Vodafone Share Discussion Threads

[essentialinvestor] 26/1/2019 13:19

Maddox, that's a very useful post, thanks. Are you holding hear if I may ask? Thanks.

[hades1] 26/1/2019 13:13

1/25/2019 Kepler Capital Markets Set Price Target Sell GBX 180 1/25/2019 Jefferies Financial Group Set Price Target Neutral GBX 165 1/25/2019 Barclays Set Price Target Buy GBX 215 1/25/2019 JPMorgan Chase & Co. Lower Price Target Overweight GBX 240 to GBX 230 1/25/2019 Sanford C. Bernstein Lower Price Target Outperform GBX 235 to GBX 225 1/25/2019 UBS Group Reiterated Rating Buy GBX 230 to GBX 230 1/23/2019 Royal Bank of Canada Reiterated Rating Underperform GBX 125 1/23/2019 Credit Suisse Group Set Price Target Buy GBX 225 1/21/2019 Macquarie Set Price Target Sell GBX 125 1/11/2019 Deutsche Bank Reiterated Rating Buy

[montyhedge] 26/1/2019 12:55

For analysis and professionals free cash flow is the number one figure to look at and 5.4 billion, companies would give anything for that kind of free cash flow.

[stewart64] 26/1/2019 11:47

I'm a bit on the fence with Vod. re. value. Like railways in the Victorian era, mobile data is the biggest social revolution of the 21st century bar none. But losses over several years say it doesn't make money. Just a case imo if it can pass on the book to somebody else at a profit to market cap.

[stewart64] 26/1/2019 11:20

Lord Gnome...agreed big difference between cash flow and profit. Does anybody dispute that Vodafone has made a combined loss of 16 billion euros between 1st April 2015 and 30 September 2018...3.5 years. It's there in black and white on the accounts. Careful made the analogy of an ATM machine for cash flow..sure you can have a cash flow but ultimately zero profit equals the same sum off the balance sheet short of creativity with intangible assets. Tbf Vod has a huge balance sheet to chip away at.

[car1pet] 26/1/2019 10:05

Good post Maddox. Do you expect the share price to fall further? Weekend papers will probably have things to say

[123trev] 26/1/2019 10:03

Well,Maddox totally agree with that post and gives an insight into how posters should be looking at this my only worry would be Liberty here and their infrastructure costs but on the whole moving forward things look a lot brighter but when to buy!

[maddox] 26/1/2019 09:51

Well EI, where is the scope for debt reduction? you ask: The current planned drop in operating costs will generate €1.2bn per annum - €400m on course for delivery this fin year (we're in Q4 already so confidence is high). Another €500m annual cost reduction from Liberty Global merger. Then further cost reductions from Tower collaboration, hosting outsourced, digital transformation and platform consolidation between operating units: All these initiatives are underway. I see no problem in VOD using debt to financing multi-year spectrum deals. The cycle of new auctions is near its peak. So as the debt taken on for Project Spring starts to generate cost reductions - debt will be reduced. Vodafone's debt horizon is ten years, their credit rating high and cost of debt low. I would recommend anyone holding shares in Vodafone to listen to the November Webcast and yesterday's update - its all presented in great detail. Regards Maddox

[car1pet] 26/1/2019 09:44

Hades1 how much do you reckon it would cost Liberty to buy Vodafone.The usual rules on takeovers are 30% above market price is enough so that would make the share price 178p.I'd take that!!

[hades1] 26/1/2019 09:40

I was talking about Liberty Global wanting to buy the whole of Vodafone. The final deal was the sale of selective parts of Liberty Global to Vodafone - that was not Liberty Global’s original intent. https://www.ispreview.co.uk/index.php/2018/02/vodafone-confirm-talks-possible-liberty-global-eu-asset-swap.html https://www.ispreview.co.uk/index.php/2015/06/vodafone-and-virgin-media-uks-parent-liberty-global-confirm-talks.html

[sarkasm] 26/1/2019 09:08

Erogenous Jones 25 Jan '19 - 16:22 - 78 of 79 0 1 0 Hargreaves Lansdown have published their research on this link Https://www.hl.co.uk/shares/share-research/201901/vodafone-uk-towers-for-sale-too

[hades1] 26/1/2019 09:02

https://seekingalpha.com/article/4235725-vodafone-group-plc-vod-ceo-nick-read-q3-2019-trading-update-call-transcript

[essentialinvestor] 26/1/2019 08:30

That's pre spectrum costs. Misleading figure imv. Need to look at the post spectrum number. That's close to 4 billion. The dividend is covered, just. But where is the scope for any debt reduction?.

[montyhedge] 26/1/2019 08:27

Yes your right, free cash flow 5.4 billion, that's the important figure.

[toon1966] 26/1/2019 08:16

hades1 said 25 Jan '19 - 19:51 - 34796 of 34805 "...My bet is that Liberty Global come back for the whole of Vodafone some time soon. Original deal failed over Vodafone valuation." It has not failed as you say, VOD's purchase of Liberty Global assets in Europe is with EU regulators, a decision will be made in the first half of this year. hxxp://europa.eu/rapid/press-release_IP-18-6772_en.htm

[tygarreg] 26/1/2019 07:39

I calculate that as the MC today at 1.37 per share is 36b then an annual dividend of 13p would cost around 3.5b? They have more than enough cash to cover that!

[lord gnome] 26/1/2019 07:31

Hmm 🤔 Another analyst who doesn’t understand the difference between profits and cash flow. That could be very dangerous.

[philanderer] 26/1/2019 00:07

Market report: Vodafone shares are trading close to a 10-year low amid concerns over the dividend. CMC's Hewson noted the size of its dividend, currently yielding around 9%, was not fully covered by profits. This means that the company is having to fund the payout by way of borrowing, he said. "A dividend cover of less than 1 means that profits aren’t sufficient to cover the payout to shareholders, something that isn’t sustainable over time." HTTPS://uk.webfg.com/news/market-report-close/london-close--3709347.html

[mastey] 25/1/2019 22:13

There is still huge downside potential, India mess, Europe having to keep reducing prices as the price war intensified. RBC in mt view are spot on with 125 target ( max in my view) . Vodaphone is the GE ‘‘tis side of the Atlantic.

[hades1] 25/1/2019 20:23

Huge volume over last couple of days on drop when no one really believes the dividend is in any doubt at least for the next few years.

[hades1] 25/1/2019 20:17

Time will tell but support at 142p failed too quickly.For me that's not bearish but highlights other possibilities.

[diku] 25/1/2019 20:10

It is computer driven triggering lower lows...new trading range 120 - 140p...will see 240p again maybe in 10 years time...for CEOs it seems to be a walk in the park...easy come easy go...

[tim 3] 25/1/2019 20:03

I always pay attention to how shares perform at support, these barely paused for breath at 142, thats a pretty bearish sign to me and indicates sellers are very strong here and further drops are likely.imo However and this is one reason I don't short a strong rally can come out of the blue and for no apparent reason and get the shorts rushing to close.