Vodafone Group plc (LON:VOD) had its price objective raised by Deutsche Bank from GBX 250 ($3.93) to GBX 255 ($4.01) in a research report released on Friday morning. Deutsche Bank currently has a buy rating on the stock.
Best bet would be Liberty or a percentage of Liberty. Pay what John wants and VOD will have a powerhouse in EU and US over it's competitors. Within 4 years VOD can make up in revenue for Liberty's cost. And! A whole other market would be satellite radio. Liberty is eyeing up SIRI.
Global service. Only big reason for MVNO entry into a highly competitive environment. Global service no other provider can offer. In a growing world of globalization, the corporate mobile service plans Vodafone can now market with U.S. coverage included is an unparalleled global coverage for multinational corporations. Makes for an easy sales pitch against a T or VZ offering to potential clients.
Australia or some select eastern EU blocks appear to be the only likely sales. The mobile banking presence in Africa and India now portrays the intention to maintain heavy presence in those markets for the long term. ME is a choppy mess with some of those being markets with VOD and a former gov't/state controlled telecom. One other item to consider the MVNO reasoning is the mobile banking/wallet product can be introduced in the states using TMUS network. Believe that is the sleeping giant and VOD has found a way to bring it to the U.S.
I am not so sure. Vodafone just exited the US market and most likely at the peak of US Telecom pricing. With Softbank breathing new life into Sprint and Deutsche Telecom propping up T-Mobile competition is going to be fierce; this competition has already been seen via aggressive price declines for mobile plans. VZ and AT&T have both commented (VZ I believe just this past week) pricing will lead to a softening revenue and bottom line. The question is why would Vodafone re-enter a market they just exited? And to join the fourth largest carrier after just ending a successful JV with the number one carrier? This does not make sense and is counter to the on-going strategy. IMO Vodafone is all about building a unified European telecom network that provides quality bundled telecom and entertainment services to Europe... India, South Africa, and the ME that is all just added gravy, and pretty decent growth I may add. However, as I stated in a post in Oct 2013, I wouldn't put it past current management to make a decision to sell a chunk of some of these foreign assets, provided the number offered is acceptable. I also maintain VOD will not be taken out in its entirety.
Don't Be Surprised If Vodafone Takes Its T-Mobile Partnership One Step Further
Google the Seeking Alpha title above to read article.
At the right price. The debt under Liberty is too big to merit much of any premium though and a significant premium is exactly what Malone would demand. Debt under Liberty likely the reason Colao indicated VOD only interested in the German assets. He could buy those and VOD avoids the full debt assumption that a full bid would encompass. LTE-A will take care of a lot in U.K. with CWW for data backhaul. Liberty is a non-starter because of the debt and the assumption a significant premium would be demanded. Same reason VOD wouldn't want BT...pension liabilities. Otherwise BT would be a prime target...
Very much agree inomorethanudo. That was pretty much my point. VZ Wireless will do well going forward even with consideration of the current price war.
i think both companies came out winners on the deal- vod needed cash at the time and vz, with 55% control, didn't want to have verizon wireless pay dividends- now that vz has 100% of verizon wireless its free to grow the business as it sees fit- in the meantime, vod got enough cash to reward shareholders, a lot of verizon stock which it passed on to shareholders and enough cash to restructure its business the way it wants to- it was a win win, not a q sum transaction
I beg to differ. VZ Wireless is about to become a nationwide IP TV provider as it launches the product in 2015. Sure, existing cash flow has taken a hit but VZ Wireless set for strong growth as it adds to its product offerings. Sometimes you have to do more than surface scratching. VOD very well could have retained ownership in the biz but the proceeds have allowed for huge capital outlays in acquisitions, builds, and upgrades. VOD traded off good potential in mobile TV under VZ Wireless in order to become a much, much stronger EU competitor. For the price, VOD did well only because of what they are doing with the sale proceeds to bolster its business. Otherwise, I believe VOD made an error selling its VZW stake.
As an MVNO is concerned, does their network coverage meet the needs of VOD. It appears it will in late 2015 when TMUS is scheduled to complete the build. VOD could care less about the TMUS CEO appearance. VOD exploiting their network for international business customers.
Vodafone In the third quarter, typically the strongest period, some operator's revenue growth rose at its quickest pace for over two years. Vodafone's (VOD) data volume jumped by 64% year-on-year, video traffic swelled by 88%, with a rise in Youtube and Facebook traffic volumes, at 130% and 110% respectively. But the industry has upside, with revenues in the UK trading 11% below its peak (see chart).
As 4G is quickly taken up, the pricing power of mobile operators is expected to improve, with wholesale price discounts to retail narrowing, hitting mobile virtual network operators (MVNO). Capex is also set to rise and the industry is poised to see more M&A activity.
"We see Vodafone as a key megacap play on European 4G where it appears to have got off to a strong start," says Citi. "We consequently see Vodafone as a good way to play a 4G-driven recovery in European mobile, and reiterate our Buy rating / 250p target price." Citi expects sales of £42.3 billion in 2015 and £6.9 billion of pre-tax profit, giving earnings per share (EPS) of 7p. At 218p, Vodafone shares trade on 31 times forward earnings, a premium to rivals, and a 6.4 times EV/EBITDA ratio.
Hope you're right mate! The CEO of T-Mobil was on tv/internet last spring saying he will greatly improve the company's image and mapping cell areas in the next year or two. What he needs to do first is get haircut! Another joy-boy running that company.
The real ones here know how to find the VOD investors page and get it from the direct source. Dividend only paid twice a year and not in even amounts. ADRs have a very minor conversion fee also disclosed there as well. Do your DD.
Sentiment: Strong Buy
Just looked back at a bar chart of that day and I am finding a high of 208.45 at the close. I would tend to think the gap needs to close. It took over a year for the big one to close. How long it takes is SWAG. We were so close today before the huge run near the close. Apparently VOD valuation should be higher with the rumored price 19.5B for EE by BT.
Smalls, VOD almost closed the gap up on 11th Nov. From my chart, to close the gap VOD needs to drop to 207.95p, today’s low was 210p before bouncing to close at 219.45p……we may still have to close the gap, would you agree?
TMUS network coverage has been improving greatly and the third party tests have shown TMUS network has surpassed Sprint and is improving swiftly. TMUS will COMPLETE its LTE build in late 2015 to 300 mil population (316 mil U.S. population). Cell phones 2nd rate? LOL They are just fine. Bad choice partnering with T or TMUS? VOD is partnering with TMUS (T-Mobile), not T (AT&T). TMUS is hungry so I would imagine VOD negotiated favorable terms. Better than they would have extracted from VZ or T.