- What is the future outlook for MAS?
- Are the other airlines almost similar to MAS - KLM, SIA, Thai Airways, British Airways in almost similar situation?
- Is the business competitive?
If you do not see the situation surrounding MAS as positive, what makes one think MAS is undervalued? EPF has just reduced its stake in MAS to below 5% few months ago. If MAS is undervalued, then EPF has done something very wrong. To be fair to EPF, I support its move. MAS is a company that is bleeding money while the situation surrounding issues such as being a national carrier, manpower, and tougher competitors are difficult situation in play.
The current situation faced by MAS is 50% itself's wrong-doing while the 50% is due to situation in the market. There are too many competitors around and it seems that the low-costs airlines are winning - although barely.
At today's valuation (RM0.335), MAS is trading at more than RM5.5 billion market capitalisation. Yes! One would say that it raised more than RM3 billion to survive it. As a Malaysian, I would welcome any suitor whom would try to take the burden off the Malaysian government at say RM6 billion valuation. That would put it at around RM0.36. But to that suitor, sorry no more rescue if you could not make it.
Dare to try?
You know who are the winners nowadays - Boeing, Airbus and the engine suppliers like GE, Rolls Royce.
http://www.intellecpoint.com/2013/08/is-mas-undervalued.html
rikki
According to recent Alliance Research, MAS have not hedged their Foreign Currency Loan. With the US Dollar appreciation against the ringgit, MAS need to repay more in ringgit terms for their foreign currency loan. Jet fuel is also quoted in USD. Therefore, there is a double effect.
2013-08-14 11:13