PPRuNe Forums - View Single Post - Merged: Virgin Blue Share Price - how low can it go and for how long?
Old 7th Mar 2009, 12:34
  #538 (permalink)  
Quokka
 
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I'm not suggesting VB are insolvent.
...and this is the fundamental belief that one must have decided when making a decision to invest in VB, or any other company for that matter.

If you believe that VB is, or will become, insolvent then you must not invest in VB or invest only that amount which you are prepared to gamble away to nothing on a punt that the share price might rise for no apparent reason.

If you believe that VB is and will remain a solvent company then the next question to ask is to what extent does VB have the potential to add value to the company to such an extent as to be reflected in a substantial increase in the share price over time.

...and then ask yourself, and this is a monumentally difficult question to answer, over what period of time to you predict that the share price will rise to reflect your predicted increase in the value of the company.

What follows is a test of research, logic, faith in one's logic and emotional intelligence (the fear factor).

abc1 could be very close to the mark. Temasek Holdings were actively buying shares in VB late last year.
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