Yeah, I heard tht also....most tht went to the event said the same thing, its medium to long term kinda of thing...the obvious plus points are klia2, new overseas hubs, re-looking into cancelled routes and the confirmed orders of planes...these will absolutely produce a high gearing with the additional fuel prices but the ultimate drawback now is the earnings record tht resulting to such a high PE EPS etc...can we say tht it is an even playing field without giving a fair chance to them to show what they are capable of? From the ceramah-style event, their vision and mission were very clear, concise, customer-friendly and IMO it is highly achievable...We all know tht airline is a very volatile business, but Malaysia have less competitors atm (which is very healthy) and AA is part of AAX and the price is 10 times the price of u know whom...Last time everybody dont give a d*** with AA and very sceptical about it cause the brand was not there yet...If u compare to Astro case (monopolising industry), with an even higher valuation, limited sector growth and relisting stock, the upsides were much lesser albeit with a confirmed yield...Tony even put his foot on the ground more than AK, that shows a true commitment...So I guess as an underwriter CIMB will at least come up with something to shore things up but still up to everybody to decide...Just dont put your lifeline on this la....cheers

Reasonable price - which can be very subjective.

lost hope when see fair value price. but maybe its wil going up high in first day listing, nobody know. but this not for me (quite high risk).. all the best

AAX = ASSTHROW... Kaput

Damn dangerous..

Keeping my option open. Still thinking wanna apply or not

I think Tony Fernandes has done a good job in convincing future investors by doing road show to retail investors. He has not only promoted AAX but also removing skepticism among retail investors, which have got their hands burnt from Astro.

unlike AK, he had just hit and run.

The flight tickets have a huge number of black out dates though, so it is not as if you can just use it whenever you want just to inform.

Have u guys heard the radio ad of the IPO? Its like selling hot cakes...

BTW (someone mentioned this b4 but I restress it back) to be eligible to get the free ticket, u have to fly with AAX at least once for the past 2 years and have joined the privilege programme...

Obviously, if u have one ticket u want to go to the most expensive one la rite

I think based on the AA name alone, it will be oversubscribed. I've looked at the prospectus and would most probably decide not to apply, though I feel that this is a stock that will jump on first day. In and out profit most likely.

planning to invest in this..

Is it because of their previous cash flow or no yield in place? But still u feel it gonna jump, why not apply some...Yeah its too obvious but if u notice, they are bragging on the final year performance and counter it with the expansion plan ...by the end of nxt year they will double their fleet...they are fighting cost with frequency to be exact...

I have suspect in their cash flow as well as their future projections. I also don't really like the CEO after a few interviews I've heard of him and his style. For the amount I'm going to apply to the IPO, I'd much rather invest it in some other counters. Also Warren Buffett tells us no http://www.forbes.com/sites/tedreed/2013/0...-he-broke-even/

Agreed, if u see the past record of cash flow,u will straight ask yourself what had happened, the future projections are always sweet for all IPOs...IMO they were experimenting with routes and it failed miserably but can u blame them of the rising of fuel price? ...Honestly, when they first come in with route to London and Paris, the issue of sustainability straight came to my mind...It has been proven otherwise though but logically it was the trend tht time to go to these places...The level of success could go anywhere if u ask me at that particular time...Yeah at the end of the day, invest and trade are 2 different beast altogether

I believe tht what Warren said is true but I also believe tht he hasnt made any comparison with regards to the current evolution of airlines industry ie regional low cost model etc...back then he was sort of liking to monopolise certain industry in his own conutry but it was not going his way in the 90s airline industry where airline companies were rare and mostly country-based...But the last statement really sum it up conclusively

I can't blame them for fuel price, but that's the concern when looking at airline shares. A huge chunk of their business expenditures (I think fuel is about 45% of the total?) is totally out of their control and I still don't see enough real meat behind some of the fluff thrown into the prospectus.

I think it will probably initially be a success, but just not enough for me to justify seeding into the IPO knowing I could we seed it into some other stocks especially with the current weak market.

yup, my understanding is that Buffett refers to the FSC ...not LCC short haul.

btw, im skipping this IPO too. although it has a great name and a great entrepreneur driving it.

this LCC long haul model are experimental and i dun like to experiment on it. prefer AA 5 times more.

Asam Buffett disagree with Warren Buffett?

BTW, AAX is no longer LCC long haul. It's medium haul now.

Regardless of what, airlines are still high risk investments. For a start, their profits are subject to oil price. Secondly, this is a hot industry. If AAX is successful, competitors will come in. Malindo also plans to do medium haul flights.

all join the party .....

I am very interested in this topic though I am very new in stock trading.

Only 10% subscription rate for Blue form (retail - AAX eligible passengers)

http://www.theedgemalaysia.com/business-ne...-ipo-offer.html


The "extra" shares are made available for Retail Public & Retail Bumiputera Investor

This post has been edited by davinz18: Jun 17 2013, 05:50 PM

How to get the blue form?