64 replies to this topic

[ThatBlackGuy]

Share price has been stuck within a range for a while now. However the dividend yield still makes this share attractive to hold despite being lower than expectations. If I am not mistaken it is one of the highest DY in the market amongst the large and mid caps

 

Say goodbye to that yield.

[Saints]

Share price has been stuck within a range for a while now. However the dividend yield still makes this share attractive to hold despite being lower than expectations. If I am not mistaken it is one of the highest DY in the market amongst the large and mid caps

[gamma]

Oh, and monkeys charge far lower fees.

Spot on.
Anal-lysts are as likely to hit the target as a monkey with a gun.

[gamma]

Spot on.
Anal-lysts are as likely to hit the target as a monkey with a gun.

Nope, not related to Neotel but to an unrealized expectation of earnings, 2.8% increase was announced as opposed to market expectations of 8.6% by analysts (825 div instead of 845 expected), which goes to show the so called analysts have as much idea of what is going on as we do - Zilch

[BBW]

 

Hidden in the open @ http://www.ig.com/za...nancial-markets

 

But to get the juicy stuff you must log in, or in other words have an IG account (doesn't everyone - LOL), here is a copy paste of the blurb

 

UPDATE 2-S.Africa's Vodacom prices Neotel deal at $676 mln

 

19 May 2014 10:23

• Deal gives Vodacom large fibre optic network
• Vodacom also reports slight rise in FY profit
• Vodacom shares down 1.5 pct, Tata up 3.9 pct

(Adds quotes, details)

By Helen Nyambura-Mwaura

JOHANNESBURG, May 19 (Reuters) – South African mobile operator Vodacom Group <VODJ.J> said on Monday it had reached an agreement to buy unlisted telecoms firm Neotel in a deal worth 7 billion rand ($676 million) although it would not assume any of the company's debt.

Neotel, majority-owned by India's Tata Communications <TATA.NS>, is South Africa's second-biggest fixed-line phone operator and gives Vodacom a large fibre optic network for high-speed Internet.

"Effectively, they have to settle the debt. We are not going to take over existing debt," Vodacom chief executive Shameel Joosub told reporters.

Both Vodacom and Tata declined to divulge further details of the agreement.

Neotel had net debt of 4.815 billion rand as of end-March, according to Tata Communications, which holds a 67.32 percent stake in the company.

Vodacom, which also reported a slight increase in annual profit on Monday, said it would fund the acquisition through available cash resources and existing credit facilities.

It posted a 2.8 percent rise in full-year earnings after bagging more subscribers across its African operations in Tanzania, Democratic Republic of Congo, Lesotho and Mozambique.

Its diluted headline earnings per share totalled 894.4 cents in the year to end March, from 870.2 cents a year ago.

Thirteen analysts polled by Reuters predicted an 8.6 percent rise in earnings per share to 945 cents. It declared an 825 cents per share dividend, lower than the 848 cents payout analysts had expected.

South Africa's dominant mobile phone services provider said it increased users by nearly 14 percent to 57.5 million, with the most growth coming from other African businesses where the active customer base rose by nearly 22 percent to 26 million.

Vodacom shares were down 1.5 percent, lagging Johannesburg's Top-40 index <.JTOPI>, which was up 0.25 percent at 0755 GMT.

Shares in Tata Communications, which last week reported its first consolidated annual net profit in five years, rose as much as 7.6 percent after news of the Neotel deal. The shares were trading 3.96 percent higher.

(Addtional reporting by Tiisetso Motsoeneng in Johannesburg and Devidutta Tripathy in New Delhi; Editing by Ed Cropley) ((helen.nyambura@thomsonreuters.com)(+27 11 775 3034)(Reuters Messaging: helen.nyambura.thomsonreuters.com@reuters.net)

Keywords: SAFRICA VODACOM/

 

Cool, so REUTERS it is...thanks M

[M e r l i n]

Hidden in the open @ http://www.ig.com/za...nancial-markets

 

But to get the juicy stuff you must log in, or in other words have an IG account (doesn't everyone - LOL), here is a copy paste of the blurb

 

UPDATE 2-S.Africa's Vodacom prices Neotel deal at $676 mln

 

19 May 2014 10:23

• Deal gives Vodacom large fibre optic network
• Vodacom also reports slight rise in FY profit
• Vodacom shares down 1.5 pct, Tata up 3.9 pct

(Adds quotes, details)

By Helen Nyambura-Mwaura

JOHANNESBURG, May 19 (Reuters) – South African mobile operator Vodacom Group <VODJ.J> said on Monday it had reached an agreement to buy unlisted telecoms firm Neotel in a deal worth 7 billion rand ($676 million) although it would not assume any of the company's debt.

Neotel, majority-owned by India's Tata Communications <TATA.NS>, is South Africa's second-biggest fixed-line phone operator and gives Vodacom a large fibre optic network for high-speed Internet.

"Effectively, they have to settle the debt. We are not going to take over existing debt," Vodacom chief executive Shameel Joosub told reporters.

Both Vodacom and Tata declined to divulge further details of the agreement.

Neotel had net debt of 4.815 billion rand as of end-March, according to Tata Communications, which holds a 67.32 percent stake in the company.

Vodacom, which also reported a slight increase in annual profit on Monday, said it would fund the acquisition through available cash resources and existing credit facilities.

