Out Fox The $treet

Vodafone is rallying similar to early 2014 due to another potential deal. The European focused wireless operator has an interesting opportunity for a combination with Liberty Global. The details suggest the operational overlap might not provide the necessary synergies and benefits expected of such a large-scale deal. The recent stock surge of Vodafone (NASDAQ: VOD ) toward $40 has a similar feeling to the run with the sale of Verizon Wireless to Verizon (NYSE: VZ ). In both cases, the stock made a rapid rise within a few months from the low $30s. The question is whether Vodafone holds and even builds on the gains this time. Read the full article on Seeking Alpha. Disclosure: Long VOD. Please review the disclaimer page for more details. 

Despite a huge run-up in the stock following the sale of Verizon Wireless, Vodafone ( VOD ) still offers a lot of value to shareholders. The stock has long been associated with the 45% investment in the successful American wireless company, but Vodafone has a whole European business to offer investors that is often overlooked. Though Vodafone can be difficult to value considering all the moving parts with the deal, it appears one can value the company based on removing the assets being returned to shareholders and the forecasted free cash flow for the remaining businesses in 2014. The valuation might surprise investors considering the large run over the last few months based on the $130 billion offer from Verizon ( VZ ) . Read the full article at Seeking Alpha. Disclosure: Long VOD and T. Please review the disclaimer page for more details. 

Back in September, Vodafone ( NASDAQ: VOD     ) agreed to sell its 45% stake in Verizon Wireless to majority owner Verizon Communications ( NYSE: VZ     ) for the astonishing amount of $130 billion. The deal has sent Vodafone soaring to a valuation of $180 billion, and in the process, reduced the dividend yield to around 4.2%. Outside the Verizon Wireless investment, Vodafone is a large wireless provider in the major European countries of Germany, the Netherlands, U.K., Italy, and Spain along with select investments in Africa and Asia. The company has roughly 500 million wireless subscribers around the world making it one of the largest mobile carriers. With the Verizon Wireless deal heading toward completion, the market is starting to wonder if Vodafone can justify its current price. Read the full article here . Disclosure: Long VOD. Please review the disclaimer page for more details. 

Great chart from Calafia Beach Pundit. If the Euro was so weak, than why has it held up so well against the greenback? Sure the Euro isn't near the peak around $1.6, but it clearly isn't anywhere near the sub $1.20 it traded below for the first several years. One possible answer is that traders expect some of the weak participants such as Greek to leave the Euro, therefore leaving the stronger countries like Germany that would cause a rise in the Euro. Other scenarios are that the US dollar has been just as weak. Either way, the demise of the Euro seems very premature especially when looking at this chart. If that was about to happen wouldn't it sink below parity and fast?

The Monster Employment Index Europe demonstrated year-over-year growth of 18 percent. Thought Europe was headed to a massive recession? Ok, the index is actually flat to down since peaking at 140 in June. Clearly the trend is not optimal, but it's not as dire as most in the media would suggest. The top growth areas were Engineering, Manufacturing, Transport, Telecommunication, and Real Estate. Clearly Europe lacks the mining and oil exploration growth that the US is seeing. This has and will be a major hamper to their economy as growing commodity prices can't be escaped via production increases. The regional data is much more telling. Germany continues to soar up 37% YOY while all other regions have seen major declines since June. Even Belgium, France, Netherlands, and Sweden have seen declines. Not surprising to see Italy drop, but it does highlight why Germany wants the European Union to survive. The weakness in the other European countries is holding down the euro and m...

Well, clearly stronger then the market thinks based on the markets last week. People still don't seem to understand that Greece had fraudulent government deficit reports and a economy in decline that is creating its need for a bailout. Other European countries like Spain and Portugal are recovering and though they face numerous issues they aren't nearly as bad off as Greece. Don't take my word on it though. Listen to the Chief Economist of JPMorgan (JPM). It actually surprised me that Europe as a whole is doing this good. PMI in the mid 50s and economic growth in the 2-4% range. Also don't forget that a lower Euro helps the export sector.