Member Info for meshtrader

Why was BP down below 2 years ago? Same irrational reasons apply to telco.

Now we know why FTSE has been underperforming due to a lack of meaningful investments by the UK pension funds over the past 20 years.

https://www.dailymail.co.uk/news/article-11317867/Growing-fears-Gordon-Browns-pensions-timebomb-finally-explode.html

Vod has got to be THE most under valued stock in the UK right now. Just added almost 10% to my exiting holding.

Currently the sp trading at only 57% of its NAV and currently yielding 7.7%.

A no brainer.

One of main article's by FT today;

"‘Told you so’: EU struggles to contain Schadenfreude at UK turmoil
European capitals believe new government’s tax-cutting, high-borrowing plan exposes flawed thinking that drove Brexit"

With the current gbp/usd @ 1.03, the Americans will be circling vod and many other uk listed companies.

Effectively sterling has lost over 30% since the start of the year, making vod nominally cheaper than the lows of 2008. What a disaster brexit wrought upon us. The current events are simply consequential effects, i.e. bad policies and politics. A bit like the back to the future where Marty returned to his home only to see his city in chaos and flames. If we were to point to one single event triggering all this mess, it would be, in my opinion, assigned to brexit.

So yes, well done to all brexiters. Enjoy your fall and pain.

The pros, aka those with serious money (the super wealthy) know a re-pricing of consumer and business customers is around the corner and with that goodbye debt. If you look at the debt schedule of Vod, it's nothing to worry about and they have almost 8billion in cash with a growing FCF.

As I have been saying all along, just keep adding. The idiots are those who over trade and get lucky now and then, but long term they will lose their shirts.

As per previous posts, this is yet another proof of deep value. In the span of less than year, we have now 3 influential shareholders and the number will keep growing if the sp remains as these depressed levels.
Vod is a cash machine beast and soon much of the free float will be in the hands of strong holders, who will be looking at increasing their stake to assert more influence. Shame there are barely any shorts as they would have panicked and pushed the price to 150+

Vod has got to be one of the best if not THE best value stock in the UK right now

For the first time in a while we have a meaningful bullish divergence on the daily RSI.
As I have written in the past the monthly chart is gearing up for a massive reversal of some sort. The trigger could be the this daily divergence. Let's see. The MACD is inconclusive.

On FT: "Investors increase bets against euro as energy crisis intensifies"
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Since when are short term bets viewed and perceived as investments? These are pure short term bets. You know these articles are paid for by vested interests, where they are trying to sugar coat the motives.

US is running a 1trillion annual deficit (minimum) year over year. This is the end of the $ and its slave currencies such as £, EURO, Yen etc.

There is almost a zero chance they will increase rates and sustain these longer than one year as they won't be able to afford the crippling compounding interest. 1% incremental increase on 1 trillion is 10billion in added interest cost. Sure, US has short term dated as well long term dated treasuries, but when you are sitting on 30 trillion in total debt, it's a bit too late to start playing the prudent game.

They are addicted to printed money and they can't just brush it aside by starting proxy wars so they can blame increasing costs on Russia, China etc. Before the war it was about the Pandemic. This is really what happens when you play with the money printing fire wheel.

Following the q2 update, I wonder the real motives behind the usage of the "modest" sprinkled all over the statement.

I am inclined to believe Warren is trying to set his successor up for success. It's not far fetched to envision this as the opposite would be no good to anybody. The new CEO will be all set to surprise to the upside in the first few quarters as the downside was covered by WE in his recent communication.

Its all about expectations management.

On another topic, also wonder when and not if BAE or another consortium will bid for the group. At these levels even SpaceX would be interested if they were to offer a portion of the shares to the uk government. The current valuation simply doesn't make any sense.

To those interested, simply have a look at the operational cashflow between these two. You will discover how undervalued vod is compared to its American bloated peer. Operating cashflow will keep improving further as they are transforming their back office and customer experience journey through standardisation and automation.

Vodafone:https://investors.vodafone.com/sites/vodafone-ir/files/2022-05/vodafone-2022-annual-report.pdf
Verizon:https://verizon.api.edgar-online.com/EFX_dll/EdgarPro.dll?FetchFilingConvPDF1?SessionID=hG9-kvUTJgFEEsQ&ID=15556310#page48

Just so we set the expectations right, verizon is valued at $180billion!!! Yet only manages twice the operating cash flow. Go figure.

