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Vodafone shares

  • 04-10-2008 8:08pm
    #1
    lushballs
    Registered Users, Registered Users 2 Posts: 196 ✭✭


    If vodafone have so many customers and make so much money why have our shares not increased much in value?


Comments

  • #2
    ranger4
    Registered Users, Registered Users 2 Posts: 1,370 ✭✭✭ranger4


    The eu directive to reduce roaming and text charges must be one factor that with the downturn with phone sales must be hurting profits thus lowering share price.


  • #3
    Mikel
    Closed Accounts Posts: 863 ✭✭✭Mikel


    lushballs wrote: »
    If vodafone have so many customers and make so much money why have our shares not increased much in value?
    What matters is how much they make per customer compared to what it costs them per customer. All the companies overpaid heavily for their licenses, i remember reading that it worked out at thousands per customer.
    The market is saturated, everyone has a mobile by now so there's not many potential new customers, and the market is very competitive so they can't raise their prices.


  • #4
    failsafe
    Registered Users, Registered Users 2 Posts: 569 ✭✭✭failsafe


    The shares prices did/do reflect the fact that the company is making lots of money from lots of customers. For the share price to rise, they'll need to start making more money from their customers. Call rates have been dropping all accross Europe, and now with the recession kicking in fears are that people might stop paying their bill, using the phone less etc.

    Share price is rarely about what's going on in the present, with rises and falls depending a lot on what's expected in the future.


  • #5
    Baird
    Closed Accounts Posts: 260 ✭✭Baird


    lushballs wrote: »
    If vodafone have so many customers and make so much money why have our shares not increased much in value?

    Thats not how stock markets work.
    Prices reflect what the future earnings of a company are and not their current earnings.
    Vodafone had a recent spanish acquisition that hasnt worked well for them with
    huge exit rates and a massive slowdown in usage.
    The fear is the recession about to hit Europe will be worse which will further
    erode profits and thats why the companys share price is falling.
    Good company and a cheap price but it will be cheaper so wait.


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