reaffirmed earning should run to, page-13

re: dividend needs to be cut or suspended Perhaps you need to review the figures if you think earnings covered dividends in previous years. The following should make it more clear. The figures are: Year; Diluted EPS (c/share); Dividends (c/share); Payout Ratio (%).

Yr EPS Div Ratio
2000 5.4 6.5 120%
2001 12.1 8.0 66%
2002 6.4 8.0 125%
2003 6.1 8.0 131%
2004 8.7 8.5 98%
2005 4.4 8.5 193%

I hope the table above displays correctly.

As you can see VGL has regularly paid more than it earns as dividends. Despite reasonably strong operating cashflows this sort of payout cannot continue long term.

The state of the shareprice may not be 'hysteria' as you suggest, but a realisation of the above facts.

Also, 'forecasts' are only 'forecasts' and in VGL's case I think most would agree that it is unwise to trust such 'flexible' and 'ever changing' figures for a company with such a history of overpromise and underperformance as VGL.

I feel that a total management/board cleanout is required to remove the 'taint' of mediocrity from VGL.

Regards
BH