Icon8888 Gossips About Stocks
(Icon) Air Asia (6) - 5 Reasons To Be Greedy When Others Are Wary of Air Asia
No introduction required, I will go straight to my 5 points as per below.
1. Early Stage of Re Rating Those who have experienced the 2015 furniture stocks bull run will agree with me that we are still at early stage of re rating for Air Asia.
The furniture industry re rating began in early 2015 and lasted for one full year. Many stocks in that sector went up by few hundred percents. If not because of recent strengthening of Ringgit, the process would likely have continued.
Good companies with strong earnings visibility are not easy to come by. If you bump into one, cherish the opportunity and hold on to the stock. Don't kill the goose that lay the golden eggs so soon.
LET THE PROFIT RUN.
2. Still Undervalued Air Asia is expected to do well this year. A survey of analyst reports shows that the group is in position to generate EPS of closed to 30 sen.
At current price of RM2.10, the stock is still cheap.
SEEK GUIDANCE FROM FUNDAMENTALS, DON'T LET EMOTION DICTATES YOUR INVESTMENT DECISIONS.
3. Private Placement Will Result In Strong Alignment of Management and Shareholders' Interest Certain investors are excited by the placement to Tony Fernandes and gang ("TF Incorporated"), but certain investors are not happy. The difference in opinion mostly centred on "allocation of value". But there is no dispute that with so much at stake, TF Incorporated will now be motivated to make it work.
MANAGEMENT CUM MAJOR SHAREHOLDERS NOW HAVE STRONG INCENTIVE TO CREATE VALUE. THIS WILL SPILL OVER TO BENEFIT ALL OTHER INVESTORS.
4. Short Term Catalyst I have never heard of a Tycoon that doesn't like leverage. TF Incorporated will almost certainly make use of margin facility to finance their placement subscription.
When come to margin financing, nothing convinces bankers more than strong share price - "Look, it is trading at RM2.50 now, and you are lending me money to buy at RM1.80. Why worry ?"
In a recent interview with The Star, Tony Fernandes mentioned that the Company targets to convene EGM for the placement on 9 May 2016. My guess is that the placement will be completed shortly after EGM, so as to wrap up the entire exercise before release of strong financial results by end May 2016.
TONY INCORPORATED HAS INCENTIVE TO KEEP SHARE PRICE BUOYANT IN THE IMMEDIATE TERM SO AS TO FACILITATE SMOOTH DRAW DOWN OF MARGIN FACILITY BY SECOND HALF OF MAY 2016.
5. Act Contrarian To Blogger Z There is an emerging consensus in i3 that if you act contrarian to Blogger Z, you are likely to do well.
SINCE BLOGGER Z IS UNCOMFORTABLE WITH AIR ASIA, WE SHOULD OVERWEIGH THE STOCK.
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Discussions
5 people like this. Showing 28 of 28 comments
This is typical horse back csnnon loh! When airasis drop past few days keep silent. Now got good news come attack ppl. Pure hypocrite.
If thid guymso dsmn sure, why airsiss not in his stock pick? Pure idiot trying to act smart
2016-04-14 06:40
Wah, i still remember somene ssid wanns tiok kuku if tf pump money into Airasia. Now turnaround another story. Damn low life
2016-04-14 06:42
REBUUUUUTTTTTTTTTTTTT!!!! close eye........BUY!
open eye..........Tony Fernandez kasi lu BUTA MONEY!!!!
Buy AA....FREE MONEY.....easier and safer than robbing bank :-)
AA new tagline: NOW EVERYBODY CAN MAKE MONEY!!!!!!!!!
2016-04-14 07:23
Whenever Mr Icon or Mr SuperMan releasing their findings or analysis, sure paperplane will come to bad mouth. Reasonable or not is not the matter, as long as something shit.
Well say again, Mr Icon.
You always said you want to be Ninja but end up become front line warrior again. :)
2016-04-14 07:46
Z Blogger doesn't really know that it is very very rare to have private placement at market price. To me that put the while placement in a positive light, notwithstanding earning dilution.
2016-04-14 08:59
Everybody is entitled to his or her opinion (at this sort of open forum ). what's important we make money. whether you make more or less at the end of the day (you are not sharing the money with anybody. ) AA is a good theme play. Cheers to all those who share thier ideas
2016-04-14 09:07
statistically speaking , this is time to sell................
but anyone with tycoon ambition, this is time to margin.
tycoons are the small numbers who made it.
2016-04-14 09:24
Air Asia and the prisoner dilemma.
by cooperating between MAS and Airasia, both gets rewarded, end of price war has allowed both to prosper.
2016-04-14 15:04
when the price is high the risk even higher, not worth investing icon8888 become the gambler nowaday
2016-04-15 09:37
well said Icon... honestly speaking, I bought quite a lot of AirAsia when it was trading at 70-80 sen... and I haven't sold a single share of mine yet... But I did not buy any AAX shares... I am more optimistic of AA than AAX...
2016-04-15 10:46
For AAX, if you look into the sales in advance at balance sheet, you will amaze how much is the sales in advance increased compare to last year (from 591million to 778million, which increase by 31 percent). Worry about AAX? Not at all. In my opinion AAX far more undervalue than airasia
2016-04-15 13:16
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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Haha...faye Tan slap her own mouth
2016-04-14 06:24