Keynote speech by JJ Strauble of Redwood and Tesla co-founder have copper market in supply deficit by next year and for remainder of the decade. Industry has no chance to keep up with the demand caused by batteries and the electrification of everything. Enjoy low copper prices while we can.
Given the recent large holdings taken by two activist investor types, any change of guard will be to reflect their preference, so it would be good to hear from them. If they want to leverage to pay themselves a div then VOD will continue to do so, until it can’t refinance old debt, then the bond holders will be laying down the law. It’s not in Read’s or any CEO’s hands.
Payout too much cash they don't have in divs and buybacks. Have too much debt because of it. Simple.
The latest aco****s show the TSR is just 2% per annum last 10 years. You can get 3% on a 10yr treasury. Why risk the capital, is what the big money will be thinking, so the SP remains beached, since 1998.
On Cheaps comment We'll find about the debt refinancing as the first bond is up in September. A cool billion dollars, current coupon 2.5%. You can get 3% on a 2yr US treasury so not sure why you would lend to VOD for less.
Not sure what you mean about Tesla. They have no debt so are ungeared. Results for Q2 out later tonight. You can see if they managed to handle Shanghai being shut for a month and remain positive. Short term fun. Don't miss the dip buy opp.
Not sure why it’s nonsense to point out VOD’s refinancing figures. The bonds are all there on the VOD website. You can calculate it yourself. It’s a point to consider for long term investors. VOD may do well as a company but that debt has the potential to erode earnings improvements.
Gotta talk about something while VOD holders wait to see if debt has to be refinanced at much higher rates. First up is a billion dollars in Sept at a coupon of 2.5%. Probably have to double that coupon.
About 11 billion euro currently on low coupons has to be refinanced by 2025. They don’t seem able to pay them off so will have to roll them into higher coupon debt.
The gbp has some pep in it’s step, and a few things like property are drifting up. Maybe the bottom in markets is in. My 115p will look more like the ramblings of a madman it is. Big earnings in US this week. We’ll see if all problems have been priced in already, or the next leg of blind panic begins. Tesla Wednesday. You can all point and laugh at me.
I am a hopeless non achiever so never listen to me. Fitch however just agreed that the road ahead for telecoms is tough, and I think that debt will not help, is my point.
Fitch Ratings-London-06 July 2022: High inflation and lower economic growth will have a gradual and delayed impact on the European telecom sector’s ability to increase profitability, Fitch Ratings says. We foresee no significant degradation in pricing and cost structures in 2022, but we expect pressures to build up and temper growth and margin improvements in 2023-2024.
Stay invested in low/no debt companies with pricing power, but don’t listen to me. Non achieving idiot.