Wednesday, September 8, 2010

CHL and VOD



CHL broke a well-defined support level on high volume today, as Vodafone (VOD) said it is selling about $6.6 billion worth of shares of the company.

While I can't blame Vodafone for selling, I think it's crazy that they are going to use the proceeds for a share buyback. Well, 70 per cent of the proceeds, according to the newswires. This is a company that is like $50 billion in debt.

Somebody should look into this Vodafone company. $50 billion in debt, and they're out retiring shares and paying out 7 per cent dividends? I guess I'm old fashioned, but that just doesn't seem right.