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 Airasia, Airasia

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cherroy
post May 26 2008, 03:51 PM

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QUOTE(SImPle PLan @ May 26 2008, 03:41 PM)
AirAsia could raise the ticket price higher and pass the cost to the consumers. Better services would b provided to compensate the higher ticket price.
Rising oil price is not sth tat is unexpected. It would come sooner or later. A gud management team shuld b well prepared for it.

AirAsia wuld jz survive tis kind of situation. Recommend: Hold.
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The problem start arise when MAS come into the picture with the offering of RM0 ticket price which mean MAS wants to compete with Airasia, so it could be some ticketing pricing pressure on Airasia, which they can't simply pass the cost to customers.
cherroy
post Jun 10 2008, 09:25 PM

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QUOTE(AdamG1981 @ Jun 10 2008, 06:34 PM)
I think you can short AirAsia. Contact your brokerage and ask.


Added on June 10, 2008, 6:35 pmIn the end AirAsia sold to Malaysia Airlines for 1 ringgit! LOL!!!
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Airasia is included in SSF (Single Stock Futures) so technically you can short its futures. But SSF is dead and buried, never a single trade on it being done since launched, now nobody care or even put a bid/ask either, it is ashamed for KLSE derivatives market.
cherroy
post Jun 26 2008, 09:22 PM

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QUOTE(howszat @ Jun 26 2008, 04:31 PM)
Now 0.85 , is it an uptrend?
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Looks like a technical rebound rather than uptrend, as this stock already fell severly for the last few week.
cherroy
post Jul 24 2008, 09:42 PM

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QUOTE(klmc @ Jul 24 2008, 09:25 PM)
Latest filing by EPF to bursa
Acquired 18/07/2008  1,000,000 
Acquired 21/07/2008  1,000,000
They are still buying , a million shares each trading day , how long can it last? Already pushed this counter up past 1 $ ...

So smart these EPF fellows , they knew the oil bubble was going to burst is it?
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No, they don't. Just it is norm for EPF to buy whenever market is heavily down time and those index linked stocks are being beaten hard down. In fact, EPF is buying several heavyweight of KLCI across the board recently after KLCI hit nearly 2 years low of 1,100 points.
They are the ultimate and final support of KLSE on most of the time to prevent market falling too deep.
cherroy
post Jul 30 2008, 08:59 AM

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QUOTE(klmc @ Jul 29 2008, 11:59 PM)
well, ok , after 2 days of non movement , we are finally going to see some action tomorrow ( wed ), last half hour AA moved 2 - 3 ticks upwards with respectable buys ... oil dropped 3$ !! It's now at 121$ , DJ up 160 points as of 12 noon US time ....

Now the worrying news ... EPF is buying AND selling AA stocks  ( buy 2 million , sell one million ) ... so if it goes up, there'll be profit taking by EPF .... Tony and another director has announced thier "intention to deal " , which either means they are going to either sell or buy shares in AA ... probably sell ?

Prediction ... will shoot up in the morning ...but profit taking will set in at ? 1.09 ? 1.10 ?

This stock will go up but have to hold ..... TP ?  1.20 ?
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EPF might sell some of the stake previously bought, taking advatange of recent rise (as oil price drops significant last night) it is a norm pattern for EPF behaviour in the market. Down sharply, come in to support and buy, then up significantly then dispose some to free up the cash for rainy day next time. They are at both end of trade most of the time.
They won't buy indifinitely that's for sure, as they have the interest to maintain good health of their portfolio as well as this stock market in general.

Having said that, it should be quite positive for Airasia, expect to go beyond 1.10 at least this morning.

This post has been edited by cherroy: Jul 30 2008, 09:00 AM
cherroy
post Aug 4 2008, 11:36 AM

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QUOTE(robertngo @ Aug 4 2008, 11:00 AM)
just going to the LCCT you can know how good is the business, now they are building a new Tune hotel at LCCT and also doing expansion on the terminal, Their growth look very good, the only problem is fuel but this problem is also face by all competitor, if anything people will fly more with AA because ticket getting more expensive from full service airline. thinking of buying some AA stock my self.
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Business revenue is one thing, profit is another thing. Nobody doubt its business is expanding rapidly, but stock market or shareholders mostly care is the company ability of generate enough profit for the shareholders. Enough (relative to its share price) is the key word, not profit alone.
More business without more profit will not be seen good by the market.

Bare in mind, Airasia is one of the company that running at high gearing one.

Don't mean to comment it is good or bad. Just to highlight that stock market is always concern about profitability level that can generate for shareholders. By looking at surface (good business in LCCT etc) won't be giving any hint or clue how the company is doing. Better look at its financial report which is the ultimate and more accurate way to judge.

Just my 2 cents.

