If you want to take profits..... why?

Is it because you have gotten a very nice profit in a rather short time?
If you want to HOLD...... why?

Is it because you think there's more good stuff to come?
Is the charts showing any sell signs?

read this piece this morning....

http://www.thesundaily.my/news/1217955

PWROOT anyone?

"Berjaya Corporation Bhd’s (BCorp) unit Berjaya Group Bhd (BGroup) has placed out 50.05 million share or 6.19% of Berjaya Auto Bhd for RM160.17mil cash.

BCorp said the shares were placed out on Monday and last Friday via direct business transactions at RM3.20 per placement shares.

“Following the completion of the placements, BGroup’s shareholdings in BAuto has reduced from 50.47% to 44.28%,” it said.

At RM3.20, this was a discount of about 9.60% to the five-day weighted average market price of BAuto shares up to last Friday of about RM3.54 per BAuto share"

Case again?
Chase the falling stock?



Muhibbah now 2.13

   

HAPSENG mana? Or not qualified?

WOW !!!!

Veggie list !!!



Which one can ah?

Le Don

Quote from yesterday report. See page 27.

As at 30 September 2014, the Group has entered into Singapore Jet Kerosene fixed swaps which represents up to 43% of the Group’s total budgeted fuel consumption  for the 4th quarter of 2014. 

The Group has also entered into Singapore Jet Kerosene fixed swap which represents up to 21% and 10% of the Group’s budgeted fuel consumption for the 1st quarter and 2nd quarter of 2015 respectively.

Comments:

As can be seen again, Tony's foot prints is clearly visible.

As SJK (Singapore Jet Kerosene) prices fell, Tony got AirAsia entering more fixed swap hedges.

Now on page 28.

AirAsia, via its hedges, now owns 2.74 million barrels of jet fuel!!!!

previous quarter, the amount was 1.1 million barrel.

A year ago, ie same quarter last fiscal year? Only 0.43 million barrels!!

This was mentioned:

As at 30 September 2013, the Group has entered into Singapore Jet Kerosene fixed swaps which represent up to 30% of the Group‟s total budgeted fuel consumption for the final quarter of 2013 with a weighted average price of USD123.13 per barrel.

* interestingly, AirAsia openly stated its average purchase price, which was USD123.13 per barrel.

Comments:

Now yesterday report was for the accounting period ending Sep 2014.

Look at the link yesterday again: http://www.cmegroup.com/trading/energy/ref...ap-futures.html

Clicking on the charts for Nov 2014, I see this:



As can be seen, yes a big decline was seen in Sep.... which is understandable why Tony increased AirAsia jet fuel hedges...

BUT as can be seen, the bigger decline in prices can be seen after Sep, ie in Oct.

WHICH MEANS.......

clearly Tony made these hedges way too early.........

(ironic isn't it? Just exactly like stocks, one should not start buying early in a downfall in prices!!! What is cheap, could get much cheaper!!)

now, AirAsia, as at Sep 2014, has hedged 43% of its fuel consumption for the 4th quarter.....
and " 21% and 10% of the Group’s budgeted fuel consumption for the 1st quarter and 2nd quarter of 2015 respectively"......

so with jet fuel.... becoming much cheaper now..... that means that currently 2.74 million barrels of crude oil was hedged at a much higher price!!!

(ps: not an accountant but I believe there should be some accounting losses from these hedges come next reporting quarter!!)

so back to the main question..... has falling jet fuel prices benefit AirAsia?