careful, page-21

Roadster,

It is always good to hear a different voice on the forum.

You mentioned that "You are amused by the lack of knowledge by people on HC about what a mess VPG is in" or something to this effect.

Could you pls elaborate on your comment?

What I can see is that:

1. it bought Scarborough's assets at peak price in 2007 for AUD2bln, which no one expected it to be then;

2. its property value contracts as is the case with other REITs (it actually does not have exposure to the US, and limited exposure to the UK)

3. Its VCS business is suffering under the current economic downturn.

In the near term, property developing and VCS business are suffering from the downturn and thus affect its profitability.

However, it is nowhere near administration or liquidation as yet, which is what the share price seems to reflect.

Yes, I agree its profitability is reducing, however the fact that it is priced as close to bankruptcy just isn't right.

I would love to hear your substantiated view on the above.