Question : Hi, can anyone advise me on the next course of action for MAS? Sell or hold? It seems some of the research houses have putting SELL call for MAS today after its poor quarterly results.

One of the answers : I am buying MAS; managed to get in at almost the lowest price of the day.

Reasons:

1. Much cheaper than Airasia
2. 52weeks High is RM2.40, means more room to grow
3. Awaiting better business plan or restructuring plan to be announced

Taken from RHBInvest's forum.



MAS : As far as technical is concern, MAS is a sell at 1.85 level. I wont give more details as I am using her as a homework for my turtles!! Haha. Yes, see how they(novices) analyse the MAS chart technically. Will it be similar to my point of views?

To answer the question - first of all, we dont know at what price she has bought MAS and dont even know why she bought MAS in the first place? When she bought MAS? No information, how to advise? IMPOSSIBLE to get good answers as she is NOT specific. I am pointing it out as I received many such questions ... running here and there asking for answers which is NOT possble to answer. The possibilities are too many and even you want to help, you cant.

Technically, due to AirAsia link, someone USED that news to push her up. Many retailers chasing her(sound familiar?). Of coz these SHARKS knew many will rush in like hell before they distribute and take profits. Next ... the quarter report is bad? Why many bought in in the first place? Oh ... you mean you dont know MAS is a losing money parasite-glc-company? Investing in MAS? Are you sure you are investing or speculating? Since when MAS give good dividends? Hmm ... the word 'invest' is being loosely used here.

Research houses : Hmm ... sound familiar again? They need to down-grade a stock that losing money, right? When they want to upgrade her, dont worry ... we will have TONY's factor, oil goes down blah blah ... if one if to READ research reports to BUY or SELL ... we are taking a high risk here. Look, these broker houses WANT you to buy or sell so that some trades being done and they earn from the fees charged!! Dont be naive, ok?

SELL call? Hmm ... should we listen? At present bearish sentiments, good counters are being sold-off ... since when MAS is a good fundamental stock? MAS is a good TRADING stock. Getting the word INVEST and TRADE correctly is important as we might easily confused.

I have nothing against the person placing his answer as he has his own views. I do NOT have personal attacks on anyone, just their views.

Learning Corner

1. How do we see MAS is cheaper than AirAsia? Now if you take the price of the stocks, then your view is VERY FLAWED. I believe one should be saying about their valuations - PE, PB, NAV, NTA and such. Fundamental wise, yes. AirAsia reported PROFITS tho declined. MAS reported LOSSES. Oopsss ... which one is cheaper again?

2. 52-week high SHOULD not(or never) be used as a reason to buy as stock prices DO NOT go down by itself. Look ... MAS may not be ever to see RM2.40 anymore ... unless you are a loooong term investor, that I cant say. AirAsia is attaching a growth story to her and many foreign funds are into her. The RISK of AirAsia is VERY high now, but still a very good stock to trade. INVEST? Err ... AirAsia was from RM1, ok? So, please NEVER use 52-week as your yardstick. If a person mention such, I know he is a novice/newbies. The stock prcie will not go to high or new high simply because it was there before!! We have the memory, the stock does not. It is BUSINESS, man. I simply prefer fundamental analysis, actually. Haha.

3. No comment on the third one as I do not have insider news or read much about the current re-structuring. It takes time ... and lots of effort. We shall see how Tony will use his midas-touch. MAS is still a GLC ... still a parasite with many 'crooks' inside there. Unless they privitise her?

Another comment :As W. Buffett suggested, we should avoid totally airline stocks. The money that an airline company earned isn't enough for buying airplanes. Airlines are usually high-debt companies, they have to continuously borrow money to purchase aircrafts to keep with the pace. Airasia may feel proud it could book 200 airplanes in a single order, but how much debt it has to burden? Air industry is vulnerable to oil prices, widespread illness s.a.SARS,H1N1, not to mention the fierce competition nowadays, even the best airline like SIA, it has dropped from $15 to $10 this year. It's so risky to own airline stocks.

Well, this is a much better answer!! This is INVESTOR's point of view. AirAsia is a high gearing counter, if u know what it is. So, it is tradable as MANY like her. We need the crowds to create volume to trade, ok? Growth stories in AirAsia needs to continue to be played ... once the music is over, it is finding emergency-exit door. I will like to watch ... for learning purposes, of coz. Please do tell me you are INVESTING in MAS again, ok?
TEH