Well, a few days in the life of VTG is certainly eventful! My lesson is to invest/speculate in companies with Sustainable Competitive Moat. VTG has NONE. They seem to be completely at the mercy of TLS.
Only a couple of days ago I thought that a company with a pretty solid track record might be a reasonable speculation (after allowing for some downgraded profitability due to Big Brother TLS).
Wow, what a wake up call to the risks of a small fish swimming in the mouth of a predator supplier. VTG (small fish) seem to be completely at the mercy of TLS (Predator) with most of VTG's profit possibly wiped clean from its future financial statements (as a number of forum members have suggested). The proposed 10%, 10% and 10% revenue cuts (for next 3 years compounded), seem to be from revenue items that don't have commensurate variable cost components.
This means that costs of business wont drop when revenues drop and margins could go to zero ZERO! Shit but I hate learning lessons the hard way. The only good news is that I pulled my last 1/3 position order from the market before it executed. Foolish but I'm hoping VTG management claw a way out of this mess.
