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As they say buy when there is blood on the streets as with VOD today. Profits up and paying a 7% divi……..who ever thought you would pick this up below £1.
The divi hunters will be piling back in tomorrow.
Good luck one and all. .
Okay €45 billion, that's going to be a permanent anchor around the neck of the BOD...not sure what terms the debt is on but that's one he'll of a mortgage on the company, especially in today economic environment? I'll pass on this one I think...the dividend just isn't big enough to justify the ongoing debt risk imho. Good luck to those holding.
Even if Reed was sacked it is difficult to see what could be done now to change the company into a growing profit making entity. It's like a sub-model of the UK economy with its £2+ trillion debt, increasing benefit support demands and already maxed-out scope for tax income. The market doesn't like either.
95.69 for me this Friday, apologies for late entry.
Robina you must have read my mind as I was thinking the same thing comparing Vod's debt pile to the UK financial situation with the £2 trillion debt....Basically the previous BODs and UK Governments have run their debts all the way to the ceiling, this unfortunately hamstrings any successors room to manouver. Unlike the UK Hoverment than can raise additional taxes to pay down debt, VOD on not is the same position to do so, hence the €45 billion, debt is going to be a giant anchor dragging on the company for eternity it would appear? Aimho ADYOR. GLALTH's
The debt is killing this company, stop paying the dividends and share buy backs and pay thr debt down. Surely not rocket science
It would appear that the BOD don't actually care about the Debt pile so long as they're getting paid? Unfortunately that sounds like the UK governments as well....It's not a great place to be with a debt pile nearly at twice the valuation of the company, and what a huge pile it is!
moniman. Why do you insist on confusing market cap with enterprise value? Vodafone is worth (enterprise value) over 1.5 times it's debt. It is bad enough as it is, without you confusing matters even more.
Darkknightmy. Yet another one on here who can't be bothered to read up about the M.C.B. buy back program before posting on here. Surely not Rocket science?
Dan.....This BOD like the last BOD are all out of ideas and anywhere to go due to massive debt pile. This was a reasonably safe dividend play about 3 years ago when the price was over 200p and the debt ratio to valuation was much lower, but a rising debt pile, flat earnings, increasing costs is putting huge presuure on the divi it appears, hence why it was the divi was slashed 2 years back...it's going to be a very very very long slog here for what, a 7% dividend in a 10% inflation environment, with almost zero long term growth judging by todays results? Well that's the way it looks to most here and the market reaction today sums it up. AIMHO ADTOR !.GLA.
Thank you moniman. My last post to you was about your failure to know the difference between enterprise value & market cap (shame on you). nothing to do with the points you have just raised. Please pay attention next time??!! I think we all know by now that vod are having a torrid time, but where, from now? Selling part of the towers, is at least a start to get deb't down, but vod (Nick Read) has a very difficult job, & I don't think sacking him will be the answer. As I have said before, who will replace him. Someone with a magic wand perhaps, hopefully though somebody who at least knows the difference between enterprise value & market cap, & how the M.C.B. buyback works?
Hi Danielh Sorry can you explain the difference between Enterprise valve & Market Cap and M C B but back, New to investing and I am learning a lot on here, I have just brought in here @ 96p thinking it looked good now having second thoughts. Its only money and you can't take it with you.
Hi Danielh,
You keep repeating the same lines about Nick;
"(Nick Read) has a very difficult job"- wow he's the only CEO of a large company that has a difficult job ;-)
" I don't think sacking him will be the answer"- sacking him will bring back the confidence of big investors who have all criticized his failing strategies.
