wow she's had enough she's blowing!, page-5

Credit markets are the key to this company. The 3m Libor is at 0.99% the lowest in its history. This is an indicator that credit markets are ever so slowly cracking open. In the US funds are VERY cheap and once this stress testing etc is long forgotten, banks I think are about to start lending again.

The problem I have is will they learn their lesson. Time will tell, but I doubt it.

Once the US markets open, they will then look elsewhere for greater returns on their cash. So who is the next best option? Australia. We are already seeing credit markets opening. ANZ issued Monday at 128 over swap without the government guarantee. This is down from 300+ at the hight of the GFC. NAB issued last week at 130+ in fixed/floating.

So are we through this GFC yet? My opinion is not fully but we are certainly on the other side. China and the US will be what will improve our fortunes and both showing good promise.

The facts do remain though, that VPG and a host of other companies will benefit provided credit markets recover. To hell with actual sharemarkets. Credit markets are what IMHO is keeping VPG and a host of other similar companies at low levels...

Get the share market price higher and they'll issue and repay some of their debt. Improve their negotiation with their banks. Thats what I think would be best for the long term survival of VPG.

They did mention they are holding a derivative which has a negative mark-to-market value of $70m (I think). Having 10+ years experience in Financial Markets I would be particularly upset if I was sold a swap at such high levels. If your hedging IR risk, use Swaps at the bottom and Caps at the top....obviously their advice was faulty as it history shows.

But, since I have an average price of 0.051 I'm happy anyway.