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SP increase??? What am I saying, no sooner than it jumps up it falls back again! ??
Although the soon to be sold retail business lost money the wholesale activities turned in £128 million profit. Given the SP increase this morning I am beginning to think the company has turned a corner now. Dividend is still good too even after the announced reduction.
Plus in 2014 we shareholders received approximately 102 pence as a special cash and share dividend resulting from the Verizon sale. Anyone holding these share for past twenty years is quids in, particularly when you consider the generous dividends too.
https://news.sky.com/story/ovo-energy-lines-up-audacious-sse-retail-deal-11782034
Now that Liberty are flush with cash I wonder if they will seek to buy O2 from Teléfonica. The deal to buy O2 by Li Ka-shing (Three) for £10.7 billion was thwarted by UK regulators last year but there would be no such competition worries for Liberty. It would result in a dominant new ‘all services’ player in the UK that wouldn’t help Vodafone’s UK operations. Unfortunately Telefónica have cancelled their London listing now otherwise I would have a punt on its SP rising should such a sale occur. Am pretty fed up with VOD but am stuck with them for the long term (200p+) and want to diversify my telco interests now.
The SP has been hammered by two things this year, firstly the failed deserter of the Retail Arm and secondly the Labour Party announcement that it intends to nationalise SSE and other energy utilities. We await news of an alternative route for offloading Retail and hopefully Corbyn and his cronies will never see Office. As I understand it the dividend cut was dependant on offloading the Retail Arm and even if that happened there would then have been a compensating dividend from the new Retail company. I don’t now expect to see the dividend cut next year as there is insufficient time to offload retail in FY 2020/2021.
This is Money suggests divi cut to be announced tomorrow and will be more than 30%. Also says that 70% of investors polled agree to a cut.
https://www.thisismoney.co.uk/money/investing/article-7018719/STOCK-WATCH-Vodafone-set-call-time-3-4bn-dividend.html
OK, but maybe we are not comparing ‘eggs with eggs’ here. Not sure if the Inmarsat divi cut was preceded with a circa 33% sp drop.
PS Hope you consider my other reply as humorous, that’s how it was meant Longish but the smileys didn’t come through.
The latest three broker ratings predict an average SP of 223 pence. I suspect they will be proved correct, after all they have access to more detailed information about the company and are probably more skilled than most here in predicting such matters. The bit these brokers and analysts always leave out and what really annoys me is a timeline to say by when their predicted SP will be reached. It’s a bit like a weather forecaster saying it’s going to snow in the South East. Of course it will, but when???
Danielh, it’s the Doors actually. Lyrics nicely reflect VOD at the moment. ??
https://m.youtube.com/watch?v=Mgw5j9h8528
The poor performance reported this morning highlights how exposed SSE is to the vagaries of the Climate, this will become more so as following divestment of the Retail business. If SSE is to avoid repeated climate related performance shocks in the long term it will have to hook in to a new predictable energy generation capacity to augment gas generated electricity. To me, the adoption of Small Nuclear Reactors as being developed by a Rolls Royce led consortium is a good option although it’ll take ten years to achieve this. In the meantime I’m going to top-up on SSE shares and hope to offset the losses I have incurred by selling out when the SP hopefully recovers somewhat. Fingers crossed!
Vod's African operations are doing fine and the competition problems in India can be fixed with a merger with Idea but the UK is the black sheep of it's European operations and is experiencing the very same issues reported in the BT trading update last Friday. (The financial significance of the rest of Vod's global operations is limited.) It seems to me that Vod could fix it's UK problems and bolster its worldwide corporate operations by buying BT. This would obviously require it to divest its UK mobile operations but this could either be sold off (Liberty Global?) or floated. I am a long standing holder of Vod and the shares have really been 'treading water' since it sold off its cash cow (Verizon stake) a few years back and Vitoria Colao needs to do something big now. BT sp is currently depressed, Vod still has cash in hand and it's still cheap to borrow money right now.