Merged: Virgin Blue Share Price - how low can it go and for how long?

[porch monkey]

With 40 million shares changing hands tim, the "savvy gamblers' don't appear to share your opinion. Neither does Mac Bank it seems. (Even though I detest them!)

[43Inches]

Sorry Skystar, that post was poorly written, I was alluding to macquarie and friends may be buying the shares then talking them up to earn some quick cash (first half). The second half was in regard to the shares being undervalued compared to company assets therefor a controlling interest could get some of their money back even if the company failed through asset sales. The intent was not to buy and break up for profit for the sake of it. The little spreadsheet next to the macquarie artical was interesting though as it showed a big loss next year but then a big swing to profits afterwards, a big call to predict that in the current environment.

Currently the books state an equity of $900m company assets and as TIMMEEE stated at about 50c a share 100% of shares would get about $600m. There would obviously be contract termination, personnel payouts, legal issues etc, etc, etc on top of that.

[Skystar320]

yes thats the value of the shares given you own 100% of the shares, however when you try a buyout option your not going to offer the holders of DJ shares at the current asking price

Therefore your going to offer them atleast 10-30% more than the current asking price to make the sellers sell the shares to you!

[KRUSTY 34]

Oh well, we'll only make $100 mil. Not bad for a days work.

Gordon Gheko 1986!

[ozbiggles]

Timmmeezzzzzz
We get it, you don't Like Virgin, the company or its share price.
You got anything new to add?

[Section28- BE]

VBA Trading- Tue 26 Aug 08

Today they put through a total of 35,076,274 with a high of 0.540c and a low of 0.505c to close at 0.520c or down 1/2 a cent for the day.

[porch monkey]

Well, Someone's buying. The interesting thing will be who.........

[Quokka]

I was alluding to macquarie and friends may be buying the shares then talking them up to earn some quick cash (first half).

Disclaimer:

I, nor any Tom, Mr Smith or Harry that I know has bought VB shares... yet.

Mainly because I got out of bed at midday today, fed the cats and promptly went back to bed... only to surface later at a time that precluded me calling my Mac Private Buckeroos broker... and a long time after the close of trade.

As a rule, I don't buy shares in aviation companies because I believe the potential downside is significantly higher than the potential upside. Just my personal opinion and one that is not shared by my Mac Private Buckeroos Client Advisor. It's a rule that I've broken twice, once with QF and once with VB... on both occasions I lost money. Don't get me wrong, I love aviation, having spent my teenage years and my whole working life in it. I just have more success in other sectors of the market when punting.

End of Disclaimer.

However... having read the article, from a general investing perspective, one would have to agree that when the share price of a company falls below the asset value... one should have a very, very, close look at it.

One warning though... remember Pasminco.

[Section28- BE]

VBA Trading- Wed 27 Aug 08

Today they put through a total of 23,313,942

High of 0.52c and a Low of 0.49c

To close at 0.50c - or down 2 cents for the day.

[VH-JJW]

Below NTA, below market P/E and any other valuations.

Despite my personal misgivings about their strategic direction etc.

It looks cheap!

I'm in for a purely speculative play at $0.50

[43Inches]

Something starting to happen today, 50m shares traded so far and price lifted slightly, still cheap though.

[desmotronic]

if you call 8% rally for the day slightly.

[Skystar320]

Its interesting to see what happens with DJ shares, $100 - $150 of your money is well worth spent if the price can go past $1.50 where as your inital $150 gives you $300back

Call me whatever, but I might fund $150

[Section28- BE]

VBA Trading- Thurs 28 Aug 08

Yesterday they put through a total of 51,349,369

High of 0.555c and a Low of 0.495c

To close at 0.545c - or up 0.045 cents for the day.

Still no announcements on change/or becoming a Significant Holder this morning- ex the ASX site.

Rgds

[B772]

I notice the DJ Debt/Equity ratio is now 160.6%.

Scary stuff !.

[THE ORACLE]

B772,

Scary indeed, when after 6 years in business with an initial list price of around $2.40 and the 'gift' of the Ansett collapse, DJ is now worth 20 percent (at around 50 cents per share) of the original listed value.

What a great basis for continuing the DJ 'expansion'.

Good luck to all concerned!!

[Section28- BE]

VBA Trading- Monday 1 Sept 08

They closed on Friday at 0.575 cents

Today they put through a total of 14,974,221

High of 0.565c and a Low of 0.525c

To close at 0.54c - or down 0.035 cents for the day.

The Commonwealth Bank of Australia (and its subsidiaries) announced to the market today that, on the 27th of August it/they became a Substantial Shareholder in VBA- with 57,179,077 shares or 5.44%.

[Skystar320]

for all concerned please refer to Australian Securities Exchange - Stock Market Information, Stock Quotes - ASX

[DJCCGuy]

With 5.44%, im assuming this would mean we wont be seeing any significant changes to the airline?

[Skystar320]

Seems Colonional hedge funds picked the stake up [mind you 50cents a share, extrememly cheap!]