wats ur view for this counter? i mean for TA n FA...

wats d price to catch rebound n why that price...



IMHO, it is formin double tops ( d probabilities to succed increase if it close below 1.57 n below)




for long term, 1.38+- shud b a good price to buy.. but d lower trend line must hold

AIRASIA borrow lots of money in US currency. I think it may due to US credit woes tat affects AIRASIA.

so what is the problems? If the US dollars continue to slide, airsia can use the junk dollars to stockpile more petrol. Better still if the us bank kaput no need to pay loan back The US credit woes is tightening the airplane head that why the share price cannot fly

Well fundamentally AirAsia made the right choice switching to the more efficient A320 planes which saves a lot on fuel costs. But with the spiralling crude oil prices, the next quarter might see it lose some profit to it's higher operating costs which it managed to lower in the last quarter.

The decision by Tony Fernandes not to add fuel surcharge to their fare unlike other airlines who tend to pass the fuel costs to their customers, will likely mean AirAsia will either need to hedge against the rising fuel costs effectively OR lower it's costs even more while absorbing the higher fuel prices.

The future of AirAsia will likely lie on their international routes and the newly opened KL - SG route. Their local routes are probably not going to rise and fall as much since they are holding the majority of routes. With more flights to China and possibly to Europe, AirAsia's only way to survive is to grow as fast as possible and fly as cheap as they can.

In my opinion RM1.59 for a share in AirAsia is already a good price, as the market is being flooded by their substantial shareholder dumping their stock, it will probably go up again when the selling pressure stops. Last news shows that their oversea substantial shareholder dumped as much as 6 million shares to the market on the 18/12/07 while still holding about 137 million more.

AirAsia has almost RM4 billion in long term debts from purchasing all the planes. Mostly in US and Euro currency. As long as they are still making enough money to re-pay those loans, they aren't going bust anytime soon. AirAsia has been making profits since listed, and will probably make more if the oil prices stabilise.

As the price drops 16% from 1.91 to 1.59, the volume increase 3606% from 1.3 to 49.9 millions shares. 36 times in 2 weeks. These may be the classic example of buy on weakness.

Yes, I come across a report that said KL-SG is one of the most profitability route. That's why Mas was complaining to gov when Airasia allowed to fly this route which was monopolised by MAS.

I don't know the credit crunch issue did hit Airasia or not. But last Monday, when Australia properties group, Centro said it had difficult to refinance its debt due to credit crunch did make a lot of portfolio managers staying alert on those high gearing company. I don't know this is conincidence with the Airasia recent plunge or not. Although high probably Airasia won't be affected as those planned bought planes had been financed properly before contract signed, just may be fund managers want to reduce some exposure.

To see whether company is able to repay loan, one should look at its cash flow statement/situation, not profit or through its P&L. P&L won' tell you this story/issue. Should look at its balance sheet and cashflow statement. Company can make tons of profit but ended with negative cashflow as well, bare in mind.

Based on chart, immediate support should be at 1.60 level. Strong support is seen at 1.40-1.45 level. Short term chart does show a downwards trend but posie to have some technical rebound due to oversold indicator.

Above information doesn't necessart correct. Don't mean to recommend to buy or sell. Judge your own.

My target buy price is 1.50 level. will make some angpow $ when it rebound to 1.70 level.

i do not noe... but IMHO, if there is extreme chnages in volume, means there will b major changes in trend...


edted:



i better stay sideline... i still need one more stabilise lows to confirm d trendline's channel..

good luck to u

This post has been edited by low yat 82: Dec 24 2007, 12:24 AM

tony is the key of air asia, most of the decision he made by himself. h is strong but if he done a wrong move it will be a big problem. oh well they are thres too t help him. but got to see how

AirAsia Bhd's share price felt a downdraft over the last three weeks. That caused its price to spiral downwards amid heavy selling to a nine-month low of RM1.59 on Friday.

That occurred after two foreign brokers issued reports late last month, warning that the budget airline company was vulnerable to oil options it took on. Counter-parties could exercise their call options to buy oil from AirAsia at US$90 a barrel, which put it at risk if oil rose above that price.

Its CEO Datuk Tony Fernandes said those options "have been taken out with a plain vanilla option at US$79 two weeks ago." Hence, "there is no exposure anymore" to the early option, he told this column.

It is observed the airline has started to show a trend of high growth as its operating profit rose to RM145.7mil in its first quarter ended Sept 30, 2007 compared with RM52.8mil in the same quarter last year. This could be attributed to economies of scale as Asia's biggest budget airline rapidly expanded under a management astute at managing its fleet operations and finances.

-- so will we be seeing AirAsia stopping it's southward heading? --

where did you get this article?

This is at Star Online. Go check out the Business News

they better go up, i got it at 1.95.....

LOL.. hope it listens to you, ante..

pls go up 1.95 la.. wanna let go liao.

looking at chart, the 120days MA is in the downtrend. Shortterm to go 1.95 is hard bro...

i just averaged it to 1.80.

This post has been edited by ante5k: Dec 31 2007, 05:20 PM

if u ask me, d stock got no where to go except south... there's been quite alot people were stuck at upside..if they buyin up now, there's certainly got huge sellin pressure unless they r vry bullish ab this counter..

goodluck

There has been renewed selling pressure on AirAsia after a relief last week.

of course la..who ask them to speculate on oil prices

every mth loss USD1.2M