Top Bulls Reasons To Buy — Vote below!

Add a New Bulls Reason

Company: Vodafone Group (VOD)
Current price:
Headline: (100 character max)
Analysis:
Cancel
100%
agree
14 votes

  Vodafone's benefits from economy's of scale

Vodafone's scale and scope around the world provide cost advantages, as programs can be developed in one market and then rolled out to the rest at minimal additional cost.

(100 character max) Cancel
100%
agree
3 votes

  International Growth

Vodafone is already the world's largest wireless service provider by market cap, but most of its current operations are concentrated in the low-growth, mature markets of Europe and the U.S. Vodafone's management saw the need for the company to expand beyond its usual geographic regions and has been making huge strides toward establishing a Vodafone presence in emerging markets. In May of 2007, Vodafone acquired a 67% stake of Hutchison Essar, the fourth-largest wireless company in India, for around $10.7 billion. This steep price tag was worth it, though. With a wireless penetration rate in the neighborhood of 13%, India is one of the fastest-growing mobile phone markets in the world. The Hutchison deal came a little over a year after Vodafone's acquisition of Turkish wireless company Telsim Mobil Telekomunikasyon Hizmetleri AS for $4.55 billion. The company's operations in Turkey have exceeded expectations, and its Indian business could very well do the same. Already, revenue from emerging markets has grown substantially, with a 37% jump in EBITDA from emerging markets from FY2006 to FY2007. As growth slows in Europe and the U.S., emerging markets will account for a steadily larger portion of Vodafone's sales and profits; its savvy acquisitions in key markets put Vodafone in a good position to take advantage of this shift.

(100 character max) Cancel
100%
agree
2 votes

  Vodafone is not a legacy operator

Because the firm is not an incumbent telephone operator, it has no legacy problems like underfunded pension and healthcare benefit programs, civil-servant employees, or regulations mandating universal telephone service.

(100 character max) Cancel
100%
agree
2 votes

  Vodafone has strong cash flow

Vodafone generates significant amounts of free cash, which it is using to increase dividends, make acquisitions, and invest in the business.

(100 character max) Cancel
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki