180 degree phase change23 Jan 2022 10:32
Not so long ago, the rhetroic suggested Telecoms are untouchable, with any investment in infrastructure only good for standing still. The likes of Vodafone and BT have seen their share prices plummet amongst a slew of articles talking them down, with various commentators focusing on any negative they could conjour out of any event. Covid somehow dropped the price of Telecom stocks, even though they were amongst the most resilient earners during the pandemic. Vodafone has underperformed against IAG and Ryanair, over the past year, even though Airline finances have been decimated by the pandemic.
I always took the view that Telecom stocks were either misunderstood, or deliberately trashed to force them into the gutter, so they could be picked up later when the time is right. Anyone who believes that the markets are fair, or that big company stock prices can't be manipulated, are miguided in my opinion; Off Book trades usually set their prices by the On Book Exchange price, so I don't see any reason why Algo's can't set the Exchange price, while really big trades are completed off book, or through derivatives, which allows big players to pick up large quantities of stock without affecting the On Book price, look at BT and Drahi for example.
Now all of a sudden, Telecom stocks are seeing a change of narrative, and being eyed as takeover targets; As I said previously, never believed the market commentary directed at Telecom stocks, by vested interest media, so a takeover attempt for Vodafone wouldn't surprise me. Any takeover attempt of Vodafone, wouldn't see the same regulatory scrutiny as a company like BT, so I'd see a takeover attempt of VOD as a more likely event.
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