Out Fox The $treet

Vodafone ( NASDAQ: VOD     ) shares dropped 5% on the fourth-quarter earnings release, providing investors with an ideal entry point. After the disposal of Verizon Wireless to Verizon Communications ( NYSE: VZ     ) , investors got a view into the stand-alone operations of the mostly European and India wireless operator and the market didn't like that initial view of Vodafone. It's important for investors to step back and assess the situation now. Hammered by Europe Results for Vodafone from the fourth quarter that ended in March were greatly affected by a European market that remains extremely weak. Organic service revenue in the region plunged 9.1% from the prior-year period, pushing down full-year revenue by nearly 4%. Read the full article here . Disclosure: Long VOD. Please review the disclaimer page for more details. 

For the fourth quarter of 2013, Verizon Communications ( NYSE: VZ     ) reported a surge in operating margins in the wireless sector due to lower subsidies for new accounts. The question is whether the wireless provider can continue generating these higher margins with Sprint Nextel  ( NYSE: S     ) and T-Mobile ( NYSE: TMUS     ) in customer-acquisition mode. While Verizon is generating solid gains in FiOS Internet and video segments, the company is increasingly dominated by its wireless division. In total, fourth-quarter revenue only gained 3.4%, but the company was able to hold expenses down. The combination sent operating margins surging, but the lack of spending to attract new customers could hurt growth in 2014 and beyond. Read the full article here . Disclosure: No position mentioned. 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. 

Last week Verizon ( VZ ) and Vodafone ( VOD ) reached the historic deal for Verizon to obtain sole ownership of the much coveted Verizon Wireless asset. Regardless of your position on the transaction, the stock action of the two stocks since the leak of the purchase discussions at the end of April tells the story. In the couple of years prior to the news of the talks heating up, Verizon had easily outperformed Vodafone. Remember that Verizon owns 55% of Verizon Wireless while Vodafone owns the rest. Partially due to the focus on the better performing US market, Verizon had easily outperformed Vodafone over that time period. This fact was greatly enhanced due to Vodafone being focused on Europe and emerging markets outside of the Verizon Wireless ownership. Read the full article at Seeking Alpha. Disclosure: Long VOD. Please review the disclaimer page for more details. 

The recent speculation that Vodafone (VOD) will sell the 45% stake in Verizon Wireless it doesn't own sent the stock surging 8%. As a prime member of the Net Payout Yields model due to a large dividend and a smaller buyback, the gains in Vodafone helped push the model up to over 21% gains for the year. This compares favorably to the 14.9% gain in the S&P 500 and places the model on a path for three straight years of easily surpassing the index. The below data comes from the model managed on Covestor . Annualized since inception (nearly 3 years now), the model has outperformed the market on average by 6.5% not including fees. Naturally future performance can not be guaranteed, but the model is a consistent grower as it consistently shifts into high net payout yielding stocks. Disclosure: Long VOD. Please see the disclaimer page for more details. 

The rumors are always ripe in the Verizon Wireless saga between 55% owner Verizon ( VZ ) and 45% owner Vodafone ( VOD ) . The news has gone from a Verizon buyout of Vodafone's share to buying all of Vodafone and now back to buying out Vodafone's share. The latest news leak is that Verizon has hired advisors for a bid of $100B for the Verizon Wireless stake. Could Vodafone with a $150B market cap really receive a $100B payout on its 45% stake? Actually the data suggests the value will be 20-30% higher. Read the full article at Seeking Alpha. Disclosure: Long VOD. Please review the disclaimer page for more details.