They now said they would be leaving the door open to repurchases...Good Idea if they believe they can buy back those freshly printed $47 shares at a discount If the stock price goes down... Much as CTL announced its share buyback as it announced its dividend cut...it softens the landing
Hey CD ..thanks for another expose of your total incoherence....Im going back to AT&T now better fundamentals and less wishy hopey investing then here at VZ
$2.84...Why is everyone rounding that up to $4? If they cant get that right, How much faith can we put in anything they say?
I think it is a bad move on yahoos part to pursue this practice, it really cheapens the yahoo experience and makes them out to be shills and hucksters...we already know we have to be very skeptical of yahoo fundamentals like eps and pe ratios. it appears anyone can create an unfounded headline mention a stock and then cut off the story and yahoo will post it...at leaste this is what it appears...if it is an advertisement please put it in a special field not the headline field..
Well at least some folks came up with their numbers ...%5 a share $5billion used to go to VOD now it will be going pay the dividends on the freshly printed 1.27 billion VZ shares paying 2.69 million a year...nice profit of 2,31 billion a year...divide that by 130 billion assuming no interest this buyout will be in the green in about 56 years.....see the real problem is Lowell isn't giving any real information out on this deal...so eventually it will come out on the quarterly ...and that is when the real shorts will come out
.40 cents (Lowell Mcadams Prediction)EPS per year per share times 4,136,764,000 shares of VZ
=1,654,705,600 gain from VOD per year ..divided by price tag of 130 billion dollars =78.6 years to pay off principle and this is best case scenario...thats my math ..what is your math????
once the real cost of the financing and share printing come out in the next few quarterly reports this stock will sink.. and the research reports wont be able to cover it up
What happens as Some investors are buying in here is they are hedging by shorting their shares, Shorting shares makes it profitable to sell lower then you bought for (it should be illegal. But it isn't) All lowel has to do to make VZ pop up is fill in the blanks.... VZ paid VOD Blank$ every year and VZ now gets to keep that money...the Blank is still missing and it seems the buyout was more of an ego control issues then a debit and credit issue that will produce any gains and hopefully no losses
Reply I was right about Windstream they never cut their dividendt and they never created new shares out of thin air. is that what you refer too..The same short tactics that drove the price down on windstream will be used here but it will be true not speculation, based on the way this new debt and shares will affect price of VZ shares..I also thought FE would never cut their dividend and crash their stock I was wrong their but you didn't mention that...you see CEOs don't always do whats right for shareholders look what I said about CTL and how they cheated their shareholders...CEOs aren't always doing whats best for shareholders...
and that isn't counting interest.. for the true story, we will have to wait until the new real earnings numbers come in...but the shorts are still propping VZ up until they get their foothold then they will be ruthless, take some off the table..there is allot more case for downside then upside because of this deal...if you want to speculate you should be in face book, bitcoins and netflix...not VZ
Best case scenario Lowell is right and he achieves 40 cents a year per share gain. on 4.16 billion shares That is an extra 1.66 billion a year..But It just cost VZ Share holders 100billion dollars and in 50 years that wont even cover the principal return on this cash
regardless of general growth in wireless....Verizon's pervious profitable 65% would have still grown 8 fold...the question is NOT the general direction of wireless...it is what was the net drain in cash from Verizon to Vodaphone and whether it overpaid for it. There is always a big downside to printing new shares...so what is the upside? it is simple math? why is it so hard to get a fix on the net gain per quarter expected from this VOD buyout? The CEO will speak tomorrow hopefully he wont speak in generalizations platitudes and hype..
I see what the cost and negative affect on current share holders is...Where did you get your numbers from? how much was VODs 45% taking from the VZ wireless side? Do you have any data on this or are you making assumptions?
I have yet to see any real numbers or a description of what Verizon gets for all this money spent..
from what I see Vod stock has gone up vz gone down...short days to cover way up on VZ down on Vod
the biilion and a half VZ shares created now dilute book value per share/ earnings per share/ and PE ratio
the dividend now has to cover another 3 billion a year in new dividends...I just want to know besides Lowell Mcaddams ego..how does this deal put more cash or increase share value? how much more earnings per share per quarter can we expect?...why is this deal good for share holders? we will see Monday I guess?
There should be SEC charges for the CEO at least he should be voted out for this..where is the responsibility to the share holders? FE predict they will be making 33% more earnings then in the previous two years, and the street believes that?.... so why cut the dividend now????
Sentiment: Strong Sell