buying opportunity?, page-13

brokers reports = chicken entrails I wouldn't take too much comfort from that report - remember they've just cut their forecast price by 29%! What's to stop them cutting again?

They base their opinion VGL will retain the current dividend payout on the 'ungeared nature of the balance sheet' - this doesn't match with my assessment. VGL have approx $21m debt at 30 Jun, Sure, they have cash and recievebles but subtract their payables and the situation is much, much tighter.

Now, if there is talk of acquisitions (as I have heard suggested from more than one source), I can see severe pressure on their ability to maintain the dividend. Especially as vendors will more than likely not be keen to accept VGL shares as payment.

Another factor is that VGL's directors may think ' what the hell, the shareprice is stuffed for a time anyway, suspension of divs can't do too much more harm'. Might be a good opportunity for a writeoff of the balooning intangibles on the balance sheet as well.

Just my thoughts, DYOR.
Regards
BH