Should I take my allocation?, page-15

There is a positive correlation between oil price and airline companies’s revenue. So, I am not concerned about the revenue of Virgin. But whether it is able to keep its costs down will require a long term observation. In my opinion, this company will continue to fail if it can’t control its costs even it has paid down all the debts. I bought this underperformer at $46 cents and planned to hold this long term. I therefore think that my opinion is quite objective. The shorts we saw would not bring it down below 20 cents unless a global financial crisis comes. However, once Virgin gains its proficiency in cost reduction, confidence will be restored. Currently, it is a good buy as a long term investment if you want to grow your money with this company. An opening of the direct lines between China and Australia will definitely help the recovery. Given the Chinese want a share in the Aussie air market, I see no reason why they would not invest for new lines given they already have become significant shareholders. This share can easily earn you a 7%-15% return. It consists of risk, OF COURSE.