Virgin Express (VIRGY) Richard Branson's European Airline Message Board

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Non-Tech : Virgin Express (VIRGY) Richard Branson's European Airline

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To: soozathelooza who wrote (2)	8/7/1998 7:14:00 PM
From: Mike Fox	Read Replies (2) of 62

It is very difficult finding financial information on this company. You can call the company at 32-2-752-05-11 (international) and request an annual report. I did some analysis of the annual report and think the stock is way oversold on fears of heavy competition in the new deregulated European airline market (especially GO - BA's low-cost entry out of London). Remember the host of bankrupt US airlines and losses at the majors when the US airline market was deregulated? However, unlike the early days of US deregulation, this is a very low cost airline that has solid and experienced US airline management (the president is the guy who turned around Continental Express). Virgin is expanding intelligently thoughout Europe to routes that they predict will be profitable in a short period of time. This is reflected in the high load factor of 81.6% in the latest July 1998 report. I've calculated full book value at $13/share and tangible book value at $5.7/share. The financials are a bit tricky since they report in Belgian Francs under UK GAAP with footnotes translating into US GAAP. Significant profits at VIRGY are probably a couple years away and will depend on more significant expansion throughout Europe. However, full deregulation starting in 1999 should accelerate the expansion. I think this is a diamond that is on nobody's radar (hence very few postings to this thread and minimal analyst coverage). VIRGY has the great Virgin name which will help not only sell airline seats but draw attention to the stock if anyone (analysts or the company) takes the time to promote it. I've bought at 13 (book value) and will double up at 11 if given the chance. Good luck Mike

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