QUOTE(Brico @ Jan 28 2016, 11:04 AM)
This predicament was very similar to my AAX experience. I refused to average down after burning a few times doing it. Meanwhile as story unfolds and with time i learned more . I had to accept the weakness of this investment. The good thing i find is the management of this company is at least they are not sitting on warm chairs and lots of Hoo Har parties, ( Debatable i m sure by others) They were creative and i hold that factor as single most valued point. However their Finances were in horrible condition, loss quarter after quarter
Share with u something...
I realised that a lot of people buy a stock first then only do homework later.
And some... do partial homework before buying and only do detail homework later.
We humans tend to very impatient and have itchy fingers to press the "Buy" button before figuring what to do with the "Sell" button.
We always think... MUST grab the opportunity now~~!! YOLO~!! Lai la quick profit~!
The above applies to me as I am still human
But as time passes by, we must all evolve for the better.
So... need to exercise more patience, do a tonne of homework and don't get distracted easily.
Just remember, it's not the end of the world if u miss a boat of opportunity.
There are tonnes of such boats all year round.
Just make sure u don't bet on a boat that gives u an express ticket to Holland.
On AAX or AA ...
Different people different assessment.
I know a lot of people who won't invest in such business as it makes no sense for them to do so. Super high capex and borrowings versus minimal margins from a
budget airlines. Somemore subject to the mercy of forex, oil prices and significant repair and maintenance cost.
Others will say... its a good biz model. They like what they see and can "experience".
AA taking up major slices of the cake all around. Winning awards everywhere. Supposedly good management and PR people like Uncle Tony.
Overall sounds good, seems good but is it really that good?
Does the numbers make sense to the valuation and price of the stock?
Is the prospects of the Company really worth your investment now?
How does the Company fare versus other competitors in the same industry (e.g MAB, SIA, Cathay etc).
On a side note... alternatively, u could have invested in the warrants when it was around 4.5 to 5 cents while the mother share was at all time low.
Not sure if u can still climb in on the boat now...
The above is just my 2 cents.