Member Info for longtimeinvestor

Dan

''You don't get it do you?''

I think it is you - if same valuation - fewer shares = increase in price per share

Be

haven't time for your ballacks atm

Be

''we are selling under performing assets, that cash is going into the business, that would then theoretically be adjusted in the SP''

what? - the assets are already reflected in the share price

''What they do with that cash ...................''

we know what is being done with the cash - an investment in Vodafone shares

Dan

''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.''

oh dear oh dear - I am not going through this in detail with yet another person.

The market cap will be whatever the market decides but it will not be 4 billion euro lower because of buybacks

''all companies would be be buying their own shares back ''

all companies should purchase their own stock if they feel it is way undervalued and is a better investment than elsewhere

Apple etc etc etc have done very well buying their own stock since flotation

Dan

''but this is cancelled out by the cost of buying those shares.''

nonsense - the value is transferred to the remaining shares.

''It depends whether the vod sp increases after the buy back or not. ''

what is all this 'after the buyback' ?

each days purchases has an effect, even if unnoticeable day to day.

''if we knew the shares were worth & could realise an sp of £1, but we don't know''

the market says they are worth 70p per hare - it is up to the individual investor whether they agree with that or not.

Boe1

''if the company is worth ''

the company is worth whatever the market determines on a daily basis. Selling assets which make no return and investing the proceeds in Vodafone shares for cancellation will increase the relative price per share over what it would otherwise be.

Lea

''but this time they will struggle to buy the shares at a discount.''

net assets £47 Billion

current market cap £34 Billion

At about 82.5p

Some at about 26.8p

Rob

the share price won't be higher if the market values Vodafone at £17.4 Billion at the end of the years compared with the current £19.4 Billion.

Market cap of course may be higher than that currently, which would add to the benefit of the buyback.

£1.71 Billion would remove getting on for 9% of shares at the current price, but of course prices will fluctuate on a daily basis during the buyback programme period.

Rob

the share price will rise this year on a maintained market cap by the percentage removal of shares that 2 Billion euro can make

He is busy trying to make his fortune with £80 million and £21 million market cap 'oils'

I will stick with SHELL and BP

Well done to those investors who secured 14% returns with not so long ago low priced purchases.

MS need a LOT more willing sellers - Fakey hoping they will appear and FAST - no limits on losses for him. At least with an open buy you can only lose per point down to Zero.

Dan

If the market cap stays the same, then purchasing 4 Billion euros worth of Vodafone shares

WILL increase the share price by a percentage related to the amount of shares that have been removed.

Dan

''but there is no guarantee the sp will rise after the share buybacks.''

there is no guarantee that the SP will rise at ANY TIME, so the lower the purchase price the better.

''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.''

?? weird. NO it's not -it's like purchasing 43% more shares with the money

'T'hat would be crazy. ''

crazy?

Personally I find that buying low and selling high not to be crazy

Sk1

You have always done wonders for my stocks when posting dire pessimism about them on the relevant boards.

I have a couple of laggards at the moment SAGA and MARSTONS - could you possibly go on those boards to work your magic - thanks

''Wave 3: In Elliott Wave Theory''

ZZZZZZZZZZZZZzzzzzzzzzzzzzzzzzzzz

I will leave that to others (one or two)

G73

you are a plonker

Sk1

''That threat, until it's sorted, is going to hang over the shareprice ''

the share price has risen about 25% since ML announced that there could be free money available to people who signed on the dotted line to purchase a car, happy with the terms.