Virgin Blue struggling to stay in the black.

[straitman]

VIRGIN Blue's share price collapsed yesterday after the airline reported a 55 per cent fall in annual profit and could not guarantee investors that it would remain profitable this year.

Virgin Blue struggling to stay in the black | The Australian

Virgin Blue shares slide as profit falls 55 per cent | The Australian

Two similar but not quite the same articles.

 

[mr_greg444]

VIRGIN Blue's share price collapsed yesterday after the airline reported a 55 per cent fall in annual profit and could not guarantee investors that it would remain profitable this year.

Yeah, and I own quite a few shares with them - Was not impressed when the share price fell from $1.20 to $0.48 in 5 days.

 

[brissyflyer]

I don't think the drop in the share price is entirely attributable to the profit reduction considering this had been announced to the asx some time ago. The share price just a week ago was $1.15 with some trades even higher up to $1.25. I think the big reduction is partly related to the distribution of Tolls holding to its shareholders as a "dividend" so a lot of those holders would be happy to sell their holdings for whatever price as for them it is a dividend. The volume of shares traded yesterday was absolutely massive with over 34 million shares (volumes on previous days this week were 10 million at the most) changing hands and around 10 million of those was in the last hour of trade. I looked up the last 10 trades for yesterday and there was one trade of 1.2 million shares.

The share price is back to where it was before Toll announced they were distributing their holding which was when the price started climbing to where it was a week ago.

Anyway just my thoughts which are just my opinions.

Peter

 

[Mal]

Yeah, and I own quite a few shares with them - Was not impressed when the share price fell from $1.20 to $0.48 in 5 days.

If you don't have a requirement to sell them immediately, or have them linked into margin lending that will cause a margin call - then this is just a theoretical loss. If you think the shares are cheap and will go back up, then perhaps look at buying more to reduce your purchase price.

The sharemarket tends to operate in irrational ways, and this is just one example of that. Whether it will trend further down, recovers or sits in limbo will be played out over the upcoming days, weeks and months.

The biggest risk would be for DJ to not adequately inform the market, or surprise the market with a bigger than expected reduction in profit.

 

[mr_greg444]

If you think the shares are cheap and will go back up, then perhaps look at buying more to reduce your purchase price.

That's exactly what I'm planing to do on Monday - its just annoying knowing that i could have sold last Monday before the shares dropped and made a decent profit. I was planning to...i just got a bit greedy.