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Unfortunately i can see it getting close to 90p with ex div so ill say 91p
Mikey
Unfortunately i can see it getting close to 90p with ex div so ill say 91p
Did you know the dividend cover is 0.73?
Which is negative- meaning Voda are shelling out more than they’re earning.
Which is why their debt has ballooned to €45.5 billion.
I really can’t see too much value in Voda. They’re running the company like Truss & Kwasi ran the country. I see a dividend cut as inevitable- a probable rights issue - and a future shareprice of 50p
At its highest Vodafone had a market capital value of £228 billion compared with about £25 billion now.
And I can’t see anything to suggest that trend reversing.
I will go for 103p.
Generally, vantage, hungary, egypt and perhaps 3UK deal underpinning H2.
Tough week last week, but it was also a witching week (3rd Friday) Onward and upward
"I really can’t see too much value in Voda. They’re running the company like Truss & Kwasi ran the country. I see a dividend cut as inevitable- a probable rights issue - and a future shareprice of 50p"
Toff, obviously you know more about Vodafone's financial position than the CEO Nick Read, who is a qualified accountant. Clearly your post is worded to put the frighteners on unsure prospective buyers and nervous holders. Vodafone have had numerous opportunities to drop the dividend to zero, but haven't, personally I'd live with a dividend cut if it was deemed necessary. In the case of a rights issue, I don't see that as Vodafone appear to be raising capital through spinning off assets into partnerships, like Vantage, and selling other assets like Hungary.
If Vodafone decided to drop the dividend, it would save them just over €2.473638 Billion per year. Toff, rather than speculating on here maybe you should email Margherita Della Valle, or Nick Read, and ask them why they don't deem it necessary to drop the divi.
Fleecy - I have been reading Toff's posts on various boards for a long time & he / she is certainly a person worth paying attention to.
It is 100% correct to say that VOD are borrowing money to pay the next dividend & as it is a gimme that the profits will be hit by the worldwide recession it is correct to say that the dividend is in danger. These opinions are not scaremongering they are wholly relevant & in my judgement accurate.
I followed Toffs posts and he has a knack of showing up at the bottom just before a SP rockets. I remember him calling £10 on IMB and its now £20! I hope his appearance here heralds a recovery in the SP.
The div, ex div 24 Nov, is easily covered by discretionary free cash. Earnings per share are growing. Lots of asset/ portfolio proceeds to smooth out the glide path for sustainability. No near term liquidity issues. Price rises easily operationalised in 6 european markets next year underpinned by cost management initiatives. Expanding in African markets using the partner markets model takes full advantage of the brand, values c€20Bn.
Net Assets c€57Bn at last statutory accounts is the lower of cost and net realisable value at 31 March. All the recent valuation work seems to underpin that. Think the market has the problem eg like mesh says, margin calls. VOD has no problem funding cheap debt imo
Toff. You say you can see a divi cut, a rights issue & an sp of 50p. Are predicting all three? Who would take up a rights issue if the sp is likely to fall to 50p? Sorry mate, but I can make very little sense of your post, apart from wild exaggeration. You make Mikey in comparison, sound like ramper of the year?!
"Fleecy - I have been reading Toff's posts on various boards for a long time & he / she is certainly a person worth paying attention to."
Gary, the fact you called me Fleecy instead of Fleccy tells me you don't pay attention to detail. Vodafone have been in debt since they were formed. They could have completely wiped out the debt with the sale of their stake in Verizon Wireless but chose not to. I have no idea why Telecom companies maintain debt on their books, as they could reduce it over time should they wish. I know BT recently used the debt as a poison pill when it was speculated Drahi was making a move, maybe it has something to do with that.
I suspect Vodafone will look at reducing debt going forward, as the market has issue with it, not because they need to.
Now come on fleecy, stop splitting hairs,we all make typos. Stick to your point please, which you normally make very well in my opinion. Have a good day.
"Now come on fleecy, stop splitting hairs,we all make typos. Stick to your point please, which you normally make very well in my opinion. Have a good day."
Toff makes a point of calling me Fleecy, most recently on the BT chat page. I'm afraid it's guilt by association for Gary; Defending Toff while calling me Fleecy demanded a response. no hair splitting on my part.