"I'm left wondering what drove the uptrend since May? Anyway we are knocked back now. Obvious risk people have to start giving up their mobile phone contracts. I'm still guessing 110 but that's as helpful as a spin on tombola. My long term fear remains at 90p. That way even with the dividend and inflation I can never break even."
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In a digital age people giving up their own true weapon in living a productive life? Not even during the 2008 depression (iphone had just been launched! So apps echo system was still in its infancy) did people ditch their phones or contracts. Also, don't forget the role of big numbers, i.e. when you pay 500 toward energy, or counsel tax north of 150/month, petrol north of 400/month, a mobile contract of 70-90 wont deter anybody. Its the individuals's space of solace to find peace and to communicate, play, listen to music or enjoy other entertainments. Don't forget peoples banking and invoices are now linked to their mobiles, without which one is truly ..cked. Have you tried flying recently? How do you checkin or access your boarding pass? How do people pay over the counter? The list is massive and I can go on and on. Hope you get the picture.

Besides, don't confuse vod with other uk exclusive firms. Vod is well hedged in that its uk revenue makes up ever smaller portions of its total revenue. Still people wont be dropping their contracts, and those (against all odds) deciding to ditch their contracts are not the kind of customers that these companies are betting on. Either people see the value in items and services they receive or they dont.

My best example to you is american express. You think their customers will be ditching the super expensive charge cards? Think again!

The shares are trading at 2x EBIDTA.

Robleo
Check my recent posts. There are no silver bullets.

Fleccy
These are arm chair dreamers/traders.
Just noise on these boards and no substance.

"This can easily go below £1... the dividend hasn't been covered for years..."
Yet, free cashflow is increasing. Funny that, right?

This critical and milestone news was neatly brushed aside amid the market depression in the last couple of sessions. Something is really broken with these markets and the UK government mess isn't making things easier. And the irony of it all? An EU member making the first investment and not the deluded government. UK stocks never recovered from the suicidal brexit.

https://world-nuclear-news.org/Articles/Collaboration-for-Rolls-Royce-SMR-deployment-in-th

Gary59
"That’s all well & good mate until a company cuts their dividend.
I’m not suggesting VOD will do so but they have masses of debt, if earnings don’t come in because of the economic tidal wave that’s about to hit then a cut is possible. None of us know so the best hedge if you want to stay invested in stocks is to diversify."
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Apologies for the cynicism, but to me the above sounds like; "if I don't eat, I will die".

Have you even bothered to look at the debt schedule for vod? If so, tell me what worries you? Right now you come across as somebody who has never used mortgages or loans.

is the ECB. The yanks are betting against both the UK and the Euro region. Their particular concern, this time, is Italy. Is vod being sold down because of its iItalian unit? Hardly! And we all know what ECB will be doing when the fat cat bureaucrats return from their exclusive holidays. They will, with 99% likelihood, backstop and guarantee any Italian default risk. Why? Because they have to, less they prefer EURO and, EU for that matter to get annihilated.

Some macro funds are trying to play Soros game by shorting italian debt. It wont end really well for them. I truly hope they have already covered their shorts and pocketed handsome returns, because the ECB will do whatever it can as Mario famously said back in 2012. I did lose a massive bundle on my shorts when he shocked the markets then. For those interested, here is the current spread to the german bund; http://www.worldgovernmentbonds.com/spread/italy-10-years-vs-germany-10-years/

This market selloff comes during the holiday season based on bogus narratives and low volumes. Funds have had to deleverage across asset classes indiscriminately to beef up their cash positions and reduce over the top leveraged risk exposure. Inflation is expected to be rampant (ca 10%) for a foreseeable future. The money managers who are salivating over this drop know fully well that very high inflation such as the one experienced right now will erode debt. They KNOW cash is trash and are doing their best to trash talk stocks through any media outlet.

I will end by the following teaser, is this all about valuations, debt, inflation or the future status and viability of the world reserve currency;-) End games are certainly intriguing.

Mehmehmeh
No, NL makes up a strategic spoke of Vod competitve advantage. A few of Europe's biggest tech companies have HQs in Nl and millions of people travel to and from NL and its right next to their biggest market, Germany.

Mrcautious
Just to put things into perspective. At the time when Vod acquired Mannesmann for a whopping 190billion, the following were the libor rates a the time. They managed to service that debt then without issues. It's all about the cash flow and vod got tons of it coming their and rising.

https://www.global-rates.com/en/interest-rates/libor/european-euro/2000.aspx