This post has been edited by cherroy: Aug 4 2008, 11:37 AM
cherroy
post Aug 4 2008, 11:56 AM

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QUOTE(klmc @ Aug 4 2008, 11:44 AM)
Their next financials will be utter crap i think , with the fuel price at it's peak since the last quarter , a reason to let go BEFORE their financials come out ?
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People or market already known the coming financial won't be pretty (otherwise its share won't drop from 1.60 to less than 1.00), it is matter how ugly it is. tongue.gif

Market concern now is how well the company weather the storm and position itself ahead to coup with the oil price that matter most situation. No doubt oil price dropping will help the situation but if oil price dropping due to economy run into recession then it won't be good for Airasia aggressive expansion especially when it is on high gearing state.

Don't mean to comment or recommend anything.
cherroy
post Aug 11 2008, 09:16 PM

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QUOTE(Brotherjoe @ Aug 11 2008, 05:52 PM)
Agree.. most magazine are paid by a company to review or write about their company stocks/products..
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Think further if they are accurate each time, then still need to work as editor or analysts anymore? No offence.

Don't get me wrong, those are really good for reading materials and references, but not for blindly believe. As long as one put up an arguement on it why one thinks TP price should be 1.20 or 1.50, then we should look the reason behind of why putting TP at 1.20 in the first place, but not focus on the 1.20. Get what I mean?

You look the reason behind (you don't look at the TP price) then we justify on it whether the reason has logical sense or high possibility that will materiliase or not.

Simple put a stock with TP then without stated the reason of it, then it doesn't tell any story of it.

This post has been edited by cherroy: Aug 11 2008, 09:17 PM
cherroy
post Aug 11 2008, 09:43 PM

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QUOTE(darkknight81 @ Aug 11 2008, 09:22 PM)
One best example is during transmil was RM 14. The edge put TP of RM 18.00.  biggrin.gif
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May be the 'dot' being put at the wrong place, 1.800. tongue.gif laugh.gif Joking only.
cherroy
post Aug 13 2008, 09:14 PM

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QUOTE(sam85 @ Aug 13 2008, 07:42 PM)
my personal view, a company future very much depend on management prospect and experience. In future, low cost flight would be majority choice as nowadays lot and lot more middle class family afford for oversea travel with AA flight.
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I would say both cater different class of customers. Not everyone will choose low cost carrier as well.
Still a lot of mid to high end customers won't opt for low cost carrier as they can afford it and comfortable of service is something they are looking for. Especially those long haul flight and popular destination that cater for mid to high income people are the most lucrative and profitable flight for air carriers.

So both serve different sector of customers.

QUOTE(asambuffett @ Aug 13 2008, 08:41 PM)
If  i read in the annual report ended June 2007.. its EPS was 21cents

The one that ended Dec 2007...its EPS was 18cents.

so hopefully if Im not mistaken..AA has a very good PE of 5 based on June 2007 earnings. thumbup.gif

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Stock market is a forward looking mechanism, how low of previous PER won't affect the prospect of share price, it is the current and near future PER which matter most. So look for 2008 and expectation of 2009 PER is much better way to judge.

Don't mean it is good or not good, just highlight past PER means nothing much in stock market.

This post has been edited by cherroy: Aug 13 2008, 09:16 PM
cherroy
post Aug 28 2008, 09:24 PM

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QUOTE
Current Year Quarter 30/06/2008
Revenue 608,383
Profit/(Loss) before Tax (46,901) 
Profit/(Loss) after Tax and Minority Interest 9,417 
Net Profit/(Loss) for the Period 9,417 
Basic Earnings/(Loss) per Shares(sen) 0.40



Airasia latest Q result is out, seems like market did get it right up to certain extent (share price plunging from above 1.50 to less than 1).

It reported a pre-tax loss and net profit 9 millions only. A sharp constrast drop from previousy Q. They can't escape with the high oil price as well.

That's where past data PE can be misleading. Before lastest Q result, based on last financial result, at 1.00 it would imply a PER of less than 10x, in fact 6 to 7x only. But with lastest Q result, its annualised PER become 62.5x (at 1.00 with Q EPS 0.40 as reported).

Don't mean to say good or bad, just to highlight that PER using past data can be misleading. It is future earning ability that matter the most for share price. So wisely using PER, but not blindly take it.
cherroy
post Oct 5 2008, 09:29 PM

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I really amused to see the news of the company say its share is not reflecting the real valuation. I think market has already price Airasia at normal reason, my opinion only.

Several negative factors that looming on this stock currently are:

1. Lastest quarterly result is lackluster. Pre-tax in red.

2. It didn't give any dividend at all.

3. With likelyhood economy will be slowdown significantly, people worry of its loading factor will continue to drop as more and more plane being delivered.

4. Highly gearing especially at current global credit crisis which those high gearing stocks will be seen as high risk.

Positive factor is oil is dropping fast.

Actually for current market condition, if one wants its share to reflect true value, Give Generous Dividend! based on profit, as simple as that.


cherroy
post Dec 2 2008, 03:56 PM

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A corporate or company will die or not in near future, is not dictated by losses, but dictated by its cashflow.

