Originally Posted by
Anotherday
The Australian view: An amazingly well run Aussie company that Air NZ have no choice but to exit from due to needing capital to fight tough competition in its home market.
The rest of planet earth including analysts and Air NZ view: another Aussie dog of a company that, in spit of restructuring is still basically a pennies in the dollar LCC. Changing the collar doesn't mean you have a new dog. Blowing through $150 mill in cash reserves to make $60mill profit doesn't make sense in any other first world country.
Air NZ sell, take a $200mill write down and move on. 10 yrs from now they'll be glad it was only $200mill.
We're about to find out what
VB is really worth, I'm guessing not much.
It's worth billions if you listen to the hype within the bubble but outside it's a case of cold reality. It has been one of the most hyped up companies I've seen for a long time, every article for the last 3 years has lauded over what a genius the mail room boy is and fueled the rather ordinary book 'game change' which was not worth the money and all along some of us have been asking 'but what about the return on shareholder's funds' 'when are they ever going to make a profit' and 'how long can the mail room occupant retain the job while spending without earning' and now the chickens are coming home to roost... it was all hype after all and now the real accounting starts...