AA shares are climbing! Why so?

means when everybody fly again, it will go double or triple?

I doubt so, may just a change in between 20%-30%

no fly also going up up up

Government funding @ help otw 🤑💪
Sure flying lorh

Very critical....!!

if Malaysians thought like you, we would be an advance country by now.

airasia up because of oil prices up?

should be d other way.

There are many ways to punt on stocks.

I am sure you are aware of it. There are even cases when one can win shitload of money without any reasoning.

Me? I like repetition. I want consistency. Most of all I want to minimise my risks and win big.

This is why I ask such questions to myself if my punt on AirAsia is based solely on the issue of bailout.

The need to know the shareholding structure is important. Those 2 who are accused of accepting bribery holds more than 60% (this includes direct and indirect shareholding) of the company. Could it really happen or is this is a mere wicked speculation spread around just to boost the share price?

If I can't get a handle of this, then how logical is my punt on the stock?

not wild... becos menteli already said it. huge nos. employed, u know.

hahahaha...... sure, if AA were selling oil ......

I agree! Only with a sceptical mind that we can go far!

huhhuh..
now it's make sense..

also since PM & Menteri Mustapa same party..
and big employers is just cover @ excuses only... I feel there's more to it...

Hahahaha. Bail them out just cos of its employees? Smart reasoning. MAHB qualify?

And guess what....

https://www.theedgemarkets.com/article/aira...-tony-fernandes

as expected... question is where will the real money be coming from.

https://www.theedgemarkets.com/article/aira...-tony-fernandes

See, in that article, he openly said the company has more than 2 billion in cash (which is correct but his definition of net cash is utterly wrong as loans and leases needs to be paid) but slyly he admitted his company needs cash.

Why?

That is the more important question.

And imo, it lies again on the company hedging which runs into billions.

1.Fuel hedging. He's got that terribly wrong. 11 million barrel plus as per qr report. Some reports said they were hedged at over 60. Oil price now? How much losses? And with planes not flying, these oil hedges will be a terrible problem.

2. Interest rate contracts runs into the billions. Has he gotten that right?

3. Currency hedges. Ringgit at one point strengthened very strongly against the dollar since the last qr. Then it tanked big time. Two massive swings during the period. Did he gambled correctly.

4. Audit Audit Audit. So huge amounts gambled in its hedging. Even the auditor raised concern. Do refer annual rpt. Me? Too little info and I feel AA is gambling and not hedging. That's my opinion.


Besides the hedging, the sale and lease issue. We know that most of the current cash pile came NOT from its operation but its financing. The sale of the planes raised most of the current cash pile. It's lease liability is now over 12 billion. This is insane. Gila betul.

With planes not flying, a lot of money will be needed to pay leases on planes not flying. Fastest way to burn cash....

And again there isn't much info is there? At what prices are they selling these planes. What was their purchase price. What are the leasing terms? If there is a delay or no payment, will AA be forced to default on their planes? Reports that AAX wa seeking deferrals of payment in Feb 2020 and it was noted that not all lessor will agree.

And yeah, with most planes being sold, how can AirAsia get loan from bank? Not much asset left to pledge mah...

Which is why Tony openly pleads the govt to lend them money.

What a blardy joke. The govt is not a bank la

Anyway, should govt even lend money to a company whose planes are already sold.. income almost gone.... now if the virus situation persist a couple more months and mco persist...how will AirAsia get income? Even when the situation improve, how many will even dare to fly? Won't they be weary? If so even when AA flies again, won't ticket sales be down?

This post has been edited by Boon3: Apr 3 2020, 08:33 AM

Lol. Who is this ?

hahaha.......

how come no one is selling?