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Fingers crossed
Vodafone is a very good buy at 65p. In 5-10 years it will have proven so.
However for anyone who has an average above 100p… not so much.
There will be a recovery , one day.
Looks like it reversed a 3% decline overseas yesty
I remember saying that at 75p-80p and bought, fortunately I sold again and made a little profit.
Who knows where this is going but like ITV it will have to go up big time at some point. it's just knowing when to jump in again.
"However for anyone who has an average above 100p… not so much."
Why do you assume that? There's no reason why Vodafone wont go up to 160p, or £2, when sentiment reverses.
I'll keep using Rolls Royce as an example, because I think it reflects Vodafone's situation. Rolls Royce currently has a P/E of around 17 and is still being pumped, last year it was around 70p and the price has nearly tripled since then. Vodafone's downward trajectory has been more steady than RR's, but that's more about the ongoing negative narrative directed toward the Telecom sector in general. Telecoms has been under attack for years, with financial media persistently attacking the individual players and aiding the market in driving prices down, yet private equity has been mopping assets across Europe as they come up for sale. The media pushes the debt narrative around established Telecom players, but it isn't the players who generate repeating revenue who are at risk it's the new entrants who've been financed with free money. I believe at some point the market will decide to pump the sector, probably when the vested interests have built up a nice chunk of the assets at knock down valuations.
I need to correct something in my last post, I said RR's price has nearly tripled since last year, I should have said it's more than quadrupled since it was 70p last year.
There’s reasons for RR’s inflated price . I sold at 290p but put it elsewhere which has much lower valuation.
There’s reasons for BT being suppressed but I can see a reduced capex future and a reason to hold shares in a future cash cow.
I hold Vodafone shares but I can’t see what they will do that will cause a catapult in fortunes? Rolls yes, bt yes, but Vodafone, not so much.
Here are some of the articles around the RR drop to 39p in October 2020:
"Rolls-Royce shares hit 17-year low after it reveals £2bn cash-call"
https://www.theguardian.com/business/2020/oct/01/troubled-rolls-royce-reveals-2bn-cash-call
"Coronavirus: Rolls-Royce to raise billions in Covid-lifeline"
https://www.bbc.co.uk/news/business-54367717
Then in October 2022 when it was around 70p:
"All in, the leaner organisation has shown signs of strength. Two years ago, the group saw £4bn of cash walk out the door, last year that fell to £1.5bn and at the half year mark it was in touching distance of break even. Barring any significant disruptions, the group is on track to be free cash flow positive this year. This should help debt make its way lower and would go a long way in restoring our faith in Rolls' ability to stand on its own two feet."
"Rolls is also barred from paying dividends until at least 2023 as part of its loan terms. Even without that red tape, the group couldn't pay a dividend because it's sporting a negative equity position - meaning liabilities outweigh assets."
https://www.hl.co.uk/shares/share-research/202211/rolls-royce-on-track-for-full-year
So RR weren't even allowed to pay a dividend until this year, Vodafone hasn't had loan constraints on condition of stopping dividends. I'm not saying RR are a bad company, they are a very good business but they are treated differently to Telecom sector companies and that is reflected in the current P/E. It's all about the narrative, with the market writing the scripts to suit their own vested interests; At some point they'll have to change the narrative around Telecom stocks, since the World is now as dependent on Communications as it is on electricity.
What the Rolls Royce story does highlight is the market's hatred of dividends, since they blackmailed RR to drop the dividends as a condition of supplying loans.
Yepp looking good.
VOD net assets c£60bn looking more attractive today after FED. Eyeballs down for BoE et al
NOW is the time...well...when it hit 65.05 but you can't have it all....the market is manipulated and as another poster said Rolls Royce is a good example...I see a takeover offer for several Telco players...Spirent being another