Vodafone

I heard the other day that the conglomerate Vodafone isn't making any money. I was like, huh? Some newspaper suggested that VOD was not positioned to make any money going forward or something to that nature. I have been analyzing and discovering strengths and weaknesses in company's for over 13 years now, before as a broker and today as an interested capitalist. I decided to take a look at VOD and brush up on it. Firstly, VOD isn't well known here in the U.S. that's because it's primary presence is in the form of Verizon (it owns 45% of VZ). Secondly, VOD is a European play known for owning one of Europe's largest cell carrier in Orange.

What I want to do is focus on VZ first. VOD, as mentioned earlier is a 45% owner in VZ. VZ made over $7.1 billion and reported eps of $2.54 (click report above). Analysts expect that VZ will beat last years numbers by $500 million and $.02/share this year. As of August 1st VZ had a market capitalization of close to $94 billion. In essence this company isn't a tadpole looking to grow a tail. It's a beast already, a mature one at that.

Now VOD. This company has a market cap of $134 billion and has completed it's 2006 year with net income of $6.3 billion and eps of $10.11/share. Analysts predict that VOD will report net income of $5.7 billion (down from 06) and eps of $10.41 (an increase). Looks like the increase is based on a fewer amount of shares available (maybe from a company stock buyback).

Altogether, it's was an interesting exercise. It's been a while since I have looked at research in this space and I must say it's still intriguing to me. To really get down and dirty with what the future VOD potentially has will take me a few days to analyze and compare analysts opinions. There is one thing I will say, however, VOD is a very capable and formidable company with an impressive growth rate considering the size ($134 billion market cap). Albeit net income is expected to decrease for VOD eps is expected to rise nicely.

Ah the market...great money, never a full days work, and the money (said that already)!

By the way this blog wasn't written to intentionally discredit and/or upset anyone. Just wanted to see for myself if VOD was not slated to make money in the future...that's the case...SHORT! Maybe not.