Vodafone

Chrismaths

I get your take on it. You still seem to think you have had an enforced sale of shares. But you haven't. Look at Invensys today - they have just consoldiated their shares 1 for 10. So by your reckoning everyone who holds Invensys has just been 'forced' to sell 9 shares for every 10 they held previously. But obviously the price of NEW shares is circa 10 times higher than the old shares was. They are no better or worse off. You seem to be confusing nominal pricing with absolute pricing - And we all know what those who know the price of everything and the value of nothing are! The market isn't as stupid as you seem to think. No one loses out by these transactions, or you wouldn't get 99.97% acceptances for the plan at the EGM.

Murtle

I am understanding your take on it.But, you sold the 377 shares at 120p (that's what it works out with the 8b shares to 1 normal share rate), which is money you can use to repurchase 377 at 120p then you will have the same amount of shares you had originally and you can forget this ever happend.Luckily as it so happens they are +/-115p today, so you could purchase a couple more then the original 377. Then you can keep them and resell them when they are more then 145 and make money.If you repurchase them then you won't loose out. If you don't then you will have learnt that the stock markets can go down as well as up......and if a company releases money, they can refund it to you at the rate the shares are at. They haven't ripped you off though, they have given you market rate for the shares.

derrick

Well the price of Vodafone has not increased to take account of the enforced sale of shares, they are still around 115,( haven't had time to look today), and I very much doubt that Invensys has increased by 10 fold, ( the same happened when CGNU became Avviva, the enforced sale of shares happened the same way, and the share price remained the same)
They are accepted by the EGMs because they are authorised by the big players,pension companies etc, the small investor never has a chance,look what happened last week when the small shareholders, (10%), wanted the CEO out, the big players just over rode them.
I have been forced to relinquish 377 shares at a reduced market price,when i did not want to.

derrick

Murtle wrote:

I am understanding your take on it.But, you sold the 377 shares at 120p (that's what it works out with the 8b shares to 1 normal share rate), which is money you can use to repurchase 377 at 120p then you will have the same amount of shares you had originally and you can forget this ever happend.Luckily as it so happens they are +/-115p today, so you could purchase a couple more then the original 377. Then you can keep them and resell them when they are more then 145 and make money.If you repurchase them then you won't loose out. They haven't ripped you off though, they have given you market rate for the shares

I did not sell them, they have been forcibly sold, if I repurchase i will have dealing charges, haven't you read my posts? thus incurring further loss, I did not want whatever days market price they traded at, I wanted the price I choose.

cheerfulcat

I have 377 shares gone, therefore I CANNOT recoup the value IF they go back up on those 377 shares, I have been forced to sell 377 shares at £1.16, so if the shares I have left, 2637, go back up to £1.45, the 377 cannot as I do not now hold them, therefore my profit on them can never be realised. YES a rip off.

But there are now fewer shares in issue so the profits per share will be higher than they would have been. It is not helping to think in terms of number of shares; if you think in terms of values then you are in almost exactly the same position you were before the consolidation. As others have said, had the money been returned without a consolidation the value would have come off the shares. Vodafone gave you the choice to do with the money as you would - there is nothing preventing you from buying more shares ( except stubborness! ).

derrick

cheerfulcat wrote:

But there are now fewer shares in issue so the profits per share will be higher than they would have been. It is not helping to think in terms of number of shares; if you think in terms of values then you are in almost exactly the same position you were before the consolidation. As others have said, had the money been returned without a consolidation the value would have come off the shares. Vodafone gave you the choice to do with the money as you would - there is nothing preventing you from buying more shares ( except stubborness! ).

Nothing to do with stubborness,read my last 2 posts.
To buy more means dealing charges,(which means even more loss), I have no doubts that the profits per share will not increase, just as we got ripped off with CGNU/AVVIVA, in the same way.

Murtle

Then Buy Some More With The Money You Have Received From The Payout. It Will Equal The Same And You Won't Loose Out.mary

derrick

Murtle wrote:

Then Buy Some More With The Money You Have Received From The Payout. It Will Equal The Same And You Won't Loose Out.mary

Once again you are not reading my posts, if I purchase more shares I will have DEALING COSTS

Chrismaths

They are accepted by the EGMs because they are authorised by the big players,pension companies etc, the small investor never has a chance,look what happened last week when the small shareholders, (10%), wanted the CEO out, the big players just over rode them.

1. You have a persecution complex. Get over it. Two things happened on one day. They paid a dividend. They did a share consolidation. It's all perfectly normal, and if you sit down with a pen, paper and calculator instead of shouting about being oppressed, you'd understand that. I hope you don't own any topps tiles - They are returning 54p per share and undertaking a 3 for 4 consolidation!
2. This is just so wrong it defies belief. Morley (Norwich union investments), Hermes (a massive US fund house) and Standard Life investments all opposed Sarin's reelction. They are pretty big boys. It's just that more institutions wanted to create change from the inside rather than pushing the company into a board level crisis - a poor skipper is better then no skipper. It was all posturing.

They returned the cash because they have no use for it. They can't generate a return on it. Therefore returning the cash means that the remaining business will produce a higher return, as they do not have the drag of the cash. This is called operational gearing. I don't expect you to understand it.

cheerfulcat

The same cake is being cut into a smaller number of slices, so each slice will be bigger.

As to dealing charges; you are talking about £12.50 and .05%; it's not exactly a king's ransom. If you felt this strongly about it why didn't you sell when the return of capital was announced?