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I think people miss the point about carrying debt.
When inflation is high say 10% the debt companies carry becomes less year on year. Its like having mortgage payments that seem high when you buy a house & yet 25 years later the amount you are paying would probably only buy a mars bar.
Inflating the debt away only works if your income increases at a similar rate to inflation, otherwise the debt remains broadly the same in real terms.
Vodafones income has increased by less than 5% in five years - therein lies the problem.
Correct Noveck & with the company also saying income / profits aren’t going to increase in the years ahead (code for declining) isn’t it any wonder the SP is tanking.
This is another reason so many employees are being lost, the company needs to save cash.
It’s a total mess brought on by inept directors who remain feeding at the trough.
The charges are linked to inflation as per contracts and as of April a uk bill will be 14% higher and will go up abroad also. This increase in revenue and cuts to the workforce should show encouragement in the next set of figures imo.
If only it was that easy, you can only increase revenue by more than your competitors if you can offer something more or better. Vodafone does neither so it will lose more customers and offset most of any increase in tariffs. The debt costs more to service too..
Here's an example of how (5h1)t they are. 17 months to get a broadband contract cancelled and refunded and I'm sat here toggling off of my iPhone as they also cancelled another contract that they shouldn't have. Hours every month and it comes to this. Avoid them avoid the shares, it will continue to decline until they can take their responsibilities seriously..!!!
Any rise just gets beaten down
And look at BT motoring along nicely
The debt is just a big anchor now that is forcing them to do things the market clearly does not like.
Selling prime assets and shrinking market share with a JV that only exists as they can’t make necessary investments on their own, due to too much debt already.
Not really, on their own they can't get to a decent Return on Capital. but as part of a merger that Return on Capital would be better, EG its not x2 investment but broadly speaking its x2 Earnings, so the ROCE becomes materially better than the cost of capital.
Why was Mr. Reed fired?
Get out and fast, did tell you despite the muppets on here constant abuse….. The markets are going to tank over the summer, the only positions I now have are three short ( puts ) positions. Liquidity will drain from the markets, as the US floods market with T Bills post debt agreement, core inflation up everywhere is a disaster and rates will keep rising as they can’t allow core to get out of control, markets could tank 20 pc plus with emphasis on plus, get into cash, will be able to buy in the autumn bargains everywhere, the blow off top in a handful of tech names the poster child of the market rolling over. As for Vod, the business model is in terminal decline and monster debt, there is nothing to salvage. It was curtains for this shxt 5 years ago. You just sell it and avoid U.K. dividend stocks, they are capital destructive rubbish.
I have given up trying to time the market, a long time ago.
I drip feed constantly and I never sell. When a stock tanks like VOD has, I stop drip feeding until I see a sustained improvement, but I never sell.
Seen a lot of post mentioning the monster debt VOD carries. Everyone realizes that the debt has reduced a lot, even if its still big, its a lot better than it was when the sp was a lot higher.
Is that a 20% prediction a drop from today’s prices? Vod has already dropped that in the last month.
Think this tank heavily this afternoon
Maybe a trading halt for this pos
This share is held in every major pension fund in the uk and generates consistent revenue. I wouldn’t panic too much.
Great kick a man when he’s down
My pension savings taking a hit as well then
People said the same when rolls royce hit 67p and now look at it. Buy low sell high
Market has no faith in management. Freefall.
I said minimum 2% today
Can they fire MDV and find someone else?
Is that pre ex div date Terry or months in the future?
And straight back out again. Back at 60p
Grantsnapps. "Why was Mr Read fired?" Because that's what investors call for when they havn't got a clue, Just sack the C.E.O. It didn't work though did it. The problems, & answers are far more complex, so just sacking this C.E.O. wont work either.