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Posts Tagged ‘Vodafone Group Plc (ADR) (NASDAQ:VOD)’

Matt Schifrin’s Forbes “Buffetts next door” blog shines the spotlight on Tim Eriksen, one of Marketocracy’s best stock pickers (see his track record). Eriksen identifies a few stocks that I hold, and for the same reasons:

Vodafone (VOD). Vodafone is one of the world’s largest mobile communications providers in the world.  Vodafone owns 45% of Verizon Wireless, which it has not been getting any dividend from due to cash flow being used to pay down debt.  Verizon Wireless is expected to be debt free relatively soon, leaving the business with significant cash flow that can be distributed to the owners (Verizon and Vodafone). Shares trade at approximately 10 times earnings and the stock has a near 6% yield.

Reading International (RDI). RDI is in the business of owning and operating cinemas, as well as developing real estate in the U.S., Australia and New Zealand. RDI has 23 million shares outstanding and trades just under its book value of $4.85 per share.  It recently announced that it is selling a large property in Australia.  I believe the sale could bring close to $100 million, or a $50 million pre-tax gain.  The sale should increase book value by $1.50 per share.  More importantly the sale will provide the company with $80 million in cash, after taxes, which the company can use to reduce debt, develop other real estate parcels, and repurchase stock.

See the RDI archive here.

Long VOD and RDI.

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