Plenty of good news for VBA in the weekend AFR. Not only was VBA the best performing stock in the S&P/ASX 200 last week but RBS carried out some research on how companies where impacted by the rise in the AUD. The number one winner from a 1c increase in the AUD is........VBA. For every 1c increase in the AUD, VBA's 2010 NPAT increases by 8.7%.
After reading this I thought it would be worth charting the daily AUD:USD and VBA share price since the lows of March 09 (see below). Over this time the correlation between AUD:USD and VBA share price was a healthy 0.864. In otherwords if you think the dollar is going to parity then VBA's going much higher, ceteris paribus.
VBA Price at posting:
57.0¢ Sentiment: Buy Disclosure: Held
