3.06 Now at paper loss d, even with the dividends

what do you think about the company? Is there any future? If yes, then you should increase some units to lower your purchase price now.


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btw, does anyone know what's AA door gift for their AGM this year??

Hope you kept it.

90 sen special dividend!

hmm gg. but hor, looking at last year trend, even with the SD,the unrealized paper loss willoffset all the dividend received LOL

Prior this Red tune (Tony and kamaruddin holding company) subscribe about RM1bil private placement at RM1.80 per share. Now they have received special dividend of about RM1.3bil until to date (40 cents + 90 cents special dividend).

Where goes the dividend come from? It is by selling and leaseback the plane to a third party, mind u airasia has to spend a huge sum of money to refurbish and hand over, after leasing period has to refurbish back to good condition back to lessor. Now my question is about this, why does Airasia need to sell plane while its core business is in airline. They still has to pay rental at higher rate with fix term, in the mean time have to pay for plane maintenance as well.

It is fine where they sell the old plane, lease it for 5-7 years then proceed with the A320 neo where fuel consumption is lesser, if u read the report, the lease is about 15 years.

I am new to stock. Wish to buy hold some dividend counter.

Is AA still healthy?

Keep giving out divided but the revenue flatish or dropping is not the way. Some more this gov keep pressing them the lower fare.

This post has been edited by [Ancient]-XinG-: May 30 2019, 07:42 AM

90c dividend wow....limit upz... rugi x beli

special dividend is derived from sale and leaseback of the existing fleet, it is one off dividend.

Healthy - Yes. But in future their cost will be higher

1. The sale of the leaseback company. It really sounds so Donald Duck.

Lemme get this correct...

A. They borrowed like hell to purchase planes - wassit 80 billion worth? Or somewhere around there...

B. Deep in debts. Did their debt reached over 10 billion at one time?

C. To cut this debt problem down, they started doing sales and leaseback of the planes, which they grossly overbought.

D. They then do a Sale of that sales and leaseback company and they also did THAT private placement with its own bosses. Sold some planes too.

2. So they got money.

3. With that money and a slower acceptance of new planes from that mega planes purchase order, cash flow looked OK.

4. Now with a rich pocket, they decided to do special dividends? Huh?

That's right. HUH! 2 special dividends. Is that even remotely prudent??????

Backlog of planes, that runs into billions.. yeah.. much more than that 42 billion... still exists. Multi Billion backlog of planes ordered, and with the money thinks they are so rich that they give away their money like confetti?

So what logically will happen next? My guess? As they start accepting new planes, they will seek funding, more borrowings. What then? Sale and leaseback again?

See where it is going?

Would you call it healthy? Will I?





Lastly, the stock price will be readjusted once this special dividend goes ex. Yup. Minus back that 90 sen......



Oh.. satu lagi. Anyone noticed how shitty the earnings was? Anyone bothered why? Lol

This post has been edited by Boon3: May 30 2019, 09:56 AM

Sell and lease back will make company balance sheet looks good (the planes asset and loan of it, won't in the balance sheet) and enhances cash position.

But with new MFRS 16, it requires the company added back into the balance sheet in the form "right to use lease" under liabilities section.
That's why we see big difference in the balance sheet compared to previous year one.
Also, depreciation is incurred with the new MFRS 16, which may affect the bottom line figure.

Sell and leaseback will do one good thing, the cash.
Many airliners worldwide are doing this to free up cash, instead borrow billion to own the planes.
Just like company rent a place to run a business instead buy or own the place.
It always depends on company financial situation and needs (particularly cashflow)

Yes, the special dividend mainly come from the cash generated from the sell and leaseback of planes.
90 cents dividend means the company will fork out roughly 2.9 bil cash to shareholders.

The profit was hit by the increase of fuel price, which they only hedge about 40-60% on it, even SIA also posted not so good result so i think overall airline company has been hit on earnings.



I'm not sure whether it is feasible for them to conduct such massive move, almost 80% of the fleet was sold to BBAM & Castlelake and leasing back with higher price. The rental was on 15 years tenure

If the company buy and leaseback building, then it is wise to free up their balance sheet, but airasia core business is in airline business and aircraft is their bread and butter. Maybe it will work but definitely operating cost will be going up as well.

P/S : Oh ya i forgot Airasia owe MAHB hell lot of money, hearsay they withhold the airport tax close to few hundred millions.

This post has been edited by yhtan: May 30 2019, 10:03 AM

General rule of thumb. If a company is doing well and they announce high dividend that is a good sign and means company is doing ok and they look after share holders.

However if revenue / profit goes down but they still declare higher than average dividend it could be a smokescreen. Dont let that misguide your decisions

And hedging. Already mentioned few times before.

Well, there's hedging and then there's excessive hedging. You know what my opinion on Airasia's hedging.

Yeah the point of my summary of Airasia, is that it borrowed too much till it was forced to do a sales and leaseback of its assets. A well managed company will NEVER on such a strategy.

Nevertheless, since it decided on such a poor strategy, it then embarks on this utterly reckless strategy of giving back huge dividends. Utterly stupid in my opinion. If got extra money, pay off loans lor..

And that MAHB squabble...was it a planned squabble so that it can use those money? Remember this PETTY squabble coincided during a period when Airasia debts was soaring....

Now their fleet size shrink from 100+ to around 10-20, about 80 plane conducted the sale and leaseback. It is a well plan by Tony, he subscribe the share at RM1bil, give IB interest of about 6-8%, let say over 3 years total cost is about RM1.3bil, special dividend can get RM1.3bil. In summary get free share. Win-win situation for him. It could be a sign where Tony find the market saturated and unable to find growth, he got stuck in Japan and India recently. The long haul flight unable to compete with full fledge airline, which is why AAX is bleeding non-stop. I once check flight ticket price to Tokyo, surprisingly adding in those luggage and package, the price is almost the same as full fledge airline like MAS/SIA, sometime even higher.

All the while they using MAHB money to keep it rolling, but this transport minister is not a guy to mess around

Hello, new to all this. My friend asked me to take advantage of the 90c share thing, but i cant seem to make sense of it. How he explains it is, you can buy right on 30 June, then sell off on 1st August and you will get the dividend. Is that true? What if a millionaire jumps in on 30 June, then get dividend and ciao? Can help me make sense of this. Thanks guys.

Of course it is good for Tony

What is his pay package already?


Yeah. MAHB thing is unreal. Where can use petty squabble as an excuse not yo pay?

You won't get the whole 90 sen.

Once the stock goes ex dividend, the share price will deduct 90 sen from its last traded price the following trading day.

Eg

Stock price b4 ex = 3.10
After ex. date, the share will be adjusted 3.10 - 0.90 = 2.20

So after this, count your buy price...

Got make money?

If you cannot understand this, my kind advice to you is save your money. Don't play stocks...

then just pray that 2.20 will back to 3.10 again.... means earn RM0.90...this happens before for Maybank after div ex...

Well did it happen for the other special dividend that AA paid out?

Let me ask you the other important question.. If earnings remain poor,you think the share price up or down?

Maybank dividend comes from its operation profit and cashflow and almost consistently every year throughout.

For share price to back up after ex-date, it is actually simple, the company shows good profit and dividend to shareholders in the financial result.

Share market is not a place to "pray", share price is not 4D lottery, you pray abc stock price to hit a number.
Every share price in the market is backed up its own pillar aka the company's ability to generate profit and worth.

That's why it is always important to look at company financial result.