let her run

Hey VPG'ers

We have seen a turn around on VPG from its lows.

Today we bagan a better rise. But are we anywhere near where VPG should be?

VPG not 12 weeks ago was 33 cents...this was with the heat of the sub prime crisis and VPG already being put in the "too hard REIT" basket along with CNP, BNB etc.

VPG should never have been put in that basket.

CNP's gearing ratio was 95% or more...BNB similar...VPG...35% max.

CNP broke banking convenants...as did BNB...VPG...not once ever.

CNP...BNB openly stated they would not be able to repay debt on time...VPG has never once had any cash flow problems, tried to raise capitol etc.

Its good to take some profit...never a bad thing but if you have been holding its because you have read the deal with VPG, read all the announcements..had a look at their position and realised the fall from 33 even was unjustified.

We're only in the 9 - 10 cent region today.

Now we are sitting in a good position for 2 reasons.

1: VPG is moving at a good pace back to where it was...and lets assume we are at full blown Sub Prime crisis still...so above 30 cents.

2: Takeover. VPG has already refuted that a company was preparing to offer 20 cents per share. Other rumours are getting stronger about a european private equity firm ready to offer 18 cents.

18 - 20 cents personally to me is opportunistic and insulting but thats business and if the takeover people get it for that...its a steal.

However...if VPG is trading at 30 cents or more...then a takeover offer is likely to be much above that..possibly 40-50 cents which is still half where it was 6 months ago but more realistic and fair based on us being in the throes of a sub prime crisis / credit crunch....not that VPG needs more credit or refinancing...but we'll let that hang over our heads.

Let it run. If a takeover mob wants it...let them see VPG at 30-40 and for them to think about an offer.