It posted a 2.8 percent rise in full-year earnings after bagging more subscribers across its African operations in Tanzania, Democratic Republic of Congo, Lesotho and Mozambique.

Its diluted headline earnings per share totalled 894.4 cents in the year to end March, from 870.2 cents a year ago.

Thirteen analysts polled by Reuters predicted an 8.6 percent rise in earnings per share to 945 cents. It declared an 825 cents per share dividend, lower than the 848 cents payout analysts had expected.

South Africa's dominant mobile phone services provider said it increased users by nearly 14 percent to 57.5 million, with the most growth coming from other African businesses where the active customer base rose by nearly 22 percent to 26 million.

Vodacom shares were down 1.5 percent, lagging Johannesburg's Top-40 index <.JTOPI>, which was up 0.25 percent at 0755 GMT.

Shares in Tata Communications, which last week reported its first consolidated annual net profit in five years, rose as much as 7.6 percent after news of the Neotel deal. The shares were trading 3.96 percent higher.

(Addtional reporting by Tiisetso Motsoeneng in Johannesburg and Devidutta Tripathy in New Delhi; Editing by Ed Cropley) ((helen.nyambura@thomsonreuters.com)(+27 11 775 3034)(Reuters Messaging: helen.nyambura.thomsonreuters.com@reuters.net)

Keywords: SAFRICA VODACOM/

 

 

 

 

 

 

 

 

[BBW]

Nope, not related to Neotel but to an unrealized expectation of earnings, 2.8% increase was announced as opposed to market expectations of 8.6% by analysts (825 div instead of 845 expected), which goes to show the so called analysts have as much idea of what is going on as we do - Zilch

Where does one get this info Merlin, of what the market/analysts' expectations are of a share/company (results)?

[M e r l i n]

Nope, not related to Neotel but to an unrealized expectation of earnings, 2.8% increase was announced as opposed to market expectations of 8.6% by analysts (825 div instead of 845 expected), which goes to show the so called analysts have as much idea of what is going on as we do - Zilch

Edited by M e r l i n, 19 May 2014 - 01:44 PM.

[Procrastinator]

Trending down this morning so I guess that's the answer.

[Procrastinator]

Ok so vodacom buying Neotel for R7bn, good or bad?

[Bread]

Dammit, I always forget about that.

 

Thanks, HDB. What are the dates for the rest of the year?

[HDB]

Another 833 000 odd shares went through in a single trade at 12615 which was about an hour ago. Just rechecked now and there's no record of that except for a single trade of 167 000 shares that went through at 12583. I wonder what's going on.

auction closedout

[Bread]

Another 833 000 odd shares went through in a single trade at 12615 which was about an hour ago. Just rechecked now and there's no record of that except for a single trade of 167 000 shares that went through at 12583. I wonder what's going on.

[Bread]

Anybody know anything about a transaction of 200 000 shares at 11950 on Monday 17th February 2014?

[WINH]

So this could be about any cellular operator, but does anyone see a threat from the apps that turn voice into data ie voip, like "viber" as well as the explosion in the SMS data apps like "what's app", me and my family and friends definitely spend a lot less time on the "phone " than we used to.

I appreciate that the cell company's still sell the data but not at the same costs or margins of the voice charges.

Surely this will hit the earnings of these companies, any views?

If you notice, voice is set to lose it's place as the leading source of revenue for mobile operators. With the influx of Smart phones, and the growth projections, data will soon become the biggest revenue generator. So this will account for a switch, as opposed to an elimination of revenue. and besides, these apps have been around for a while now, but we still see these companies growing their profit margins, so they're able to offset whatever they lose as a result of lower voice usage. Also consider that most major companies are putting their employees on contracted phones, and as a mode of communication in business, voice will not be replaced any time soon.

 

Also, if you look at the interview done by Money web with the CEO of VOD, the plans are basically to push network coverage to a 100%, to improve network quality to handle the increase in call volumes resulting from the expected decrease in call rates. Logic says, the low rates will encourage people to talk longer on the phone, so no big losses in revenue. VOD is in talks with Neotel, this, together with increased smart phones distribution could bring about the growth in data usage required to keep the company afloat during the tough times ahead.

 

And i know MTN will come up with something as well, to counteract these coming cuts.I love the Mobile Tech as a sector, and i believe you'd do well to stick with any of the players in this space.

[Procrastinator]

So this could be about any cellular operator, but does anyone see a threat from the apps that turn voice into data ie voip, like "viber" as well as the explosion in the SMS data apps like "what's app", me and my family and friends definitely spend a lot less time on the "phone " than we used to.

I appreciate that the cell company's still sell the data but not at the same costs or margins of the voice charges.

Surely this will hit the earnings of these companies, any views?

[WINH]

C'mon VOD, not when today is the LDT.... gotta push up, where are the div hunters?

Edited by WINH, 22 November 2013 - 12:01 PM.

[soutie]

Looking to make an attempt to crack R130 today....... well me has me fingers crossed.....

[gamma]

my theory is that he blew a fuse after months of relentlessly attacking vodacom they put out a bloody good set of results as if he was some sort of a flea being shook off a dogs back.

 

anyway, hope its not serious. he's a good leader and SA needs all of em

[soutie]

Cell C says Chief Commercial Officer Jose Dos Santos will act as CEO until Alan returns to work. For any further information "Please call me" Dos Santos added.