Unilever and Vodafone Shares

brasso

I bought VOD at 156.78 in December, and TSCO about a year ago for 322. Both are up about 19%, so am happy.

Would I buy now?

I can see TSCO being a long-term winner given the business they are in, and their evident determination to claw back what they lost last year. For that reason I plan to hold, and on balance, would probably still buy more, especially if there is a dip.

With VOD I'm less sure because telecoms/technology are more volatile and subject to fashion. The next big thing can appear at any time and leave the old players stuck in a downward spiral. That said, VOD is one of the more stable, so I plan to hold for a while at least. When profits get above 30% I tend to reach for the Sell button unless it's on a steady trajectory. Beyond that point, if the price plateaus or dips I tend to get out.

So as always the hard question is when to sell rather than when to buy.

In summary, buy TSCO but perhaps wait for VOD to dip again as it tends to do.

Biggles

Glen_Clark wrote: »

How can an ordinary guy do his own research on Vodaphone?

Using the correct spelling in search engines would be a start....

;-)

Glen_Clark

brasso wrote: »

I bought ... TSCO about a year ago for 322.?

Undecided as usual I bought equal amounts of Tesco, Sainsbury, & Morrison last year. Ignoring dividends Tesco up 16%, Sainsbury up 31%, Morrison down 5%. I still like Tesco, but as for buying more I'm thinking of Morrison, usually a Stock Market Darling with the highest PE ratio, but currently out of favour with the lowest PE ratio of the three.
The more I think about it, the more confused I get

redbuzzard

Biggles wrote: »

Using the correct spelling in search engines would be a start....

;-)

And while you are at it, there's only one eye in Verizon.

What a load of wibble. The loss reported for H1, while not the greatest news, includes probably £6n of non-cash write-downs. EBITDA for H1 was £6.6bn (-3%). Free cash flow £2.2bn (-17%). Dividends are paid from cash, not reported profits.

Voda is not the only company to have taken big writedowns in southern Europe. I suspect there is more to come.

Voda is certainly past a peak, not necessarily the peak, and has some areas to deal with. But it isn't a lame duck.

However it is in a competitive business with strong and sometimes unpredictable tides and one-off effects in both directions. That will cause volatility.

E&OE. I didn't read more than a page or two of the interims as I am not thinking of buying it. Or any other share just now.

Glen_Clark

redbuzzard wrote: »

And while you are at it, there's only one eye in Verizon.

What a load of wibble. The loss reported for H1, while not the greatest news, includes probably £6n of non-cash write-downs. EBITDA for H1 was £6.6bn (-3%). Free cash flow £2.2bn (-17%). Dividends are paid from cash, not reported profits.

Voda is not the only company to have taken big writedowns in southern Europe. I suspect there is more to come.

Voda is certainly past a peak, not necessarily the peak, and has some areas to deal with. But it isn't a lame duck.

However it is in a competitive business with strong and sometimes unpredictable tides and one-off effects in both directions. That will cause volatility.

E&OE. I didn't read more than a page or two of the interims as I am not thinking of buying it. Or any other share just now.

All true. But 'exceptional items' like write downs do seem to appear on balance sheets with monotonous regularity. So as far as I am concerned a loss is a loss.

Thrugelmir

redbuzzard wrote: »

Voda is certainly past a peak, not necessarily the peak, and has some areas to deal with. But it isn't a lame duck.

Margins in the core business are in decline. As consumers in Europe look to cut their costs.

Consumers in Asia aren't so gullible. Paying far less for similar services.

Glen_Clark

chucky wrote: »

They are different types of expert economists.

How do you know his chair has got arms?

chucky

Thrugelmir wrote: »

Verizion is the only reason Vodaphone can afford its dividend payout.

Strip out Verizion and the remaining business has passed its peak.

I would be very careful taking advice or even taking anything from this character. It was only 2 weeks ago he was encouraging people to buy Vodafone shares.

Thrugelmir wrote: »

Vodafone is possibly the best option. As is turning into little more than a cash generator.

Make your own investment decisions, don't listen to these characters who make out they know what they're talking about. They don't, they're probably middle agee living in in the parents box room.

Don't take their advice, you will lose money!

Glen_Clark

Questor has just updated on Vodafone and recommends hold.
He believes the stake in Verizon will be kept as it is because Vodafone has got nothing better to do with the money. Sell offs/ mergers etc are just wishful thinking by the city spivs touting for business.

atush

I am a bit wary of Morrison's and how they are going to turn things around in their business.

Anyone know if the Ocado deal has gone thru?