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.

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 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 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

CIMB Research also said AirAsia Group sold 79 aircraft to lessor BBAM during 2018 and is expected to sell a further 25 planes to lessor Castlelake by 3Q19F.

Read more at https://www.thestar.com.my/business/busines...Sd3z6XFAZLPz.99

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.

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....

"AA is a digitial transformation company, not an airlines company".

Lol

Buat kacau ah?

There are those who like the product so much that it clouds their ability to judge clearly. Same goes with those caught holding the stock.

The sports team was not owned by Airasia the stock.
And what was the sports team? A chapalang F1 team.
Was the team had so much sporting value that Airbus die die want to sponsor?
50 million USD wo.
Sponsored in 2012.
Coincidence that Airasia placed an absurd order of US18 billion worth of planes with Airbus in 2011.

Surely it would benefited Airasia the stock if that Us50 million was a discount in prices instead of sponsoring a chapalang F1 team owned by Ah Tony.

If Airasia wasn't a stock, how would you describe it what happened?

LOL. If this deal wasnt bribery, why Airbus so stupid and pay so much fine?

https://www.channelnewsasia.com/news/busine...ry-cut-12634966

Money is really tight in AA

Trust me, first thing MCO ends, invest your stocks in tourism industry. Its a bag about to burst.

Msia government imposes a lot of restrictions and taxes than hinders the growth of AA during the years. Right now the government haven announces whether they'll help out Tony or not. It seems the government only wants to bail MAS out.

You think they did OK in their currency hedging? How about their interest rate hedges? These 2 hedges were bigger than their fuel hedges? And both had big swings too. Was AA on the right side of the hedges?

Ok. Coming quarter. Meeeellions of losses are to be expected but these are the few things I am looking at...

1. Total lease.
2. Total lease paid per quarter.
3. How many leasors are allowing AA to defer payment.
4. Total cash burned for the quarter.
5. The next quarter is even greater as it will be for the period Feb to May.
6. Amount due from its subsidiaries.
7. Hedging. Check the amount hedged vs the Dec qtr. If hedges increased, this showed how aggressively Tony gambled when prices went against him....

LOL. I guess I am not the only one bashing AA then.

When you go asset like, I feel that the most important asset left is the cash. That's the last line of defence. But no, AA shot itself in the groin when it decided to give away 5 billion as special dividend. Now it wants help? What's the Cantonese phrase 'Deserve to die'?

Rights issue is one way out. But when you look at the shareholder structure.. Tony and his sidekick, owns more than 60% of AA directly/indirectly. So are these 2 jokers (who benefited the most from the 5 billion special dividend) willing to fork out the money to safe their company? Or do they still believe that Other People Money will save their ass?

They could do a placement of shares to raise money but who would want to buy in an asset light company? And more so in a period such as now when air travel is almost dead for dunno how long....

BTW... which is why I am totally against the bailout. Those 2 owns the big chunk of share. Why should govt bailout the 2 big fat cat?

My view as below

1) SIA received $13bn cash injection to support it to go through this unprecedented crisis. This is the industry that will see much slower recovery for many quarters ahead. 

2) Hedging is part of business, especially for airline. Ryannair 90%,  SIA 73%, Airasia X 80%, KLM 65%. I dont know based on hindsight, how much they should have hedge. But airline need to continue hedge to mitigate their operation risks.

3) Bribery - I completely agree with you. All company should held high esteem on integrity.

right... AA, a private co. is surely looking at... GOMEN!!

can also persuade gomen to armtwist eeepf or kazanar to lend la...

everyone know 1emdeebee methods.