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Saturday, December 15, 2012

Vodafone

As we finished the trio of communications, we mentioned that Verizon is co-owned by another company: Vodafone (VOD). Vodafone also focuses on wired and wireless connectivity, specifically prepaid phones, calling cards, postpaid services (such as Verizon's major plans), and world calling cards. This company was established in 1984 as Racal Strategic Radio Limited; in 1991, however, it RCR Ltd. separated and established a new, independent, and public company called Vodafone. In 1999, the company split 5:1 (GIANT growth). The group changed its name after merging with AirTouch Comm. in 1999 but reverted to Vodafone Group Plc. in 2000. In the latter year, Vodafone worked with Bell Atlantic to create Verizon Wireless.

Our records of Vodafone date to the late 1980's, but the company saw little growth until the Information Era and the split. By 2002, stocks were barely 30% of what they were in 2000, but they were again on the rise. With its holdings growing, VOD saw sustained growth until late 2007. The recession in 2008 again caused a harsh drop in stocks of about 50%. In 2009, Verizon completed its acquisition of AllTell and begin a minor stage of growth that capped around $30.

Lately, Vodafone has been slowing down and losing EPS. Late October witnessed the beginning of investing in the company with accompanying falling stock prices. In mid-November, Comcast planned to layoff 450 employees from NBC Universal; unfortunately, the loss of profits from one major company in the sector also shakes the rest and Vodafone's stocks fell. We predicted soon thereafter that stocks would increase again from $25 to $26, and to buy then to make money. Currently, Vodafone is headed back down after meeting a peak. Once stocks hit about $25 or lower, we strongly encourage investing in the company.

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