Why then would
VB be any different?
Beacuse they are trading profitably!!
There is a WORLD OF DIFFERENCE between what the share market values the shares at and whether the company is profitable. Many of the rising stars of the share market disappear in a blaze of (in)glory.
FMG shares were going ballistic before one shovel of iron ore had been exported. The share market deals in
perceptions and clearly people are worried about
VB. As they are worried about QF also.
The
VB share price (50c today) is certainly taking a battering but THIS HAS NO BEARING on the short to medium term viability of the company.
Those old enough to remember the stock market "crash" of 1987 will know that the media were fortelling the end of the world as we knew it. It rapidly became apparent that the sharemarket and real world economy are very much disconnected.
VB continue to pack aircraft with us, the great unwashed and so long as costs remain less than incomes then all will be fine.
As to whether their shares are a good investment...remember that for every seller getting out at 50 cents, someone is buying in because they thing it is a good buy...perhaps undervalued. What is break up valuation anyway?