Australia's largest stock trading and investment forum Australia's #1 stock forum

VAH

0.00%

8.6¢ virgin australia holdings limited

There is light..., page-2

First 2 Last

Share
Profile

Follow
clacoste

9,046 Posts.

19/05/17

15:29

Post #: 24799167
Share

Originally posted by DeltaHedge ↑

Hey all,

Did a quick scan of some stocks and came across VAH. A first glance it didn't look amazing but you should all know there is light at the end of tunnel.

Latest trading update is a good sign for holders. They have managed to pay down long term debt approx 33% (LT debt down from $2.0b to $1.4b). This is from big accelerated payments on debt. This will pay off next year and the year after as cash flow starts to free up. The company is now expected to make no losses next year (maybe even a small profit potentially in the $10m range). Cash reserves have also increased substantially at the same time $869m to $1,300m (March comparison). What this means is they are not using cash reserves to pay down debt but cash flow. This means they are improving leverage rations which ultimately translates into better ROE (improving ROE is great for shareholders). I think $0.17 was around the bottom and should hopefully get to around $0.25 by next financial year.

Please note i am not a holder but noticed people thought the latest update was bad. Given leverage ration, the balance sheet and EBITDA are improving, just hang in there until next year as there is light the end of the tunnel.

Just my 2 cents.

Expand

My sentiments as well. VAH looks like it hit bottom yesterday so bought some.

VAH Price at posting: 18.0¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

ENV

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

MKG

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

NAM

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

MM8

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

VUL

Vulcan appoints investment bank and M&A veteran to board

ASN

Utah authorities sign off on Anson's lithium extraction plans at Green River

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

AZY

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

MLS

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

There are more pages in this discussion • 218 more messages in this thread...

First 2 Last

Add VAH (ASX) to my watchlist

There is light..., page-2

Top Stories

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Vulcan appoints investment bank and M&A veteran to board

Utah authorities sign off on Anson's lithium extraction plans at Green River

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Featured News