Good Articles to Share
What ails AIRASIA that its share price has fallen to its 3 year low? - Kelvin S Tan
What ails AIRASIA that its share price has fallen to its 3 year low? Affin Research calls it "Warranted Selling" in its 9 Dec report.
"AirAsia’s share price has fallen by 23%, on the back of several macro headwinds including the strengthening of the US$ against the RM, the tightening ruling and requirement for syariah compliant stock status as well as intensifying fare competition amongst the local airlines, namely MAS.
At current price level, AirAsia is trading at an undemanding 8.1x CY14 PER, 20% below its 3-year historical average forward rolling PER of 10x. We believe this is unwarranted given its market leadership position within its core markets as well as being the most cost efficiently run airline within the region".
Affin Research puts a BUY call with a target price of RM3.60 based on 12X CY14 PER. Fundamentally, Affin Research continue to like AirAsia premised on its; i) lean cost
structure; ii) sound fundamentals, which is well evident from its strong operating
statistics (high load factor, high single digit passenger growth), and iii) group’s
regional growth strategy – new set-up, AA India which we expect to commence
operations by 2H14.
Currently, share price is RM2.22. For me, technically, there is no buy signal trigger yet. So, put on radar. But don't miss it when it turns. Send me an alert.
"AirAsia’s share price has fallen by 23%, on the back of several macro headwinds including the strengthening of the US$ against the RM, the tightening ruling and requirement for syariah compliant stock status as well as intensifying fare competition amongst the local airlines, namely MAS.
At current price level, AirAsia is trading at an undemanding 8.1x CY14 PER, 20% below its 3-year historical average forward rolling PER of 10x. We believe this is unwarranted given its market leadership position within its core markets as well as being the most cost efficiently run airline within the region".
Affin Research puts a BUY call with a target price of RM3.60 based on 12X CY14 PER. Fundamentally, Affin Research continue to like AirAsia premised on its; i) lean cost
structure; ii) sound fundamentals, which is well evident from its strong operating
statistics (high load factor, high single digit passenger growth), and iii) group’s
regional growth strategy – new set-up, AA India which we expect to commence
operations by 2H14.
Currently, share price is RM2.22. For me, technically, there is no buy signal trigger yet. So, put on radar. But don't miss it when it turns. Send me an alert.
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1 person likes this. Showing 7 of 7 comments
Haha. Funny guys here. What ails AirAsia?
Maybe Sir Richard cross dressing, Bullbear constant nagging or MAS.
2013-12-30 22:48
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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....
ryanc
Maybe their share price will go up if they replace their air stewardess with Victoria Secret models?
LOL
2013-12-30 17:56