Nick has a sign on his door saying "it's ok to do mistakes". It's not ok though to keep doing f***** mistakes
Nick Read has received an annual compensation of £36.15 million in fiscal 2020-21 as compared with £35.29 million in the previous financial year while Vod has been in constant decline
Nick needs more people like you Dan
Dan, I've met many clever people over the years and your comments tell me that you don't fit into that category!!! All I can say is that the $45 billion debt pile has become unmanageable in my opinion. You can play with words or bury your head in the sand but the elephant in the room is the collosal debt mountain! Stagnant earnings, inflation, slowing economic growth in most of Vod's markets and debt concerns isn't good. If you think this is going back to 200p any time soon you are living in cloud cuckoo land. The only reason this isn't much lower is large institutional investors holding for the dividend, but this has been slashed from previous levels as stagnant earnings and the huge debt put never ending strain on the balance sheet it appears, hence the rapidly declining SP... Aimho Adyor, but good luck with your Vod strategy!
velladean. Thank's for your post. I will try to explain, but as I have done this before, sorry to repeat myself. Enterprise value is the value of a company, in the same way as you might value a house. If own a house that is worth £1 million, but it has a £65.000 mortgage. It's enterprise value is £1 million, 1.5 times it's mortgage deb't, but my overall investment (market cap) or equity,is £35,000. £1m minus £65k debt (mortgage), so my debt is almost twice the market cap. M.C.B.'s are more complex, They are mandatory, so vod have to buy the shares back. This is done though a buy back scheme buying back about 6 million shares a month through Goldman Sachs bank. These are then held in treasury by vodafone. These shares have no voting rites, pay no dividend, so are in effect cancelled. This is to stop the dilution of share value due to the issuing of shares to bond holders, which they have to do on the bond expiry dates. It is very complex, but I have explained it as best I can. Share options & incentive schemes to staff management are very different, but are designed as an incentive to those who work for the company to increase productivity & therefore reward them with a higher share price (hopefully) Of course management look after number one (as we all do ) but they do look after shareholders & the company they manage which is of course there job. Nick Read at the end of the day is just human, just done better than most? Perhaps he should go on I'm a celebrity to show his real self, like Matt Han****?
Well Dan that was a great explanation, but the markets aren't buying it, that why the SP chart shows a 5 year terminal decline from circa 230p in 2017 to 95p today..The dividend has been almost halved during that period hence the decline...I really don't see any way back for the SP or the Dividend, unless you have a cunning plan..if so maybe you should enlighten the BOD? Aimho Adyor! €45 billion debt pile is huge whatever way you decide to calculate the value of this company...GLA.
moniman What is your problem. I am simply pointing out that you don't know the difference between enterprise value & market cap. They are totally different. I haven't disagreed with anything else that you have said & am certainly not burying my head in the sand. Calm down mate.
I'm very calm...
https://www.lse.co.uk/ShareChart.asp?sharechart=VOD&share=Vodafone
Sorry moaningman but your time has run out. You will have pay for another argument, (as is in the famous monty python sketch).
What argument, I thought it was a robust adult discussion. Good luck with you Vod strategy...just watch the Debt mountain though!
NewSid. you say "Nick Read needs more people like me" Of course he does, what he doesn't need is people like you, who criticize without any answers or solutions. Do you really think that just sacking Nick Read is going to solve all the problems? What will the new C.E.O. do? If he fails, then you will be back on here again, saying sack him? Vod's problems are massive. Just open your eyes.
A lot of rubbish being talked here about debt. All successful companies carry huge debt, it is par for the course. I am more interested in profit, the future and a good dividend. All 3 of these points look good to me with a divi around 7%. The pensions institutions will be loading up here within the next 10 days. Short this at your peril.
So Moniman, short of selling even more assets to try and pay down its debts (the circle of death) what would be your solution? VOD operates in competitive markets and has limited scope to either increase prices and/or gain additional market share (without even further investment). Simply moving the chairs around on the Titanic wouldn't have saved it! It would seem that the only realistic soultion would be for VOD to now undertake a sizeable capital raise (at least £10bn) to try and break the back of its debt mountain (put simply, VOD returned too much capital to shareholders in the past and should have retained more to pay down its debt).