Well I can tell you how I was enriched. I bought options last fall when VOD was at $32. I'm sitting on fat profits right now and continue to hold because I think both VOD and VZ have further upside to go.
As for your case: 1701 old VOD shares on 2/21 x $39 = $66,339
927 new VOD shares x $41.57 = $38,535
447 VZ shares x $47.58 = $21,268
$4.9208 x 1701 old VOD shares = $8,370
TOTAL = $68,173 which is MORE than you had on Friday 2/21.
How did you lose money ??? The cash portion of the special dividend still hasn't been paid yet
Why are you using 2/26 as your comparison date? The reverse split and VZ distribution occurred 2/24. If you compare your old VOD using the VOD closing price on 2/21 ($39), with your current VOD and VZ holdings using their 2/28 price ($41.57 for VOD, $47.58 for VZ), and then add $4.9280 per old, PRE REVERSE SPLIT VOD shares, regardless of what your uninformed financial advisor says, you will see you are up over 2% in one week.
Its 7.47p on the new post-reverse split shares. VOD went from paying out nearly all of its earnings to about half of its earnings, and CEO has said the dividend will be increased from this lower baseline.
The next dividend is 7.47p for ordinary shares or around $1.25 per ADR, which will have an ex-date in early June and a pay date in August. Vodafone has not announced its dividend policy beyond that point.
Yahoo's information for Vodafone is almost always wrong.
Vodafone fires back at AT&T's WSJ article. This is classic public negotiation through the media.
"Vodafone shareholders have proven surprisingly unfazed by Ono's eye-popping 7 billion euro-plus price tag, nor do they think Colao should just sit tight and wait for a possible bid from AT&T while his European business deteriorates.
"You cannot stop running a business while you negotiate possible deals," a top 20 shareholder in Vodafone told Reuters, when asked about the likely impact on an AT&T deal.
"Vodafone is in a weak position in Spain. Regardless of AT&T, if Vodafone wants to keep Spain it needs to put more money into capex and fix the business." "
Would be about $60/share. AT&T would issue $60 billion in debt and $90 billion in stock, but AT&T is less interested if VOD keeps buying cable companies.
I can see Colao's point of view though, AT&T needs to @#&* or get off the pot, VOD can't just wait around.
"And this is where it gets interesting for new investors. The new shares started trading Monday morning, but some analysts argue that the updated multiple on the stock is too low, indicating that Vodafone is too cheaply valued. It currently trades at 2.47 pounds a share ($4.12), well below for example Citigroup’s target price of £2.90.
. . .
The upside for investors? According to the UBS analysts, Vodafone should be able to offer a strong cash yield and large, twice-covered dividend in the long term. And if the cash flow improves even further, UBS said it could raise the target price to £3.30 from the current £2.75 target.
“If the market does not realize this value we wonder if another operator such as AT&T could,” they said in the note published last week."
"which equates to a 1.4% [gain] on VOD that was owned last Friday" How much do you usually earn over the weekend? The real gain was made by those who bought last fall or earlier
Thats entirely wrong. The entire distribution is taxable as a dividend and your original cost basis for VOD does not change. Your basis in the VZ shares is their fair market value on the distribution date.
My information is not wrong. You are looking at the futures adjustment memo, not the options adjustment memo. The new deliverable for options includes $492.80 cash and the strike price does not change.
Article focuses on negative exchange rate impact expected for British shareholders, but should be a positive for us ADR holders
From the Telegraph:
Vodafone is on course to return $23.9bn in cash to shareholders on March 4 and the 133,000 UK-based investors make up about 35pc of the total. With such a large sum of money any small change in the value of the dollar results in the cash payout dwindling.
The cash distribution will also send shockwaves through the currency markets on both sides of the Atlantic.
Analysis by Citibank expects the pound to appreciate following the sale as funds buy sterling and sell US dollars – about $2.4bn on the close of the February 21 and $5.1bn on the close of the 25, according to its estimates.
Citibank’s Nick Wills pointed to a similar impact in the exchange rate between the euro and sterling following the smaller corporate consolidation of Royal Dutch Shell shares. "
You don't get separate Verizon options, instead your current options become non-standard options and deliverable for each contract is adjusted to track what would happen if you owned 100 VOD shares.
Also, they filled in some more blanks:
1) 54 (New) Vodafone Group plc (VOD) American Depositary Shares
2) 26 Verizon Communications Inc. (VZ) Common Shares
3) Cash in lieu of 0.5455 fractional (New) Vodafone Group plc (VOD)
American Depositary Shares, if any
4) Cash in lieu of 0.3001 fractional VZ shares, if any
5) $492.80 Cash
"Vodafone Group Plc (“Vodafone”) announces that the scheme of arrangement and the reductions of capital of Vodafone relating to the disposal of its US group whose principal asset is its 45% interest in Verizon Wireless (“VZW”) and the Return of Value were today approved by the Court. The VZW Transaction and Vodafone’s related acquisition of the outstanding minority stake in Vodafone Italy have now completed.
Vodafone confirms that the total cash amount to be returned to shareholders pursuant to the Return of Value will be US$23.886 billion, equivalent to US$0.49 for each existing ordinary share. As noted in the announcement on 19 February 2014, this will be in addition to the distribution of Verizon common shares to eligible shareholders.
Where shareholders are due to receive their cash in sterling or euro, the exact amount received will depend on the exchange rates obtained in the markets during the week commencing 24 February 2014.
The consolidation of Vodafone’s ordinary shares on the basis of a ratio of 6 new ordinary shares for every 11 existing ordinary shares will take effect at 8.00 a.m. (London time) on 24 February 2014. Once the share consolidation has completed, Vodafone will have 26,438,136,936 new ordinary shares in issue (excluding 2,373,727,362 ordinary shares held in Treasury)."