virgin blue 'extremely vulnerable' - rex, page-9

Ignore whatever REX says, They have a sizable position in comparison to their own market cap. Their investment in VBA is down 33% so they are saying whatever they can to push the price back up. The CEO probably doesn't understand a balance sheet, not uncommon in this era. I think REX is just talking up VBA to justify their losing market position.

VBA looks cheap to the untrained eye, but it's like someone selling a house for 100k, looks like a good buy until you read the fine print that it comes with a 300k mortgage, and that renovations are locked in for an additional 200k mortgage which can not be canceled.

VBA is high risk, but the risk does come with potential gains if they can succeed.