AirAsia is truly lucky as US regulators are investigating on commodity futures. This would serve as a knee jerk reaction to current oil prices. HOWEVER, i do hate to see the US government intervene to limit speculative positions for hedge funds, ETFs. ITS about time we find newer sources of energy to solve our current food and energy crisis.'

As for AirAsia, Tony Fernandes didn't impress me at all with his interview on European SquakBox yesterday.

Either way, he's very lucky man that many many many hedgefunds and ETFS are selling their positions due to the investigations.

Unfortunately, AirAsia never explains its debt situation with Malaysian Airports nor how they can cope with the rising fuel. Its a creative accounting that entices buyers of the shares to keep averaging down. With rapid expansion undergoing in AirAsia, it's a matter of time it GOES down when the government decides to get its money back from AirAsia.

Are you guys kidding me??? IF OIL reaches USD150, AIRASIA sure go BK.

AirAsia is not a solid stock; if it is then why it couldn't afford to pay Malaysia Airports RM 100 million.
Not to mention, rapid expansion and poor risk management will see this company crash and burn.

I think you can short AirAsia. Contact your brokerage and ask.

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Added on June 10, 2008, 6:35 pmIn the end AirAsia sold to Malaysia Airlines for 1 ringgit! LOL!!!

This post has been edited by AdamG1981: Jun 10 2008, 06:35 PM

HOLD it if you purchase below one ringgit. You won't regret it.

Tomorrow those who purchased below RM 1 should sell.

Actually, i take my words back. AirAsia is now charging every checked in bag @ RM 10 each / RM 5 if purchased online. So if oil prices continue to go down, they have extra revenue from the price increase.

Oil is now trading @ 115. So did anyone sell its AA stake yet??

Hold it, oil will drop to USD 110 in the coming week or so. Within a week, you will see AA trading about 1.2-1.3. I am not surprised if AA hit a high of 1.20-1.25 tomorrow.

Yes, it probably well. But there's a flip side of it. Once you made a decent profit, you have to run. Malaysia is entering a recessionary period; so even if the oil price drop, AA's passenger load will decrease especially in South East Asia.

Remember, run if you make a decent profit, and buy back during dips.

Unfortunately, no. You need volume to sustain the run up in prices.

Fundamental wise, AA is not so much better than MAS. IF you read along the lines, Tony Fernandes is not going to renew the contract with MU over the sponsorship deal. This might affect AA's plans to be "globally" known since MU is a much bigger brand name than AA. Also, with the pending recession, passenger load is decreasing.

My main point is, AA's is a cheaper bet than MAS. IF you are looking for a multiple points profit, its better to buy AA than MAS.

Tony's best bet is if the jet fuel prices can stabilize. Since overall demand for air travel in Malaysia, Indonesia and Thailand are declining, i wouldn't be overly too bullish about AA unless it cuts it capacity and defer its purchase of the remaining airbuses.

LOL, fundamental wise is telling me AirAsia will be breaking down!

You are in the wrong room MPH, go back to FX!

This post has been edited by AdamG1981: Jan 11 2009, 03:19 PM

If you want to buy AirAsia, this is not the price i would purchase. Maybe 60-70 cents.