Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
In theory vod share buy backs should not make any differance to the share price in the short term. The gain is, each share owns a higher proportion of vod as there will be less shares in circulation, but this is cancelled out by the cost of buying those shares. Buy backs are an alterative to paying off debt. Mole would argue paying off debt or reducing the divi as better, the vod management prefer to buy back which I agree with. It depends whether the vod sp increases after the buy back or not. If increase then the buy back is good. If the share price is 70p, it is no more likely to increase than if it is £1. Of course it be better to buy vod at 70p if we knew the shares were worth & could realise an sp of £1, but we don't know. If we did ,we would all mortgage our houses & use our life savings to buy vod at 70p today.
Dan
''but this is cancelled out by the cost of buying those shares.''
nonsense - the value is transferred to the remaining shares.
''It depends whether the vod sp increases after the buy back or not. ''
what is all this 'after the buyback' ?
each days purchases has an effect, even if unnoticeable day to day.
''if we knew the shares were worth & could realise an sp of £1, but we don't know''
the market says they are worth 70p per hare - it is up to the individual investor whether they agree with that or not.
L.T.I. As you say, the value is transferred to the remaining shares, so vod spends 4billion which is transferred to the ramaining shares so ends up level. You don't get it do you?
Share Buybacks increase the Earnings Per Share and where dividends are paid it reduces the dividend bill. Theoretically the market analysts should look favourably on a higher EPS, which should feed through to an increase in the share price, but market valuations are currently driven by narrative and momentum, not fundamentals. As an example Lloyds was 41.19p on the 13th Feb and is currently 53.96p, an increase of 31% in 2 months; Lloyds share price increase isn't being driven by share buybacks, it's being driven by a narrative change around the banking sector and momentum.
The analyst community have been bashing Telecom sector stocks for a long time, at some point the narrative should change and the prices should benefit from the same momentum phenomena that's benefited other stocks and sectors.
FTSE Blue chips shouldn't move 30% in a few months on the back of nothing, it highlights how the market players/gamers can move stock/sector prices just because they decide to.
Dan
''You don't get it do you?''
I think it is you - if same valuation - fewer shares = increase in price per share
You would like to think the Bod ,Know their onions and the buy back is beneficial to holders.
GLA
The two recent director purchases as shown below, at least show that some people in the know are fairly confident, a good sign I think.
I wonder if daniel's impending ISA purchase on Monday will show up on the list, Robleo & I have long suspected that dan is a VOD director, ha!
27 Mar 24 - Buy - Van Boxmeer @ 69p - Shares brought - 823,500
18 Mar 24 - Buy - Luka Mucic @ 69.64p - Shares brought - 2,460,000
Gary, nice to see a bit of humour back here, hopefully the may results may cheer everyone up, it all depends what you want from this, if the share price stays down low then i expect the buybacks would be beneficial to long term holders, i can only speak for myself, personally i would like the share price to rise above my last top up of 86p as soon as possible, then i would have choices hold or sell depending on how i felt about it at the time, each to his own as they say
Gary.. I wish I was, but as you say the director buys have to be a good sign.
Dan
''as you say the director buys have to be a good sign.''
must be confusing for you, when you think that the market value of Vodafone is going to fall by 4 Billion .
I imagine that directors do not wish to throw money down the drain.
All eyes on MAY 14th .
By the way Gary, as the I.S.A. limit is £20K to £25K you won't see me on the list. But Please wish me luck with my modest purchase? Have a good week, & let's keep it freindly. Cheers mate. Rob, 86p will do me for the time being,as long it doesn't mean you will sell & stop posting on here, we all need your calming influence!
Thank goodness a bit of civility......
Sotonspike. Welcome back, where have you been? I might get the hump on Monday though if the sp plummets, so be warned! Happy Mondays!
Dan it gets tiresome reading the rubbish spouted on here ...At least Utter Tribe has a sense of humour....
I realise sotonspike sounds like guttersnipe, but although he can be funny?! We should not encourage him/her/it. (by his own confession). Cheers mate. I am still waiting for that drink you offered me a long time ago? I turned at that pub you said, but you were not there!
Sotonspike. "Thank goodness for a bit of civility" I think it is catching on" Even L.S.I. is joining in? Anybody else who wants to join in & be civil? Sorry, no offence meant. Happy Monday.
Sorry that should read Utter Tripe.....