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AirAsia has got the courtesy to put IAA in order before the merger with IAAX.....


Will there be gain on disposal of IAA later... to set off against the 474.2?


This.. the reason the merger is a LIKE..................................................................

I see.. Ferisc is no longer shaken and stirred... ; )

Yes.... the internet of things... AirAsia is in the game...

Monetization of its internet of things

And... bear in mind the merger....

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I am surprised that you all are surprised by the 474.2m..... I didn't know you all didn't know..


This 474.2m is NOTHING NEW.....I knew about it in AUGUST..... All the people that matter already knew about it in AUGUST... and IBs have factored it in in their FV...


Look at this one from HLB...... Date: 21/08/2015


Somewhere in the middle.... you see...


....Expected AAB to recognize share of unrecognized losses portion of RM474.2m.....


Yet...... Price Target : 1.98



And... Wellington keeps buying from EARLY SEPTEMBER..... despite knowing about this in AUGUST...



But... to dump or not.. all upto you..


http://klse.i3investor.com/servlets/ptres/31841.jsp


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This is much better than the RCPS option...

I still like the merger idea....

This latest... looks like IAA no longer an associate of AA as I have expected....

This is good...

I still like the merger idea....

Fund raising from Indon locals must be successful to maintain 51:49... IAA is actually getting bigger with AAX coming in....

I still like the merger idea....

Yes good for AAX too.... IAA has got a lot of potential... being at the tail end of its long gestation period

Yes good for AA......

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What?? GMT conspiracy claim again??!!?? ; )


ewawa So means aax will.absorded the lose of iaa, n aa can cut the lost??

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Ya... to me... IAA no longer an associate of AA or at least AA having a lesser %..... at this moment is a good thing.. at the least GMT would not keep shouting consolidate the losses consolidate the losses... and the new bigger IAA would have better capacity to pay debts


And........... AAX would enjoy in future when IAA is profitable

Without knowing the details.............. first impression is.... as IAA is focusing on international routes.... seems logical to merge the two

Quite a surprise the merger....

As a condition IAAX has its own planes as such its share capital should be bigger

It would appear IAAX has positive shareholders fund too as the merger will result in IAA having a positive shareholders fund

If IAAX is absorbed into IAA.... then it is likely AA and AAX would both be shareholders in IAA controlling 49%..... and likely with AAX having a higher %..... and IAA no longer an associate of AA

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The Bond.... really calm the nerves



r°Moi .

RM strengthening.... looks like the mother of all goodbyes from MGS is not happening.....

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30/09/2015 15:54

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Not all window dressing la...

a bit abit window dressing... a bit a bit good news from IAA... a bit a bit RM... a bit a bit due to low price....

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hng33 the fastest hand in i3.. sure you can follow?? lol

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RM strengthening.... looks like the mother of all goodbyes from MGS is not happening.....

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No la... I just look see look see only la

I follow you here la... : )

This one no Aabar main nak tak nak nak tak nak also 52wk low... sure won't go lower some more??

Short sellers like CIMB too... but so far small scale.. any big one coming for a change??

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Quarter ending September window dressing


Something from Indon... no not the haze.... the IAA


Generally buying on the low..........................

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Ain't it good if AirAsia can drop to 0.765 again.......

Whole world in limbo....

IAA operation will not be suspended on 1 October for sure....................

Will there be AirAsias 1st window dressing since GMT..... DJ and RM are really not helping....

I trade as well as hold long term

To me.. AirAsias various problems.. have high chances.. 85% of being solved satisfactorily.. thus providing positive catalysts

You.. can buy and wait... or... wait and buy

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I LUV U

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target price of RM2.59.

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r°Moi like this Macquarie analysis a lot because r°Moi has said many times AirAsia is complicated... AirAsia is complicated with many moving parts...


Now... Macquarie too is calling AirAsia.... Ms Complicated... finally someone who understands.. someone who is so on the same page... someone who thinks alike... r°Moi dont feel lonely anymore.. cos there is someone who understands



....research report titled “Understanding Ms Complicated”, MER stated that they maintain an “Outperform” rating with a lower target price of RM2.59.


