no brainer in my opinion.
Cont' I were you!
Garrone. You really don't get how vod A.D.S. on the nasdaq works, & athough it has been explained on here many times, I don't think you ever will, so I would give up if
And lo and behold Jax is wrong 99% of the time
I guess from Vodafone perspective it makes sense. assuming the gearing % gets better or at least the same, eg some of the funds are used to paydown some of the debt in proportion.
As A. it makes the dividend more affordable in comparison to Earnings cover
B. if they don't then the cost of capital would increase, as debt is cheaper than equity and without buying back some of that equity it would become a bigger % of the WACC number and as such make it harder to generate returns in excess of the cost of capital
The problem isnt the debt as such .... the problem is that they are not getting enough revenue and return from the use of that debt ..hence selling non performing assets and probably removing the debt tied to those non preforming assets
..with the idea of leaving quality assets achieving good/above average returns
I wouldn't get too preoccupied about any buy backs.... it is an Option , nothing more
" Nothing is decided."