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Keep averaging down and it keeps dropping. I good day in a few weeks yesterday and again on the fall
Any thoughts on why it cant gain support
the only way is up now
Perhaps it is being shorted by The Great White Goldfish?
At some point the piper must be paid. You can’t take on 70bn of debt while paying out billions in div and buyback and accumulating 120bn of losses without matters catching up with you eventually. The market is being understandably cautious around VOD and it’s leveraged position as rising rates may come into play.
Enjoy the div, but I don’t think it is financially prudent to be paying it, and perhaps the market thinks so too.
Just to update, it went down today as the whole world did as US inflation came in higher than forecast. More FED rate rising, stronger dollar, higher commodity prices for non-dollar domains, more imported inflation for non-dollar domains, more rate rising for other central banks, potentially higher loans charges and higher bond coupons for borrowers. The first bond refinance for VOD is at the end of September which will probably see a higher coupon, unless they pay it off.
Short term there is not alot to be positive about. Will take a while for it to all wash through.
I think we are ok!
https://investors.vodafone.com/debt-investors/financing-strategy
Hello mole. At the end of the day it is all down to deb't & can vod afford it. If vod pays more % interest on its debt, than it can make on it's capital, then it has a problem, but vice versa it can be good. Only time can tell, but if the latter is true, then vod could be a very good investment. I don't know what average % vod pays on it's debt, so unless you know, & can compare it to what return it gets,then you know nothing more than I do. What average % interest do you think vod pays on its bonds? Unless you can answer that, how can you make a judgement, as you, often do?
Hi Dan.
As at FY22
Bonds €48,031bn
Bond financing costs €1,546bn
Average rate 3.2%
US 10yr has jumped to 3.4%. A buyer of BBB bonds is going to want much more than that to warrant the risk compared to just buying a 10yr.
Some bonds are linked to libor+ so will be going up with interest rates now.
Total borrowings €70,092bn
Dan, not saying this won't continue to pay dividends and get back up there to the 140s, it may well do and may even Suprise us and do better, but a company with massive debt that struggles to afford to pay dividends, that should not be ignored, and definitely not a share you should invest a large part of your money in, but I'm sure you know this, so who is right mole or cheap shares, maybe both maybe neither, but do you really want to take the risk of pumping everything into this one share with a dividend that's not covered, your money of course, but just saying mate
any idea how much buyback is left?
thanks
interest rates are going up but so are prices/ inflation. VOD got a good handle on costs imho
https://www.theguardian.com/business/2022/sep/07/uks-broadband-firms-set-for-17bn-windfall-with-above-inflation-price-rises
Thanks mole & robleo. Things are looking very dodgy. I think for me to sell now though would be foolish, so I guess I will do an impression of fleccy & hope the divi's just keep rolling in. The divi return on vod at the moment is not far short of some annuities, & with annuities of course you lose all your capital. Wish me luck, because I sure need it? Cheers.
meh x 3. Google, vod M.C.B. programme, & on the ADVFN site it states it will finish no later than 15/11/22. I suspect however vod will commence another M.C.B. prog' so the buy back will probably start up all over again. It might seem crazy, but as I have before it depends if vod can make more profit on the money it owes that the interest it pays on it. Mole would probably say it cant. Me, I don't know. I am not sure what fleccy thinks? & Mikey of course would just say sack Nick Read, but make sure you take a screen shot 1st!
Dan, at least you haven't lost your sense of humour mate, all i would say is be cautious here for a while, as another poster would say, events can change everything it may all turn out good -:)
Thanks rob. I have to laugh, but I wont buy any more vod shares , I promise? I think I may be a vod share aholic. Incurable apparently. I could try V.A. Vodaholic anonymous?
Dan, of course you have to laugh, i know your taking the mickey, if only we could see into the future though, but don't worry i have ordered more ladders, was fed up of being outnumbered by the snakes, so will soon be climbing again
Rob. My crystal ball can see many ladders, the only snakes I can see, are with the mole's??
hopefully a better day tomorrow, had a full red screen today
Best of luck