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Fleccy. Hello, I wonder you could help me here. Vod's market cap is it's share price times the shares in issue. My question is, if vod buys back shares in a buy back scheme, will this mean as there are less shares in issue after the buy back, the market cap will fall unless the share price rises. If the market cap doesn't fall then it would seem to me that a share buy back is a one way upward bet as each share holder will own a larger slice of the company. It seems to me that after a share buy back the market cap should fall, but because each share will own a larger share of the company then it will balance out. I am all for buy backs if the managment think that is good thing, but it is good to fully understand how it all works. Thank's a lot Fleccy if you can help me on this one. Cheers & have good one.
Share buy backs. If vod spend 4 billion euro's buying back shares, then of course 4 billion euro's comes off it's balance sheet (not rocket science is it?) But because there are less shares in circulation after cancelling the shares, each share will be worth about the same. This is basic stuff, so please can we move from this nonsense. L.T.I. please give us a break, because you have not a clue what you are talking about.
Rob. Up is good, down is bad. You can't argue with that. Well some on here can, but what can you say? It is alright for you though with big profits from international funds, . Have a good good weekend mate. Don't let your wife nag you into buying premium bonds?! Are you a man, or a mouse??!! Nice to see fleccy back, but I still can't understand what he is going on about. One day perhaps I will? Cheers fleccy. The only way is up. New tax year Monday. So time to buy into an I.S.A. if this year is full up. I am hoping for a big rise after Monday.
Beo. It might be time to give up on L.T.I. He has not got a clue what he is talking about. He thinks it is all ballack's, that says it all. Have a good week end mate. Bad finish today though. Shame about that, but I plan to top up on Monday.
L.T.I. If vod buys back 4 billion euro's of shares & cancel them, the market cap will reduce by 4 billion euro's. The 4 billion euro's comes out of the market cap. If you were right, all companies would be be buying their own shares back & we would all be miyanears Rodney. It doesn't work that I am afraid.
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.
I think most vod shareholders want the sp to rise as soon as possible, as rob says, a bird in the hand is worth 2 in the bush. If the sp stays low untiil after the share buy backs then vod gets them cheaper of course, but there is no guarantee the sp will rise after the share buybacks. It is a bit like having a bet on football team, then hoping the other team scores so you can have another bet at higher odds on your team. That would be crazy. Unless of course you have a crystal ball.
Rob. Yes it sounds like you have done far better than me with your balanced investment, so well done mate. The problem for me is that I guess I am chasing losses now which is not easy to bale out of at a loss & may even buy more. Some call it averaging down, but I think I will stick with it. Of course it it risky, but wish me luck. Where is Fleccy when you need him for inspiration? Even a lot of things in the pound shop are worth more than a pound now days, not vod though. I guess mikey got that one right (happy soul isn't he nowdays!?). Sorry if I am being an "aggresive bully, lording it" bla bla bla. As long as we don't all start talking gutter lingo that was all my point was, (completely wasted on mikey) Sorry to use you to make my point, no dissrespect to others on here, but with a few exceptions you seem to be only person on here who makes any sense. Have a great week mate/amigo.
Mikey.. I am not always right. I am often wrong, What part of that don't you get. Why do you say that?. Is there something wrong with you when you don't listen?. I will repeat I am not always right, often wrong. You are a very sad person, who just needs to listen sometimes. Get a life please. It is time for you to move on from this obsession you have with me.
Mikey. You have a serious problem mate. I am not at all aggressive, & I am not oh great one. Just get that chip off your your shoulder & you really need to move on from this obsession you have about me being oh the great one. You have been having a pop at gutter for a while, so I think to mimmick him is not a good thing to do. Have a good week, & cheer up eh? Life is to short, I agree! cheers from dan (not the great one)
Mikey, I can assure I have plenty of humour & I am definately not misserable, I just don't think gutter is funny, do you? but it seems you have a new buddy named gutter snipe so good luck with that. You don't make any sense mate. Why do you call me oh great one of the vodafone forum? Just talk sense. Do you have a problem? Get over it.