Virgin Blue shares plunge

[Dave Noble]

Virgin Blue Holdings, Australia's second-biggest airline, reported a 55% fall in annual profit today, hurt by surging oil prices, and cut its dividend.

Net profit totalled $97.7 million for the year to June 30 and Virgin Blue skipped its final dividend. The shares dived 13% after the news.

Full article at Virgin Blue profit down, shares plunge

Dave

 

[oz_mark]

Closed at 59c today, so anther 25c off.

 

[Mal]

Closed at 59c today, so anther 25c off.

I'm thinking I could make some quick money from this fall. Seeing it fell to roughly 50c only a couple of months ago (12 month low 45.5c) and bounced back to over $1.10 before falling again, there are high chances of it happening again.

Hmmm. The fuel hedging stats look ok as well.

Perhaps the "Bearded One" will come sniffing around as well for a deal.

Choices, Choices, Choices.

What was the famous quote about investing in airlines?

 

[JohnK]

They are not the only airline to struggle with soaring fuel costs and they still made ~$100 million net profit for the year. It will more than likely be a better year ahead with V Australia starting up and the price of oil down to US$114 a barrel for the time being.

I think it would be a good time to buy Virgin shares....

 

[Flashback]

I'm thinking I could make some quick money from this fall. Seeing it fell to roughly 50c only a couple of months ago (12 month low 45.5c) and bounced back to over $1.10 before falling again, there are high chances of it happening again.

Hmmm. The fuel hedging stats look ok as well.

Perhaps the "Bearded One" will come sniffing around as well for a deal.

Choices, Choices, Choices.

What was the famous quote about investing in airlines?

"Invest and you shall fail" :?:

 

[oz_mark]

"Invest and you shall fail" :?:

I was thinking it was the one about how to make a small fortune

 

[Mal]

I was thinking it was the one about how to make a small fortune

Thanks for the reminder

Q: How do you make a small fortune in the airlines?
A: Start with a large fortune!

That aside, I still think there is money to be made with VBA. The trending follows classic patterns of sharemarket falls and recovery.

 

[v8Statesman]

Thanks for the reminder

Q: How do you make a small fortune in the airlines?
A: Start with a large fortune!

That aside, I still think there is money to be made with VBA. The trending follows classic patterns of sharemarket falls and recovery.

Put a note in my calendar to look at this threat in 4 months

 

[Mal]

Put a note in my calendar to look at this threat in 4 months

Tis cool. It can be correlated with such great theories of mine like "Qantas will drop fuel surcharges completely" and some other very interesting theories I've posted here

 

[oz_mark]

I hope you are still just thinking about it - down to 49c at the moment. Mind you I am starting to think about buying some shares now :mrgreen:

 

[Mal]

Nah havn't invested. Going to ride this one out on paper and see how I go

Close $0.48
Previous Close $0.59
52 week high $2.50
52 week low $0.46

Analysts seem to have a negative view towards the stock, so it could still fall further. But surely it can't fall much further.

On Monday I'll imagine I bought $10K worth (on paper!) at the 48c price. Let's see how I am doing in 3 months time!

 

[JohnK]

I hope you are still just thinking about it - down to 49c at the moment. Mind you I am starting to think about buying some shares now :mrgreen:

That looks like a great deal. Just wish I had some cash available now to buy some shares.

Mal, shares always make a profit on paper. The problem arises when I actually invest the money....

 

[straitman]

That looks like a great deal. Just wish I had some cash available now to buy some shares.

Mal, shares always make a profit on paper. The problem arises when I actually invest the money....

JohnK,

Confirm that you won't buy any shares and some of the rest of us might.

 

[kpc]

Of the 9 analysts on ComSec, 1 is recommending a moderate buy, 5 are recommending a hold, and 3 are recommending a moderate sell.

Good luck to those that do decide to buy....

 

[Mal]

Nah havn't invested. Going to ride this one out on paper and see how I go

On Monday I'll imagine I bought $10K worth (on paper!) at the 48c price. Let's see how I am doing in 3 months time!

Share opened today at 50c, and closed at 52.5c. Might as well declare a 50c buy price, and see how it goes over the next 3 months.

Good luck to those buying, holding off and just keeping an eye on what's happening!

 

[Flashback]

Share opened today at 50c, and closed at 52.5c. Might as well declare a 50c buy price, and see how it goes over the next 3 months.

Good luck to those buying, holding off and just keeping an eye on what's happening!

Reminds me of the ASX game I used to play when I studied Economics @ high school :shock:

 

[Evan]

Reminds me of the ASX game I used to play when I studied Economics @ high school :shock:

Good games except this is for real money ... want to gamble
E

 

[Flashback]

Good games except this is for real money ... want to gamble
E

I remember the last time I played, in fact. It was when September 11 happened; and we had recommended only 2 days earlier (to one of the other groups ) that they should buy Qantas shares. Needless to say, they didn't do so well

 

[oz_mark]

In addition, to the school one, the ASX run a public game as well. Not that I have ever done any good! One just got underway a few weeks back, so missed the boat on that one

Free Sharemarket Trading Games - Stock Market Education - ASX

 

[NM]

Reminds me of the ASX game I used to play when I studied Economics @ high school :shock:

I was a member of the winning state team back in the earl 1980s. We won a trip to Mt Isa (including an underground tour) and Cairns flying Ansett First Class. But it was a lot easier "spending" someone else's money.