RE: This Weeks Winner2 Mar 2026 22:00
Hi Roofer, Yeh I am cruising on mate. Could do with a rise tomorrow though. Of course the Iran war is a big worry, but what will be will be. Don't panic Mr mainwaring. They don't like it up em, How did you know I was going on a luxury cruise to Iran paid for by my vodafone profits, but now I am happy going to the Italian dolomites instead. Have a great week mate. Don't forget the vod share buy backs only work if the sp rises after the buy backs, if it falls then that is a loss to vod & it's shareholders. I will explain it again for anybody who still does not get it. It helps if you learnt maths before basic hand held calculators let alone computers were invented. If anybody is confused when I say vod makes a profit from the rise in sp after the buy back, I mean it makes a profit on the shares it buys back, not on all the shares in circulation. Vod buys back shares because it thinks they are under priced to (in their words )return money to shareholders. There is only 2 ways vod can return money, 1 increase divi. 2 increase the share price. Vod has not increased the divi by much, so it needs to increase the s'p. It does this by buying back shares that it thinks are under priced & then cancels those shares to increase earnings per share. If vod is correct in its assumption that the shares are under priced then the share price will rise. Vod can then cancel the shares it bought back at the lower price before the rise in s/p but increase the earnings per share on the increased value of the vod s/p. This all all might sound a bit complicated, but it is very simple. Vod is buying back shares at a discount to there perceived real value, so are making a profit ,but only if the sp rises, if it falls then they are buying back shares above their real value, so that is a loss. This is all basic maths common sense. I fully understand how vod share buy backs work, clearly many on this forum don't. Buy backs are not always good. Vod bought back many of it's own shares many years ago at way above the recent vod s/p & of course they lost a lot of money. Vod is doing O.K. recently, but when it is was buying back shares & the s/p kept falling that was a disaster. You need to read vods history to understand this. SIMPLE vod buy back shares, s/p goes up good. vod buy back shares s/p falls bad.
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