VOD cover

[Arborbridge]

I probably haven't been attending in class again, but I notice VOD's cover has jumped from 0.5 to 2.4, with the eps forecast revised to 59p from 5p. Pre-tax from negative to 2.4 billion.

Is this correct or a glitch, anyone know?

Arb.

[ReformedCharacter]

Judging from the figures here:

http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/GB00BH4HKS39GBGBXSET0.html

It's a glitch!

RC

[Arborbridge]

Aren't they all historic numbers? Is there a forecast there I haven't found?

Arb.

[Deev8]

... with the eps forecast revised to 59p from 5p.

That's the forecast that DigitalLook are currently showing. I would be inclined to wait a couple of days to see if that figure "sticks", or turns out to be an error that is corrected.

Dave

[Gengulphus]

I probably haven't been attending in class again, but I notice VOD's cover has jumped from 0.5 to 2.4, with the eps forecast revised to 59p from 5p. Pre-tax from negative to 2.4 billion.

Is this correct or a glitch, anyone know?

Looking at http://www.digitallook.com/equity/Vodafone_Group, which is presumably your source, that forecast EPS of 59.1p is accompanied by a forecast P/E of 36.5 - which implies a forecast share price of 59.1p * 36.5 = 2157p. So I'd say either ridiculously optimistic forecasting or a glitch - and my money's on the glitch!

A plausible glitch is a misplaced decimal point - forecast EPS of 5.91p would not be too far from what I last remember seeing, and would produce a sensible forecast share price.

Gengulphus

[Arborbridge]

Sure enough, the glitch seems to have worked its way out, bringing the cover down to 0.6.
Even with the expected eps growth, it'll take a few years to bring the cover back to 1, unless something dramatic is in the pipeline.

Arb.

[idpickering]

Sure enough, the glitch seems to have worked its way out, bringing the cover down to 0.6.
Even with the expected eps growth, it'll take a few years to bring the cover back to 1, unless something dramatic is in the pipeline.

Arb.

Not withstanding the cover issue, is anyone here a buyer currently? Not me just now, but it may be due a top up in a few months.

Ian.

[kempiejon]

Ian, I hold, cover sub 1.5 doesn't get through my screener. I do except for Utilities and one could hear an argument that telecoms is pretty utility like but even so, sub 1 cover is a marker that the dividend may not be safe. My gut feeling is that VOD will be ok and keep the income coming and that yield is high but what's the point of having guidelines and then ignoring them = VOD is not a HYP buy for me.

[idpickering]

Ian, I hold, cover sub 1.5 doesn't get through my screener. I do except for Utilities and one could hear an argument that telecoms is pretty utility like but even so, sub 1 cover is a marker that the dividend may not be safe. My gut feeling is that VOD will be ok and keep the income coming and that yield is high but what's the point of having guidelines and then ignoring them = VOD is not a HYP buy for me.

Wise words indeed kempijon. And of course you are correct. We'll see how I feel about this I guess.

Ian.