i see. But if you have been holding thus far, wouldn't it be better if you wait until Airasia share goes above 1.50, then convert? Or just buy Airasia stock to average down now? Coz the loan stock costs 0.75, conversion costs another RM0.75, but Airasia share is only 0.79 now.

You do not need to pay an extra Rm0.75 to convert the loan stock. It's exchangeable on a one for one basis

This post has been edited by Cubalagi: Jan 2 2022, 09:27 AM

ah, I understand now. Thanks!

But u raised a valid point. If me I will probably just hold the RCUIDS to get the 8% interest and only convert when the mother share gets much higher. This is of course assuming a more bullish view of Air Asia long term (if not bullish then why subscribe in the first place?).

I would like to hear the reason WHY one would be bullish in the company on the long run...

Yeah.. air travel should easily improve in the near future but the whole structure of AA is so fundamentally weak. Too many deep holes to cover.

For example... we are still talking about a company burdened to death with plane leases totalling over 10 billion.

That's like a fix long term payment of leases which runs over 100 million per quarter....

Then the obligations to buy new planes, which is way above 100 billion (no typo here)...which means debts will soar in the future.

The loan stock. At 8% per annum.. that's another long term debt.

Yup...pls tell me why...

I have no idea why you are really hating on AA but my beliefs are I want exposure to airlines and its an industry controlled by MAS which is a government entity or its AA which to me its a discruptive company that challenges a status quo.

Second reason is if it can weather the mcos and covid Pandemic and delve it's hands in food delivery and banking. It is a resilient company.

Dude. It is not about hate. What I said on the previous post is all based on facts. Is lease liabilities above 10 billion currently? Is obligation to buy new planes above 100 billion? These are all facts. Fundamental facts which prove the company is in deep shit.

I avoid talking beliefs.

Secondly, food delivery? Its super apps are losing money. Millions. Do refer their reported numbers. Banking? What banking?

is the warrant allow to convert to mothershare like the RCUID?

Yes but the conversion fee is 1.0.

Btw.. Put all feellings aside... no need talk love/hate. Pointless la.

So covid, did huge damage on the sales revenue but let's look at the numbers.. what hurt AA really bad?

Me? What I see was.

1. Excessive hedging which led to hundreds and hundreds of million in hedging losses. If not mistaken, close to 1 billion on hedging losses.

2. Leasing.

3. Debts.


3 issues which were horrendously managed.

This post has been edited by Boon3: Jan 4 2022, 10:51 AM

bro can you give example for this?

RM1 is the exercise price.

okay means it is worth to convert if mothershare is beyond RM 1.xx . .

we can convert or sell this within 7 years right?

Yes.

The warrant is currently "out of the money".But you can see it's trading at about 0.20 on bursa. That's the market valuation of the warrant's "time value" as the warrant has a duration of 7 years.

hehehe.... ya... proper england is exercise price.

Ya, It has 85 months lifetime before expired. Still have time to perform.
The only matter is whether AirAsia could survive or not?

AA food delivery is a joke, too bad not April yet. Management already have problem with bike team due to their usual tactics of squeezing everything & everyone.

Exactly!

Fundamentals at this point is most crucial because the loan rights c/w warrants happened because it's a billion dollar fundraiser attempt to rescue AA.

The last reporter QR...



yaa..... we can see clearly the superapp/digital/big pay are all losing money.... and yea... part of the money raised from the loans stock issue will be dumped into the digital business...

The debts AA is carrying...



The lease burden ... 13.9 billion!!



The new planes on back order.... 97 billion!!



( all of which I would argue that is all AA own gross mismanagement!! )


and this is where the money of the 1 billion loan stock issue will go to... (500 million goes for working expenses )




how? Can AA survive based on these numbers??

Strange thing is that the stock has a -0.81 NTA (based on latest quarter)...today is traded at 0.81!!!

Yup... many thanks to Bursa, AA was not reclassifed as a PN stock....