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r°Moi .
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Good news for AirAsia



50 AirAsia airplanes have been booked by jamal for an unscheduled flight to send in a few thousands Felda pakcik and makcik.. mat rempit... to do a perhimpunan at Wall Street... to showcase silat to the Ang Mo.. to teach the Ang Mo a lesson....what junk grade!!


What do you mean junk grade??


That is right encik jamal.. go Wall Street.. don't keep going to Petaling Street..


Yes... go teach the Ang Mo the FBI the WSJ FT NYT a lesson....


To try and get them.. to look the other way... to turn the other cheek... like what you are trying to do to the locals


Go go go jamal Go Wall Street


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25/09/2015 08:04

Ha.. glad that you like it


7up8up r°Moi, you are good! and your Jamal joke made my day. LOL
25/09/2015 13:52

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After the short sellers are gone.....IBs come out to blah blah blah at high FVs

The only way is up... up up up

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This Ang Mo says FV 2.59

http://klse.i3investor.com/blogs/kltrader/83428.jsp


s AirAsia going bankrupt?
Author: kltrader | Publish date: Fri, 25 Sep 2015, 10:34 AM

On Tuesday, Macquarie Equities Research (MER) released a report on AirAsia, analysing the low-cost airline’s fundamentals and responding to investors’ queries whether the company is on the verge of bankruptcy. In the research report titled “Understanding Ms Complicated”, MER stated that they maintain an “Outperform” rating with a lower target price of RM2.59. Read on excerpt from the report below to find out more…

According to press, AirAsia was the target of short-sellers amid accounting worries, with claims that the airline uses related-party transactions with loss-making associates to boost its earnings and requires US$1.9bn in funding. Yield-to-date (YTD), AirAsia’s share price is down 55% vs FBMKLCI’s -4.5% YTD. In this report, MER re-examines AirAsia’s fundamentals, key drivers, balance sheet position and cash flow strength, and answers the key question that investors may have: “Is AirAsia going bankrupt?” MER maintains an Outperform rating with a lower target price of RM2.59 from RM3.04 as MER inputs the in-house fuel and forex forecasts, while lowering the yield assumption to reflect weaker consumer sentiment in Malaysia. Indonesia AirAsia now contributes negatively to MER’s standard of operations (SOP).

Accounting treatment is a sector-wide issue
Across Asia, airlines would need to align themselves with local partners in order to operate under each country’s bilateral flying rights, as majority foreign ownership is not yet allowed. Thus, AirAsia cannot have legal control or legal power over its associates, resulting in equity accounting being applied. Similarly, operating lease income (fixed rate US$ over 5-7 year contracts) received from associates is recognised as revenue, instead of being consolidated. Accumulated unrecognised losses of its associates was a concern raised but according to accounting standards, AirAsia only needs to equity account losses up to its investment amount. Unlike its competitor Singapore Airlines, which has more cash surplus, AirAsia puts minimal investment into its JVs as AirAsia believes its low unit cost and shorter flight range requires less operational cash.

Is AirAsia going bankrupt? Or in need of funding?
Learning from others to understand the present. Key similarities that led to Japan Airlines’ “pre-packaged bankruptcy” in 2010 and Malaysia Airlines’ bailout in 2014 were high staff unit costs, low staff productivity, and operating the fuel-inefficient B747 (for JAL) and aging fleet (for MAS). This, however, does not apply to AirAsia, with its flat management and no unions, and operating only the narrow-body A320s (average fleet age of 5.2 years) which are considered to have a stable market price due to liquidity in the secondary market.

