“Amazingly dull” Vodafone PLC (LON:VOD) lacks visible signs of growth and the share has been sliding sideways for months - that, in a nutshell, is the view from chartist Zak Mir.
Mir, in a TIPS TV segment for Proactive Investors, says: “People can see that they [Vodafone] make money and everything else, but they can’t really see where growth is going to come from and until they do there’s no real excitement.”
He added: “I suppose [as an investor] you’re there for your dividend, and I suppose the hope that at some point there will have to be something done to liven it up.”
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That said, the technical analyst reckons telecoms share (priced today at 224.3p) has the potential to rally up to around 245p once there it marks a close above the 227p level.
“As you can see from the chart there’s a rising trend channel, a mildly rising trend channel, since the end of June. The only excitement there I suppose was the post Brexit vote dip, which was a dip to buy into,” he says.
“So, if pushed, one would probably say still the shares are a buy on a dip, rather than anything else.
“There’s nothing negative about it, but it looks like dead money compared to the market.”