Vodafone shares - any good?

srcandas wrote: »

Interesting how things change rapidly. As we discuss Vodafone has:

• addressed the disaster that is Spain (and Italy a slightly lesser disaster I think) by writing off value

....... markets panic over Greece and Spain.

How have they 'addressed the disaster that is Spain (and Italy, Portugal, UK etc) which is people needing to shop around and economise on their mobile phone bills?
All the problems in Europe that sent shares into a tailspin are still there. Its just that people have heard them so often the fear factor has lessened.
We get reminded again as results come out - in Vodaphones case The pre-tax loss of £492m compares with an £8bn profit last year. The only thing that has prevented a real share price rout and a hit to the bosses bonus is using the dividend from Vierzon for a share buyback.
Recently it was National Express who warned of cash strapped customers in Spain and suffered a share price drop.

Glen_Clark wrote: »

PS: I have bought a Virgin mobile for £15 including £10 credit, that enables calls from a virgin landline to be made to it for the same price as landline calls - which is free when you pay £7 a month.
Vodaphone's biggest problems will come when their European customers see how much they can save by shopping around.

Glen no matter how little you think of Vodafone the company has several useful assets, a management and key shareholders that have no reason to see lower profits in the future, and the ability to diversify and work with (or even own) partners such as Verizon Wireless.

In Spain they have lowered their costs and written down values. In a country on the verge of massive civil unrest I think that is a sensible strategy.

This crisis will not last forever and I believe Vodafone will survive to come out the other side. There is of course risk but this is greatly reduced if the share price tumbles.

ps The fact you can buy cheaper has never stopped Ferrari, Microsoft or Fotnum & Masons doing ok

But each to their own :beer:

melbury wrote: »

Because it has been proved that you can do just as well picking your own stocks as paying a UT or IT a whacking great commission, which I already do anyway.:mad:

It is probably better to make your own mistakes then you only have yourself to blame:)

Totally agree with this. Whilst probably not great advice for most people. Having had my fingers burnt with a structured product in the past I now only hold direct. Madness many may say, but it works (or not), for me.

srcandas wrote: »

Glen no matter how little you think of Vodafone the company has several useful assets, a management and key shareholders that have no reason to see lower profits in the future, and the ability to diversify and work with (or even own) partners such as Verizon Wireless.

In Spain they have lowered their costs and written down values. In a country on the verge of massive civil unrest I think that is a sensible strategy.

This crisis will not last forever and I believe Vodafone will survive to come out the other side. There is of course risk but this is greatly reduced if the share price tumbles.

ps The fact you can buy cheaper has never stopped Ferrari, Microsoft or Fotnum & Masons doing ok

But each to their own :beer:

This crisis may not last forever, but I certainly don't see the end in sight.Politicians haven't even begun to address the problems. Just kicked the can down the road, trying to stave off the crisis until after the next election with money printing and massaging the statistics, to try and hide the fact their national debt is still rising.
Ferrari, Microsoft & Fortnum & Masons have a Unique Selling Point.
What is Vodaphone's USP?
As far as I know most of Vodaphone's revenue comes from mobile phone calls, with one companies network about as good as the other. What is to stop cash strapped consumers shopping around for the cheapest calls, or economizing on usage?
Its already gone beyond 'lower profits in future' - Vodaphone has just posted a loss.
Doesn't seem to have sunk in yet though.