If the cashflow situation is still healthy, then it has the ability to survive.
cherroy
post Dec 5 2008, 11:03 PM

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Airasia privatisation move is off the table.

As expected, financing is the biggest obstacle especially with global financial credit crunch.

http://biz.thestar.com.my/news/story.asp?f...07&sec=business

This post has been edited by cherroy: Dec 5 2008, 11:04 PM
cherroy
post Dec 9 2008, 09:30 AM

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QUOTE(kb2005 @ Dec 7 2008, 05:14 PM)
Anyone know what is the intitial stock price for Airasia during launching ?
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Forgot already, something like in the region of 1.20-1.30, if not mistaken.
cherroy
post Jan 15 2009, 11:04 AM

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QUOTE(lanux128 @ Jan 15 2009, 10:32 AM)
and by glancing at their financial report, i realize they split their stocks quite often. doesn't seem like a good thing for the investors.

the latest news is the LCCT in Penang, they're very much in the news nowadays.
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Airasia never split its shares since IPO.

They might split before IPO to make the Par value stock become 0.10 each.
cherroy
post Sep 4 2009, 03:50 PM

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QUOTE(DoctorFaust @ Sep 4 2009, 02:35 PM)
Dear all,

(Tell you all first ah, This post actually not really related to our own business, however, it may help us to brain-storm something... perhaps)

Personally, I like AirAsia.

Why? because low cost is the trend! everyone wants low cost. At least 80% of among all population are low cost oriented. It's a huge pie!

Recently quite curious about its operation and been follow-up their reports and research closely. I found out in fact they are suffering lost during year 2008 due to crude oil contract (Don't laugh at me, I am slow)!

I have been thinking if they can come out with something that can overcome it's tight financial sure can buy it's share lo.  drool.gif

Ok, Main topic here is,

Do you have any idea how to improve it's operation, finance, marketing? or any opinion, feeling towards AA?

This thread is just discussing anything related about AirAsia Core Business (Aircraft la, not hotel...  smile.gif ) as the 3rd party of view.

By the way, Is there any other Low cost big pie that havent get explored by those by monopoly/oligopoly ah? (Maybe I am dreaming) But if yes, tell me wo, Maybe we can come out with something really.... awesome.... (Obama said: "Yes, we can!")  rclxms.gif

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Big business is one thing, making profit is another thing, you need to look at both front to conclude a business is good.

Also how to improve operational wise is not something outsiders can comment accurate, although we can suggest from experience from service get, as we don't know how the inside operation is.

For those Airasia shareholders, it is not rewarding for them or yet (share price below IPO while no dividend since IPO), instead you need to fork out extra to have its right issue, instead they give dividend to you.

Airliners are very vulnerable to economy shock, like recession or high oil price, while airliners business nature is always high leverage which exposed more to the shock/risk.
cherroy
post Sep 6 2009, 11:59 AM

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QUOTE(CKC (Sense-Maker) @ Sep 5 2009, 06:29 PM)
No investors in aviation industry makes real money in the past 10 years. Low-cost carrier is the only model that may make money. Air-asia continues to bank on passenger volume by expanding its geographical reach. In the next few years, Airasia will continue putting back wahtever profit it makes to capital expenditure. Its borrowing is high too. MAS is definitely a heavily-subsidized national champion working on unsustainable model, thanks to low-cost model that has shaken the industry, which will continue in turmoil due to its vulnerability to oil price. My take is: avoid even Airasia and only buy it when it dips.
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That's true, even the like most well managed airliner line SIA, share price is stagnat (in fact you could make a loss if bought 10 years ago) for the past decade while compared to other steady consumer staple, commodities stocks, share price has been double or triple in the past decade.

Aviation is a high leverage, high cash burn rate, highly competitive and vulnerable to any economy shock. They can make billion year in year out, but just need an event or economy recession, all profit made from past can be varnished.

Generally I don't view airliner stocks are suitable for long term and steady play, as there are other better alternative stocks in the market offer low risk, while still can enjoy some growth rate, airliner stock is more a trading target.

They are not able to pay much dividend due to high gearing, high cash needed for the operation, which invetors only can rely on capital appreciation side, means one needs to trade the stock, buy low sell high to gain money from the stock.

Just my view.
cherroy
post Aug 10 2011, 12:18 AM

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QUOTE(juicyliana @ Aug 9 2011, 06:18 PM)
hey guys, what is airasia's customer service number? I got a problem booking tickets online. ;(
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Here is stock market section, and specifically talk about Airasia stock/company issue.
Please post this question at Traveling section.
Ty.

cherroy
post Aug 10 2011, 04:39 PM

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The deal is not a merger.

Just share swap between Airasia & MAS shareholder only.
It doesn't affect business wise nor any dilution.

Just there is another deal that free warrant will be issued.

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