$23.65
0.39 (+1.68%)
Vodafone Group Plc (ADR) (VOD)
CAPS Rating:
The Company is a provider of voice and data communications services for both consumer and enterprise customers.
The Company is a provider of voice and data communications services for both consumer and enterprise customers.
Recs
This one's a bit more of a gamble because of all of the crazy regualations that occur almost daily in the EU. However, VOD owns 1/2 (yes... HALF) of Verizon Wireless and it is also one of the largest telecommunications companies in the world. Vodafone has cast a lot of nets and is fiercely targteting the Northern Africa, India, and China markets. Has anybody been to Japan, Mumbai, or Shanghai in the last few years? Nobody owns a cell phone... they own 3! Plus, cell phones are used for much more functionality (i.e. a cell phone can be used to pay for items in a vending machine) in those countries. Despite the obsticles they are navigating in th EU, VOD is wonderfully internationally diversified and they have the ability to make money while charging less for their services than other companies. One more thing... Vodafone hit a high of $40.87 in November and has since fallen 27%. Some of this drop is due to the EU regulations, but the vast majority is from the shockwave of the U.S. housing market crash. We rely on our cell phones... do you really think people will be cancelling their plans to save a buck? Nope. This one's a winner.
Agree that VOD is positioned well globally and should reap the benefits of those moves in the mid-term future. A tax lawsuit brought by India regarding their recent deal with Hutchison appears to be pushing the stock down at the moment (India is claiming more than $2B in taxes on the deal, though it doesn't appear to have footing for a verdict in their favor as neither company is based in India, and the case should end favorably for VOD)... I'm personally using this pullback as an opportunity to reposition in VOD at near its 52 week lows