Icon8888 Gossips About Stocks

(Icon) Air Asia (10) - All Over The World, Airline Stocks Had Been Re-Rated Over The Past Two Weeks

Icon8888
Publish date: Sat, 16 Jul 2016, 05:06 PM
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I follow the smell of money.

First of all, hat tip to forum member Ricky Kiat for referring me to this video, which discussed why the next ten years will be Golden Era for Airline companies.

https://www.youtube.com/watch?v=36ANWfKqL6g&feature=player_embedded

 

Inside the video, it was mentioned that over the past two weeks, Airline stocks ALL OVER THE WORLD had gone up. I did a quick check and confirmed that this is indeed the case. 

 

It seemed that there is a positive change in sentiment towards airline stocks globally. In my opinion, it is wise to hold on to Air Asia and let the profit run.

 

Please go through the video if you are interested to find out more about the prospects of airlines. 

 

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4 people like this. Showing 8 of 8 comments

Ricky Kiat

57金錢爆 (taiwan)
http://2016.vslovetv.com/search/label/%E7%B6%9C%E8%97%9D%E7%AF%80%E7%9B%AE-57%E9%87%91%E9%8C%A2%E7%88%86

it is a very good financial show i keep tracking every week. help me knowing world financial news. (^o^)

2016-07-16 18:20

tkp2

thanks to Ricky Kiat and Icon for sharing the video, this will help me to hold AA with more confidence.

2016-07-16 18:22

VenFx

I love the 'Four Synopsi ' drama in Ricky' posting.

2016-07-16 18:33

meathere

Good sharing indeed. I think airline stocks are showing resilience here because it fell significantly for Brexit but past weeks bounce back significantly also. So is showing quite a resilience trend currently. The below link has a graph to show this with all the major airlines in UK as well. But it also has mix look on further future outlook on the industry. On the fip side it said "Traditionally, low-cost carriers usually win the day when demand is soft”....maybe relevant for AirAsia also.

http://www.investorschronicle.co.uk/2016/07/15/shares/sectors/will-airline-capacity-be-cut-in-wake-of-brexit-xUWsaC855oHTWBTpWm3HCK/article.html

For US airlines, they see the same upbeat trend according to experts opinion for the industry but also they think likely for longer term investment as they expect to see more actual changes in 2017.

Maybe for AirAsia is from this year since is already so upbeat now. For insurance maybe we can fall back on this: "Traditionally, low-cost carriers usually win the day when demand is soft”

http://www.cnbc.com/2016/07/13/airline-stocks-will-stay-stuck-on-the-tarmac-this-year-traders.html

Live long and prosper
Cheers

2016-07-17 12:12

Lulu La

Icon also watch 57 金钱爆...haha

2016-07-17 13:40

Ricky Kiat

incoming year middle class from china, india & indonesia will increase tremendously ,low cost airline especially air asia will benefit the most. that why Tony decided order more plane even now world economy is sluggish but he is preparing for the demand in future. wise tactic .Brilliant move.

2016-07-17 13:46

Jonathan Keung

the bottom line is fuel oil has fallen from > USD 100 per barrel to below < USD 50 per barrel ( FH 2016 ) Prices are forcast to trade between USD 40 - 50 price range.

Fuel cost accounted for 40% - 50 % of airline operating cost (with US Dollar holding at between MYR 4 - 4.20 ). Air traffic is tending higher with China and India ( the most avid travellers )

Cost of planes ( Airbus) in absolute USD dollar has been trending lower. Euro hit by Brexit and EU woes. Company is willing to lock in orders at big discount over the next 3- 5 years.

Price of a new Airbus ( from USD 125 Million per plane ) has dropped to USD 95 Million per plane. Everything from cost to reveneue is conducive for Airlines ( this is most applicable to LCC airlines not full fledged airlines)

2016-07-18 08:53

fakhrul3379

Cost of fabrication of new AirPlane has also fallen down thanks to drop in crude oil price

2016-07-20 14:05

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