The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Don’t you mean congrats to the few people who made their first purchase yesterday and also sold out this morning?
With every share purchase since 2011 including divs underwater, it’s a stretch to congratulate all voders.
Yes must be short sellers. Can't possibly be years of bad financial managment coming home.
The underlying company still needs to do something positive for the market to reward it with an increasing sp. Sit and hope is not a strategy.
VOD are selling assets and shrinking to try to pay down debt whilst maintaining an unrealistic divi. Until this strategy changes, the market won’t want it.
Bet Hutchinson can't wait to merge with this mess, and take on extra debt responsibility.
Maybe it was this
BNP Paribas Exane downgrades Vodafone Group VOD to "underperform" from "neutral" as it says portfolio reorganisation is likely to be FCF dilutive until around FY 2028
But it isn't going bust, sorry Jax.
Seems an outsize drop. The EU commission cleared the 3 merger today. It must be a vote from the city of the value of such a transaction for investors. It shrinks market share in the only bright spot of the UK market.
Rob, you can’t be right all the time. Stock investing is about being more right than wrong, and when you are wrong to realise it, liquidate that position and move on.
Charlie Munger passed last week leaving an undeniable record of success, but one of his final plays was a big position in Alibaba for the daily journal fund he runs which has lost billions. In a recent interview he admitted his error that he thought they were more than a retailer. I am sure he would be liquidating the position and moving on had he lived.
If he can get it wrong, so can we. The difference is being able to identify when you are wrong and taking action.
Nope, but it is funny. Constantly educating myself though, I am bound to come up with a similar view to the correct answer.
Never stop learning.
I am sure next years macro will be trickier than we hope for, but GAW will once again show it is not dragged to oblivion by such things.
I still see good long term growth in earnings, with a further boost in awareness from the streaming show, and probably an increase in licensing revenue from that.
With a responsible dividend policy, long term investors should not be concerned. DCA in if you don’t own yet.
Interest rates have everything to do with a share that is mostly about the div yield. Being uncovered and with the company shrinking, investors aslo demand a hefty risk premium over the prevailing interest rate they can get risk free from money market funds and treasuries.
You need interest rates to fall to 3% to get a quid here, and that won't happen soon. By the time it does come, the reduced size of the group will become a factor that may weigh down the SP.
They could always try the old fashioned way to get the SP up. Make more money.
VOD are selling €6bn of assets in spain for €5bn. €0.9 of it is locked up in preference shares. It's hardly a win for shareholder value increase.
If you look, the reasons for the low SP are obvious. I'm surprised it's so high really.
Sounds like a double bubble fee bonanza for takeover and merger lawyers. Fees from the mergers which takes merge till 2029 to become FCF accretive. Fees from the purchase. Fees for the bond sellers who raise the new debt to buy back what they sold off to mergeco.
If they didn’t waste money on divs and buybacks they could buy out Hutchinson for cash today.
They aren’t taking over 3. Reducing market share by palming debt off onto Hutchinson in a JV vehicle.
Who’s gonna run that, well?
RR became not a dog when that new CEO came in and told staff and shareholders it’s a dumpster fire and if they don’t change they will lose everything.
Been waiting for VOD to have its RR moment. There was a chance when they parted with Nick Read, but instead replaced him with a clone following the same broken strategy.
Little hope here to protect your div from capital decline until they change, is my view.
If they stopped paying the div altogether the sp may well go up, or at least stop falling.
The city knows they are bleeding off assets to get a div. They would price in a new level of fiscal responsibility.
Many are probably pinning their hopes for continued divs on selling off Italy, but I don’t think they will find the price they want. Already turned down 11.8bn, because they have over 12bn assets and goodwill on the books for Italy and don’t want to be seen to take a write down.
Using the EBITDA multiples of Spain sale, values Italy around 8.5bn. They need someone desperate or dumb to get over 13bn.
Maybe he's expecting Marge to forgoe some of her salary?
They do have profits, but they keeping giving all of it and more to investors, until there are too few assets left to support the debt.
When will investors realise its a negative sum game and support a rational dividend level. If you don’t, an opportunist is going to take it, and no you won’t get a big over the odds offer. They will wait for 40p and offer 45.
Once that div payment is made, there is not much holding VOD up with next one 6 months away. Remove the towers money and twelve month trailing earnings is well below div amount.
The city know the div comes from reducing assets or raising debt and will mark the stock down over following months in preparation for the next payment.