More good news for Eircom Shareholders- Not!

Beastie Boy

More good news for beleagured eircom sharholders today with the nose dive in the value of Vodafone shares!!
http://news.bbc.co.uk/hi/english/business/newsid_1920000/1920832.stm

Will this become an election issue I wonder. After all, the yanks always say its all about how much money you've got in your pockets and after this alot more people have a lot less- I just wonder to myself will the voters remember how the Govt. backed the whole flotation and crazy initial share price.

Vodafone shares plumb new depths


Shares in Vodafone, the UK mobile phone giant, have continued their descent, reaching new three-and-a-half-year lows.
The shares ended at 120p, down one penny from Tuesday's close but up slightly from the 116.5p level touched during the day's trade.

They are now at their lowest level since October 1998 and down about 70% from their March 2000 peak.

The falls have been sparked by investor worries that the firm is about to write off assets once valued at billions of pounds.

Underestimated

The latest declines followed a Tuesday decision by analysts at investment bank ABN Amro to drop by 31p, to 149p, their estimate of a "fair value" for Vodafone shares.

Investors have underestimated the competition in the mobile market in the medium-term, said the bank, which retained its "add" rating of Vodafone stock.

A report showing a respectable performance by NTT Docomo, rival to Vodafone-controlled Japan Telecom, further hurt market sentiment.

Investors have been braced for a decline in Vodafone shares since the weekend, when a series of reports said Vodafone was set to admit it overpaid by billions of pounds during a takeover spree in the late 1990s.

Rise and fall

The acquisitions helped Vodafone rise from its birth in the 1980s to Britain's biggest company in January 2000.

The firm cemented its position with an audacious £79bn takeover of Germany's Mannesmann a month later.

Vodafone shares hit a closing peak of 399p in March 2000.

When the dot.com bubble burst a week later, the slide hit not just the price of Vodafone shares but, as the company has found, the value of the companies it took over as well.

Vodafone, in its half year results released in November, cut £4.5bn from the value of assets.

Analysts are expecting write downs of £2bn-10bn to be made when the firm on 28 May reports fourth-quarter results.

sceptre

Interesting (not too unexpected though) - Vodafone shares have been expected to take another hit.

Like I've said before, I've some sympathy for Eircom shareholders who got caught out (but then I do know a few people who did make money from the shares). Personally, I looked at the IPO price and thought it too high (and that was before Eircell turned out to be worth twice as much as everyone seemed to think it was)

Share are still like trousers - they go down as well as up. Anyone who hasn't sold their Vodafone shares by now is asking for trouble.


I'm a little more interested in the large number of people who still haven't asked Valentia for their money and are now in a situation akin to having their money in a bank that doesn't pay any interest and in a few weeks will ask them for a handling charge if they decide they want their money back at that point. There share won't move in price, there will be no dividend and they have no voting rights. Since Valentia hit the magic 80% very few additional shares have been redeemed. Is there something I'm missing?

Victor

Originally posted by sceptre
I'm a little more interested in the large number of people who still haven't asked Valentia for their money and are now in a situation akin to having their money in a bank that doesn't pay any interest and in a few weeks will ask them for a handling charge if they decide they want their money back at that point.

They are paying a tiny amount of interest (about 0.7% when I got my shares recently), but yes there is a risk on the charges side.

b20uvkft6m5xwg

by Victor
yes there is a risk on the charges side.

Indeed
The provision for admin charges, where shares are Compulsorily purchased is in section 70 (I think) of the companies act 1990.

AFAIK the amount is not specified but I wouldn't wait around to see what they deem a fair amount for administering the holding onto your shares

Xterminator

A number of people los their hard earned shillings on this 1.
So I can understand the bitter fellings.

But anyone who buys shares knows its risky.

Whole fortunes can be lost or gained in a day.

A the end of the day the advice that the shares were highly priced was out there in the public domain.

To make it an election issue is a simple vote garnering ploy by the opposition.

X

Culchie Boy

oh well we eircom shareholders can blame Mary O 'Rourke for destroying our life savings that we invested in Eircom.

Regards Culchie Boy.

b20uvkft6m5xwg

Mary O'Rourke had nothing to do with YOU signing a check and posting it to buy Eircom Shares

Edit that remark above or I WILL
Not only is it offensive but factually incorrect

GoneShootin

Culchie Boy, stop making us Culchie Boys looks bad.

Ive shares, and im gona leave em in there for the rest of my life. and pass em on to my spawn. who knows wat the future brings

Culchie Boy

My apoligies to those who i may have offended. But she was responsible for setting the share price too high.

Regards Culchie Boy.