Cash is king. AirAsia has managed to generate operating cash flows (OCF) of more than RM1bn from 2009 to 2013. MER estimates the US$/RM would need to go up to 5.25 before AirAsia’s OCF is insufficient to service its interests, which could be the first sign of distress. Also, up to 2Q15 AirAsia has entered 10 sale-and-leaseback (SLB) transactions, raising gross proceeds of RM900mn (YTD is 13 SLB transactions). Note that there are no stringent financial covenants imposed on AirAsia that could increase the risk of a cash call.

Management’s execution in its associates to regain investor confidence remains key driver of share price
MER’s fair value scenario analysis suggests investors are wary regarding the recoverability of receivables owed by Indonesia AirAsia (IAA) and Philippines AirAsia (PAA). The share price is currently trading at 1x 16E P/BV minus the receivables (RM1.24). Recapitalisation of Indonesia AirAsia (IAA) and Philippines AirAsia (PAA) along with management’s forecast of profitability of IAA and PAA in 3Q15 and 4Q15 respectively would be key catalysts in the near-term. A potential future catalyst is the monetisation of assets, including its leasing business, which could see deleveraging of its balance sheet.

Source: Macquarie Research - 25 Sep 2015

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This Ang Mo says 2.59...

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The Auditor General Tan Sri Ambrin Buang is a principled good man

The Attoney General................ errrrr

BNM Zeti... the Auditor General Encik Buang... the Petronas Ex Chairman Encik Shamsul.. current Chairman also looks like good leaders

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Ain't it good if AirAsia can drop to below 1.00 again...............

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Good news for AirAsia



50 AirAsia airplanes have been booked by jamal for an unscheduled flight to send in a few thousands Felda pakcik and makcik.. mat rempit... to do a perhimpunan at Wall Street... to showcase silat to the Ang Mo.. to teach the Ang Mo a lesson....what junk grade!!


What do you mean junk grade??


That is right encik jamal.. go Wall Street.. don't keep going to Petaling Street..


Yes... go teach the Ang Mo the FBI the WSJ FT NYT a lesson....


To try and get them.. to look the other way... to turn the other cheek... like what you are trying to do to the locals

Go go go jamal go Wall Street...


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Junk status...

Well... don't just stand there... do something!!



Book 50 AirAsia airplanes for jamal to send in a few thousands Felda pakcik and makcik.. mat rempit... to do a perhimpunan at Wall Street... to showcase silat to the Ang Mo.. to teach the Ang Mo a lesson....what junk grade!!


What do you mean junk grade??


That is right encik jamal.. go Wall Street.. don't keep going to Petaling Street..


Yes... go teach the Ang Mo the FBI the WSJ FT NYT a lesson....


To try and get them.. to look the other way... to turn the other cheek... like what you are trying to do to the locals


Go go go jamal Go Wall Street


Good news for AirAsia


.

.


Good news for AirAsia



50 AirAsia airplanes have been booked by jamal for an unscheduled flight to send in a few thousands Felda pakcik and makcik.. mat rempit... to do a perhimpunan at Wall Street... to showcase silat to the Ang Mo.. to teach the Ang Mo a lesson....what junk grade!!


What do you mean junk grade??


That is right encik jamal.. go Wall Street.. don't keep going to Petaling Street..


Yes... go teach the Ang Mo the FBI the WSJ FT NYT a lesson....


To try and get them.. to look the other way... to turn the other cheek... like what you are trying to do to the locals

Go go go jamal


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O... I told you just now you didn't see?

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Oil cheap cheap...

Car cheap cheap??

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In the short term.... the only worry is that... the short sellers overcoming the real buyers..

But....now.... how likely is that??

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Hold long term till the day when the benefits of low jet fuel are fully reaped and fully reflected in the profit is it?

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USD loans.... tenure: 14 years


Extra income from low jet fuel price.. per Tony for 2016: 600,000,000

Say.... to pass some to customers.. take just 400,000,000 per year


400,000,000 × 14 = 5,600,000,000


Yes.. you were saying... how much is that sundry expense... the forex translation loss again??

And... furthermore...forex risk is hedged



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HaHaHa

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Normalisation

AirAsia is going thru.... normalisation.... normalisation

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