The news of privatise will not mean price will be up significantly.
The catch is what is the price of privatisation.
If privatisation offer is Rm0.20, how can market price shoot up more than RM0.20?

Regarding the super long term holding or holding power, if there is another cash call/right issue, just like what happened on the latest right issue, either shareholders need to fork out extra money, or shareholding being diluted (if do not wish to take up the right issue).

Many also had this mindset when MAS was around RM1.00, prior before right issue call.

Instead one should at the financial situation or report that determine whether the company has turned around or not.
As pointed earlier, the minimum benchmark for a business to sustain, is operating revenue > operating expenses.

Don't use 0.30 as benchmark to justify it is cheap or not, but valuation of it.
Share price can instantly become 3.00, if company decide to merge 10 share into 1, aka reverse splitting,
Just like what Citi had done it before.

Just for info, MAS was Rm 5~7 about 20 years ago.
20 years is super long term or not?

This post has been edited by cherroy: Oct 13 2013, 06:18 PM

Paid up = 16.71 bil shares
Earnings = Lost 454 mil @ 6 mths to 30/6
Assume generate EPS 2 cents in FY12/2014, PE is 17.5 times
Avoid this stock unless potential privatisation

since it is a figurehead that symbolize msia official airline, i seriously thought the if and when the privatization were to occur, the offer will definitely more <1.0. lol

well, the operating revenue > operating expenses sure is important and i keep wondering as mas was operating at loss, how come it can continue operate.. i wonder.... initially i thought it is GLC so it will be invincible but.... as of now, too risky to enter as of now, in my opinion..

lol.. about MAS was rm5~7, those older gen keep saying mas will back to its glory (RM5~7) reason, GLC and msia official airline but then i looked at the chart and annual report, i was like and plus
small fluctuation, yes it may happen but the % to back to its glorious price, erm...

20years this one sibeh long.. i was planning if drop <.30 will hold around 10~15 years, of cos just around 10 to 20 lots (1000unit). pretty much like a gamble.. with small hope that it will raise, "the fallen shall rise"

So many reasoning that the price cannot go up but don't forget in stock market, there is no rational reason for stock picking up sometimes.Time will tell. There is an old saying whatever that go up will come down and whatever that reach rock bottom will bounce back up

Those go down and rock bottom one, can stay rock bottom for decades and some even may become delisted.
Delisted, means game over, never has chance to go back up...

Stock market is about valuation.
A stock if has good value, and deliver good profit to shareholders, it goes up and may won't go down to its old day low.
Just like BAT, KLK, you won't expect it can go back to RM10, or RM5.

Share price is not just a number but a valuation that investors willing to pay for it.

Short term, yes, sometimes no rational reason can result in share price volatile move up or down but it just a temporarily for sometimes.
Without fundamental to support the share price, soon or later it may crash down fast.

Long term wise, share price need to have a base of fundamental that support its share price.

Read my signature

Hi Cherroy,

I understand about stock valuation. If you talk about any private company I agree but this is GLC stock. Delisting MAS? It is like asking government to close shop. The worse I can think off is changing it private. Again the stock should go up when there is a plan to privatise it short term. I never said this stock can keep for long term. Can you tell me which GLC company that are delisted once the stock price plunged?

I hope you get my point. The argument here is MAS is a GLC that's all, if it is not GLC, who the hell will still buy this stock as it is making loss for so many years.

How many shares u hold?

MAS is one of big GLC in malaysia. i cant say much. just wait and see. good luck all.

been following syed mokhtar style of acquiring company. the price will be pushed low for couple of year before he acquired. not sure how long mas price has been this low, but the trend is there.

Privatise is also resulting in delisting.

Privatise doesn't must mean buy at high price as well.
Who said privatise means stock price must go up.
There were many company being privatised at low valuation.

If ABC company worth Rm1.00, then you expect gov want to privatise it at Rm5.00 because it is a GLC?
Gov itself is not a money printing machine. In fact, gov budget is already straining with deficit years after years.

The point I want to highlight is a company is GLC doesn't mean fool proof that existing shareholders or buying its share is safe from losing money.

Many also taught the same when MAS was Rm1.00, hold a GLCs won't be wrong.
Many also bought Renong and UEM, they were listed GLCs before as well.

Yes, I get your point, but the point is, do not place blind hope just because it is GLCs, gov may not let the company to close, but gov may/can find a way for rescue/bailout plan, but this doesn't mean existing shareholders will/must reap a profit because of it.

Bailout can be in the form of injection capital, aka new shares issued/right issue whereby existing shareholders being diluted.
or
Privatise at low price and many other form of corporate exercise as well.

This post has been edited by cherroy: Oct 16 2013, 01:29 PM

just wait and see. good luck all including me

This post has been edited by fiqir: Oct 16 2013, 03:36 PM

MAS has today lodged with the MyCC its Written Representation, being MAS’s reply to the MyCC’s Proposed Decision dated 6 September 2013 as required. MAS has already indicated its intention to have an oral representation on this matter with the MyCC and will await MyCC’s proposed dates for such representation. MAS’s Written Representation demonstrates that it did not enter into a market sharing agreement in contravention of the Competition Act 2010. MAS looks forward to reinforcing that point at the oral representation.

This announcement is dated 17 October 2013.

Should put in Topic Description : ' When this plane will fly?'

MAS appoints Nadziruddin as new CFO

Malaysian Airline System Bhd (MAS) has appointed Mohd Nadziruddin Mohd Basri as its new chief financial officer, effective Nov 1.

Nadziruddin, 45, is currently the managing director of Khazanah Nasional’s unit Destination Resorts and Hotels Sdn Bhd, and was also a former executive director of investments at Khazanah.

Prior to that, he was Khazanah’s chief financial officer.

Before joining Khazanah, he served MAS as the senior general manager of airport operations.

Talk so much no use just wait and see. I also do not think that the price can go back to RM5-RM7 but going back to RM1 is a possibility I believe if the gov interfere...That is good enough for me to exit! In fact if I exit now I still will make profit but just have to be patient.

Do u know wat is MAS PE (assume FY14 earnings) if it reach 1.00 -vs- Airasia current PE?

Yeah yeah all this PE ratio, intrinsic value all bs one lah. In Malaysia it is mostly speculation not like in US whereby stock price is very much depend on valuation.

U have d answer or not?

Mas hopes govt will continue to invest in aviation infrastructure

http://www.theedgemalaysia.com/business-ne...astructure.html