Vodafone might be a bargain investment, expert claims

Thu, 24 Jul 2008

Vodafone's decision to buy back £1 billion worth of shares could mean that it is a good investment, one expert has claimed.

According to Nick Raynor, investment advisor at the Share Centre, the move indicates that the firm feels it is undervalued and suggests it could be a bargain.

He said: "After the recent fall in the share price we still feel Vodafone is an attractive prospect for those investors looking for growth or indeed for income seekers, as it is now offering a yield of over five per cent."

The relatively small scale of the buy back could mean that it was done to reassure those who already have investments in the firm, he added.

Vodafone has already indicated that it expects to meet profit forecasts for this year, Mr Raynor points out.

Earlier this week, Richard Moore, manager of the Santander UK Growth Fund, claimed that inflation is now a bigger threat to investments than the credit crunch .

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