PPRuNe Forums - View Single Post - Merged: Virgin Blue Share Price - how low can it go and for how long?
Old 15th Jul 2008, 22:12
  #112 (permalink)  
wirgin blew
 
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I doubt Branson has the money or inclination to buy more shares in VB. The global aviation problem due to the price of fuel has probably hit his personal wealth as well.
Toll are getting out of the aviation business which isn't their core business so whats the fuss about. VB will be traded like crazy on the first few days as institutions try to get a piece of the action as the company is trading well below what it is worth on paper. Toll values the company at $1.47 and don't forget the $700 million in cash that VB has.
Also don't forget nearly 90% of the shares are off the market at the moment and it isn't till August that the 61.5% get distributed (1% remain with Toll). How many of those end up in Paul Little and his mates pocket as they are substantial share holders of Toll.
The funds (your superannuation) will invest in VB as soon as it gets back into the ASX 300 because that is what they do. They have exposure to all companies and they trade them daily.
If I was a betting man I would say that VB will be trading around $1 by Christmas as long as Australia doesn't get dragged down to much by the economic destruction of the US Empire.

PS. Headsets would cost next to nothing to make so you probably only need one or two people to buy the Foxtel to cover the cost of the days headsets. Also VB aren't giving away the advertising space on CH 13 and 29 for free. God knows if subliminal advertising works but the people who buy and sell that stuff probably believe that it does.
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