Verizon and Vodafone near record deal.

Back in February, I wrote about a safe investment with a great upside, Vodafone (VOD).  I conservatively valued VOD at $180 billion. In that valuation, I had valued VOD’s 45% stake in Verizon Wireless at $80 billion. It seems my estimates were off as it looks like Verizon is finally (after much speculation) buying VOD’s stake in Verizon Wireless for $130 billion.

I expect VOD to go up even more on Tuesday because at this price it is still very cheap on a sum of parts valuation. Hopefully, investors get a big special dividend. I continue to hold.

Disclosure: I am long VOD