LOL!

I think the market were expecting AA to do worse...
So now despite doing bad, it's actually better than expected.

I just had a look at AirAsia report.
It's actually bad.

Ok, we all know AA business model.
It borrows money, lots of money, buy planes and then run the low cost modal.
At one time, it deemed USD were weak, which rightly was so.
And they were correct too.
Cheaper loans too (iinm) ....
And it kind of worked.
They were making money....
And cash flow was not too bad too.

Problem is.... I would say is the GREED factor.
They not satisfied.
Who isn't?
LOL!
They wanted more....
with it came the large orders.
Which meant... whatever good cash flow it had... will be consumed by the constant payment for new planes.
With each plane costing a bomb...
comes the need for more and more BORROWINGS....

** The 'good' cash flow is helped by depreciation of the planes.
Consider how unreal the situation is.
Current year depreciation works out to 634 MILLION!!!!
Current fiscal year PBT is only 363 MILLION!!!!!!!
The depreciation is more than the PBT!!!!
SWEAT!!!! **

This is the basic understanding of the business...
and one haven't even factor in competition (Malindo) yet......

The thing to check upon everytime for AirAsia is... its balance sheet.

This fiscal year compared to last fiscal year

Cash balances: 1.385 Billion vs 2.232 Billion
Total debt: 10.17 BILLION vs 8.40 Billion



10 BILLION in loans! WOW!

Don't need to be a genius but the simple comparison easily says that AirAsia is worse off today compared to last year.

Why?

They borrowed a lot more to buy planes.

You have to ask is it worth it and for me, it's best to compare the bottom line.
If you are going to borrow so much more, the bottom line better increase, yes?

This year PBT 363 million.
Last year PBT 962 million.

there lies the answer!!!!

What's the conclusion at this moment?

After all that borrowing increase and deterioration of cash balances, PBT shrank from 962 million to 363 million!

I easily give it FEI LO here.



In the fine points.
AirAsia has hedged 52% of its USD denominated loans. it said "The latest weighted average of USD/MYR forward exchange rate is 3.2239."

The next reporting quarter, the USD was clearly much higher.... almost 3.29 or so on average.
I think, you can expect more currency losses in the next quarter.


It's a simple stock to AVOID.

So kan cheong meh?

Stocks like Cresbld and Gadang both holding above their current break out point....
Should be ok kua....

Understanding financial reports and the impacts on stocks not so clear cut one la....
In the market there is NO HOLY GRAIL maa.....
so you cannot totally rely on financial reports as a pau tan to win money.

There are so many reasons why a stock might not move despite its apparent good results.
One of the main reason is 'The market already was expecting the good result'....

For example, if during the reporting month, a stock clocks up a 15% gain before the announcement was made...
Once the announcement was made...
the stock doesn't move.
why?
The apparent good results is already priced in.
Stock dah jalan kereta.....

And I see they pandai pandai make stock market noises...

like they want do share buyback...
want to pay dividends also...



compare those 2 statements with how fast their balance sheet is collapsing....
you know they are talking3 talking 4....

JC leng chai...
what nice you see in Infotec?

In your example, I see it clearly the other way around.

If the stock I buy drop from 18++ to 11.8+....
it can only mean one and only one thing...
I bought the stock wrongly at the wrong price.

This is nothing to do with the stock pick...
It's how I buy the stock that is wrong....

So you think holding is the wise decision?
I don't.

This means you are saying you are letting the chart use you.
The chart dictates to you what stock to buy...
and what price to buy.....

besides the chart...
you have any other reason why you want to trade this stock?

That isn't the issue, right?

WTH!!!!

Bloody good for nothing.
How come I still have no dreams about stocks one?

Not fair...

Can I have CSY's cell phone number then?


Pretty please?

CSY?

Uncle Choi...

What color was the under pants ?

JC leng chai...

you sifu one more time... I no reply you lor.

LOL!!!!!

how what?

Why you buy a stock?
Cos the stock will fly higher.

Why the stock will fly higher?
.................

ya ya....

yee har hai

you no brain never mind....

most important is chart now so nice...

Man make charts...
not charts make man.



You people want short cut all the time.
There is no short cut.
NO HOLY GRAIL.

tak faham those statements?

Well you better.


SEE FOOD Gark ask you to practice ...
without money....
Learn to read more ...
before you play.

Got do or no do?

Already gave my reasons...

Results, even though bad, some now say not as bad as expected.
Company say share buyback.
Company say dividend.

Which of all 3 reasons you believe?

No pain no gain.

You need to chum char to AhLamb jor...

She can be your SEE FOOD.

You trust no.1?



You got read my long long reply or not?

I think the market got it ALL WRONG.