Vodafone shares - any good?

[Glen Clark]

Just to confuse matters further: http://www.telegraph.co.uk/finance/n...l-to-make.html

[atush]

Originally Posted by cos

I bought into Vodafone a year or so ago and today am 6.5% down on share price. Got a reasonable divi this year. However, past performance etc . . .

I got them in the early 2000's as a growth share (didn't pay a divi then I dont think?) and they are now obv one of my income stream ones as they have switched from one part of my portfolio to another.

The problem you find is when you are looking for income and buy now, you do have short term volatility. So hold your nerves. They should come good.

my individual income shares incl Vod, Glaxo, Shell, United Util, Aviva. But I didn't buy Vod and Aviva as income shares originally.

[Glen Clark]

Looks like a campaign starting to reverse Vodaphone's price increase (follow the link to you tube and interest expressed by the BBC): http://www.guardian.co.uk/money/2012...ings-call-away

[gadgetmind]

Originally Posted by Ifts

As an example a little while back on here I was drawn to the attention of N Brown (BWNG) by fellow poster 'gadgetmind', after looking into it I liked what I saw and decided to buy some, got in at 259p which is now showing a 34% increase.

Glad it worked for you and also glad you did your own research.

My wife holds BWNG as part of a 25 share portfolio as diversity is key across both companies and sectors.

[mania112]

I have a friend who works at their HQ.

Vodafone are offering a load of people redundancy, and closing 'R&D-type' departments - not good signs.

[srcandas]

Originally Posted by mania112

I have a friend who works at their HQ.

Vodafone are offering a load of people redundancy, and closing 'R&D-type' departments - not good signs.

Cutting non mainstream activities could boost profits?

I assume they already buy in most of the technology and work with partners so I'm not too sure that cutting costs in the current marketplace is not a very smart move

[gozomark]

Originally Posted by mania112

I have a friend who works at their HQ.

Vodafone are offering a load of people redundancy, and closing 'R&D-type' departments - not good signs.

not good signs for the employees concerned, but for the share price ??

[melbury]

Must admit have slightly gone off the idea now - perhaps I should start looking elsewhere. I bought Game Group just a couple of months before they went bust, so certainly don't want to repeat the experience

I just want something that is safe as houses, not too expensive and pays a really good dividend Not asking for much am I???

[mania112]

Originally Posted by gozomark

not good signs for the employees concerned, but for the share price ??

The fact they're cutting back on R&D is a bad sign for future profits.

I don't have any more details than that on Vodafone, just my two penny's worth.

Edit: I also know Vodafone and O2 are a step or 2 behind TMobile and Orange (owned by EE) when it comes to 4G

[mania112]

Originally Posted by melbury

Must admit have slightly gone off the idea now - perhaps I should start looking elsewhere. I bought Game Group just a couple of months before they went bust, so certainly don't want to repeat the experience

I just want something that is safe as houses, not too expensive and pays a really good dividend Not asking for much am I???

Well yes, you shouldn't be directly investing in shares if you want guaranteed results. Although still not guaranteed, why not leave the headaches of picking stocks by investing in a collective?

[srcandas]

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
• demonstrated how it works with partners with a £2.4 billion dividend from Verizon Wireless (it owns 45%).
• the intention to buy back shares with some of this money.

and the share price at £1.61 looks cheap to me and we may well see a buying opportunity below £1.50 as markets panic over Greece and Spain.

Thanks OP you may have led me to an opportunity

[Glen Clark]

Originally Posted by srcandas

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]

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.

[srcandas]

Originally Posted by Glen Clark

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

[melbury]

I saw the price had dropped quite a bit today, but unfortunately wasn't in the right place to buy.

Will see what happens tomorrow

[melbury]

Originally Posted by mania112

Well yes, you shouldn't be directly investing in shares if you want guaranteed results. Although still not guaranteed, why not leave the headaches of picking stocks by investing in a collective?

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.

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

[Thrugelmir]

Originally Posted by srcandas

has never stopped Ferrari doing ok

Yet Fiat bought the Company to bail Enzo out..........

Every Empire has its day as time moves on.

[markwilkinson]

Originally Posted by melbury

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.

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.

[Thrugelmir]

Originally Posted by srcandas

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,

I would have thought general economic woes in Europe putting downward pressure on revenue is a major issue.

As emerging markets are far less profitable per subscriber.

[Glen Clark]

Originally Posted by srcandas

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

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.