Vodafone Group Plc (ADR) (NASDAQ:VOD)

hop on and ride it to the top

too many things to like!

O.K. it's true. I'm not a large-cap kinda' guy. It was an accident, as I stumbled over Vodaphone perusing DutchMark's holdings. He's a first-class stock picker! Even wizards now and then have been known to replicate intellectual property.

What's to like? a 45% stake in Verizon, for starters. (See my Verizon pitch.) Doing a little research, I've also discovered that Vodaphone is an Inside Value pick. Oh, how did I come to be here?? Still, it's a big plus. There's going to be some dynamic forces acting on Vodaphone, for sure, over the next 5 years as they are arguably the biggest forerunner in the roll-out of 3G. One last interesting thing I read is that Vodaphone tries to operate only in countries where they have some sort of competitive advantage. How true that statement is, I'm not certain.

The big question?? How will the masses respond to 3G? If uptake is strong Vodaphone will do very well. If not, well....

Will Frankenhoff wrote a great little article on Vodaphone for the Motley Fool recently. If you would like to give it a read click below:

http://www.fool.com/investing/international/2006/12/11/time-to-answer-the-vodafone.aspx

Is now pending regulatory approval on buy of Indian cell phone company; if completed, Vodafone would have excellent capacity for expansion in what is likely to be a growing mobile phone market. Good experience in third world mobile phone networks puts this company in good position for continued expansion in emerging markets even as European market becomes saturated. Holds 45% stake in Verizon which gives company benefit from US market.

Number one or two player in many emerging markets, owns almost half of Verizon Wireless and over three percent of China Mobile. Great dividend and growth potential. What's not to like?

With the US very likely slipping into recession, time to diversify with some non-seasonal stocks ... VOD is one of 'em. Need a better reason, try NOT taking your mobile with you for just One day and you'd be back here voting with me.

I've owned Vodafone for about a year now. It has done very well and I plan to own it for quite a while longer. There never was a real moment where I thought 'now is a good time to add it to CAPS' so I figured after a little market-correction is as good a time as any.

Apart from being the best cell-phone carrier in the world, through its 45% stake in Verizon you get to benefit from that company as well. Verizon would like to buy back their stake, but so far Vodafone thought the price was not right, and I agree. Verizon is also a true cash-cow. In case Vodafone sells their Verizon stake it's maybe time to recconsider, but until then I think this is a good investment two excellent businesses.

Mark

I like their idea on using a cellphone to replace credit cards soon everyone will have a phone

Currently in the Asia Pacific market they are facing new competition from deregulated markets in island nations (Fiji just allowed Digicel in, Tonga doing the the same)

Undervalued, growing faster than the market despite a 30% PE discount

Global leader ready to start generating earnings.

Vodafone is selling off assets that do not help their company and be part owner of Verizon Wireless, they have a strong presence in the US and Europe.

Vodafone Group (Vodafone) is a mobile telecommunications company that has its operations spanning across Europe, the Middle East, Africa, Asia Pacific, and the U.S. through its subsidiary undertakings. Vodafone Group generates revenues through two business divisions: mobile telecommunications (95.6% of the total revenues during fiscal year 2006) and other operations (4.4%).

The company has recorded weak margins and returns in the last few years. Its operating margin and net profit margin for the period 2002-2006 were significantly lower than corresponding industry averages. Weak margins and returns indicate a higher cost base, and the company’s inability to manage assets profitably, which can adversely affect its long-term profitability and investor confidence.

The company has seen a drop in the average revenues per user (ARPU) and increase in churn rate across most of its key markets like Germany, Italy etc. In fiscal 2006, the company’s ARPU was down and the churn rate was high as compared to that of fiscal 2005. However, collectively, these are mature markets, which constitute a major part of the company’s total revenue.

Finally, Vodafone has a significant amount of indebtedness and most of it is long term.
For the past several years, the company has been incurring losses and as a result, the company might not be able to pay off its interest expenses. This could also put Vodafone at a relative disadvantage against its competitors, thus, impairing its ability to make investments and obtain additional financing for capital expenditures, acquisitions, or general corporate or other purposes.

The company largely operates in the matured markets of the world, which tend to have intense competition and relative pricing pressures, thereby, leading to squeezed margins. The company is no different from other telecom operators and hence it also poses a serious problem relating to its future-outlook.

Wireless rules!

Vodafone 5.4% div. Found in Smart Money Dec 06

sector is on the rise.

This is a cash generating machine!

Great company with good cash flows and a wonderfull underlying business

Cheap stock price for world's #2 wireless phone company. i'd buy it myself if it weren't for independence issues