Vodafone is adjusting to life post-Verizon. The UK-based telecoms company traded above 250 when the company sold its stock in Verizon Wireless as traders were promised a hefty dividend on the back of the deal; now the stock is trading at 216. Vodafone received $130 million for its shareholding in the wireless business so, even after an $82.5 billion cash return to shareholders, the company still has a large war chest to go on the acquisition trail with.
Vodafone has now fallen to fourth place in terms of global telecoms companies and, with surplus cash left over from the disposal of the US unit, it could be in position of acquire another firm or be acquired.
The stock is below the 200-day moving average of 222, which is worrying, but if market conditions in Europe improve and the company maps out a solid strategy for a ‘new’ Vodafone we could target 226.