Discussion Insights
Recent discussions among Vodafone Group Plc (VOD) investors reveal a mixed sentiment, largely shaped by the company's ongoing challenges and strategic moves, particularly concerning share buybacks and financial performance. Many investors expressed frustration over significant losses, as indicated by comments like, "I have around 250,000 shares of VOD, deeply under water so far," reflecting a prevalent feeling of disillusionment. Despite ongoing share repurchase efforts to reduce shares in circulation, some investors question the efficacy of these buybacks over addressing the company's substantial debt. One particularly noted, "Why not pay down debt instead of squandering billions on vanity scams?"
Financial highlights of the recent discussions also pointed toward minor improvements amid a generally downcast outlook. Investors noted a consistent decline in share price, with forecast target prices being revised downwards by analysts—HSBC cutting its target from 77p to 75p, and CFRA lowering it to 70p. However, amid these concerns, some shareholders, like 'action,' noted the attractive dividend yield of 6.1%, which could eventually rise to 10% if share prices drop further. Additionally, investors are keenly aware of the upcoming merger implications and potential cash flow, as one remarked, "with over 40 billion turnover... a merger to come... there must be an opportunity here."
Overall, the tone remains cautious, with many investors hoping for a turnaround while simultaneously feeling skeptical of the management's capabilities in executing a recovery strategy. As summarized by one participant, "the market is obviously pessimistic about the long-term prospects of VOD and Merge," suggesting that strategic missteps and market conditions will need to change before investor confidence can be restored.
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