RE: Bought at 28011 Feb 2022 08:48
Unloaded all my Vod shares at 1.39 and changed into USD and invested in Google the other day at under 2800. Goog in 18 months probably 25/30 pc higher after share split, if a bid or breakup doesn’t materialise for Vod it’s back to 1.10. Vod and BT carried high debt becos historically they had better profits, they have had their profits “ regulated away “ from them especially in the U.K. Vod deals always seem to be capital destructive and the management is pretty poor, obvious now the only thing holding the share price up was the dividend, when that was cut the share price cratered, and it has little to no growth. The problem with this U.K. dividend dross is the epic levels of debt, rising rates are going to ratchet up costs and in BT’s case they are basically a giant pension deficit with telecom attached. Owning this stuff is terrifying, there is a real chance with it that it ends up with suitors walking away, riddled with debt, capital raises, dividend cuts and a sub quid price tag. The ftse 100 now only 600 points above where it was 21 years ago, it’s pretty dire, why? Becos its full of stuff like Vod, Lloyds, BT, and “ other assorted dividend or ex dividend rubbish “ as Terry Smith describes it.