VBA 0.00% 35.5¢ virgin blue holdings limited

firthy, do you really wonder why such a 'great' company does not...

  1. 837 Posts.
    firthy, do you really wonder why such a 'great' company does not have such a great share price.

    Airline businesses are very risky. In 2008 virgin canceled dividend payments, also the stock price was $2. Also they have raised capital and diluted. They also have a massive debt, I have not looked at it lately, but last time I did which was about a year ago, it was 100 million US, it probably has grown since then. They also wasted a whole heap of money buying new 737's brand new, they arn't any better than the current fleet, they don't hold anymore capacity, they are just more fuel efficient, I don't know by how much. Last report from them I read that their profit was down 50% on last year.

    Virgin Blue is not a good investment unless it is for a US dollar play, which if the US dollar collapses, then VBA is in the clear and the stock price will go up past $2. So that is what is holding it up in the .3's atm, just a US dollar play, if the AUD becomes weaker, VBA will become a very bad investment.
 
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