There is light...

Hey all,

Did a quick scan of some stocks and came across VAH. A first glance it didn't look amazing but you should all know there is light at the end of tunnel.

Latest trading update is a good sign for holders. They have managed to pay down long term debt approx 33% (LT debt down from $2.0b to $1.4b). This is from big accelerated payments on debt. This will pay off next year and the year after as cash flow starts to free up. The company is now expected to make no losses next year (maybe even a small profit potentially in the $10m range). Cash reserves have also increased substantially at the same time $869m to $1,300m (March comparison). What this means is they are not using cash reserves to pay down debt but cash flow. This means they are improving leverage rations which ultimately translates into better ROE (improving ROE is great for shareholders). I think $0.17 was around the bottom and should hopefully get to around $0.25 by next financial year.

Please note i am not a holder but noticed people thought the latest update was bad. Given leverage ration, the balance sheet and EBITDA are improving, just hang in there until next year as there is light the end of the tunnel.

Just my 2 cents.