Remember folks, interest rate is steady but jet fuel price is high while the ringgit is weak. So folks, what your take on the next Q?

Investors have short memories! Hahahahahahahah!!

Folks, the average fare for 2Q13 was down at RM159 as compared to RM180 achieved in 1Q13.

For the remaining months of the 3Q13, the forward loads for the are lower than in the prior year with base fares slightly lower than the prior year.

Investors have short memories! Hahahahahahahah!!

Folk, the wise things to do when investing is to use your head & not to follow your emotions! Also never fall in love with any stock especially when there is turmoil in EMs!

Careful now, folks!

The cost environment for AA remains hostile with high fuel prices compounded by a weak ringgit!

So folks with turmoil in EMs, AA current price is too expensive as 2H13 profit margin may be hammered badly as a result of weakening ringgit & high jet fuel price at USD128.40.

Remember folks, a small leak can sink a GREAT ship! Investors have short memories!!

Folks, why is AA still trading below Rm3.00 when KLCI went up more than 40 points from Monday till today? Maybe the 2H13 is not so promising, right!

Remember folks, the worst is not over for emerging markets! More selldown to come which will cause another round of turmoil in EMs.

Investors have short memories!

Folks, with the Fed expected to start decreasing its bond-buying program at its 17-18 September meeting, borrowing costs have climbed for bonds globally. Yields on 10-year Treasuries reached 2.99% on 5 September, the highest since July 2011.

The underperformance of emerging-market debt relative to US corporate notes has been sustained for one of the longest periods in history, the JPMorgan analysts wrote in their report.

“When underperformance causes a selloff in the market and liquidity worsens as a result, you have a huge gapping in risk valuation,” said Edwin Chan, the head of credit research at UBS AG in Hong Kong.

While the rout may eventually present a buying opportunity—Mark McCombe, BlackRock’s Asia-Pacific chairman said China’s economy is stablizing and he’s pretty positive on it—losses for emerging markets debt have the potential to accelerate, BlackRock’s Rosenberg said.

“Emerging markets risk has gone up more than the risk associated with US corporates,” Rosenberg said. “We’re not yet ready to say it’s time to pile into emerging markets.”

Investors have short memories!

Wall Street’s biggest firms are predicting intensifying bond losses in emerging markets, where borrowing costs have already soared to the highest in more than four years versus US corporate debt, as the Fed curtailing record stimulus.

“We’re not yet convinced that we’ve seen the worst in terms of flows out of emerging markets,” Jeffrey Rosenberg, the chief investment strategist in fixed-income at New York-based BlackRock Inc., the world’s largest asset manager said, expressing his own views.

“We see a lot of valuation change but we see the potential for even more valuation change.”

The exodus from developing nations began after Fed chairman Ben S. Bernanke told Congress on 22 May that the central bank could scale back the pace of its $85 billion of purchases of mortgage bonds and Treasuries if the US economy showed sustained improvement.

Investors have short memories!

Folks, Asian stocks rose early Tuesday, ahead of a fresh round of Chinese economic data, signs that Syrian tensions are easing to a glut of positive macroeconomic news from the United States, but can the rally continue?

Investors have short memories!

Emerging Asia's shares may have plunged recently, but with the bull market getting long in the tooth, it's not the time to buy, said Marc Faber, the publisher of the Gloom, Boom & Doom report.

"I don't think there's a lot of money to be made in equities for the next 12 to 24 months," he said.

"We are in a bull market that is more than four years old," with the rally beginning in March 2009, he noted. "Four years into the economic expansion, I don't think that stocks are the greatest bargain anymore."

While he owns shares in Malaysia, Thailand, Hong Kong and Singapore, he isn't interested in increasing his positions. "We have in most economies that publish honest statistics a meaningful slowdown," he said.

"The outlook for technology and capital spending is even worse than it was six months ago. That tells you something about the global economy."

Faber is also negative on China's markets. "Even if you're a believer (in the China story), you still have to sell the stocks you want to buy. Because the good companies are very expensive and the lousy companies are so questionable that you shouldn't touch them to start with."

Investors have short memories!!

Anyone who has flown in the past year knows that the passenger cabins are routinely packed nearly as full as the overhead bins.

The trend over the past decade has been clear: Higher costs driven by jet fuel prices have prompted airlines to pack their planes.

And carriers aren’t even making bigger profits from the crowded planes: The industrywide “break-even” point maybe has gone from 64.4 percent in 2000 to 75.9 percent last year for Asia Pacific region.

Folks, one reason planes are full is because they have to be to avoid losing money. The airlines had to push really hard on the load factor lever because they couldn’t push hard with the pricing.

And don’t assume airlines are seeking to fill every seat on every flight in a bid to grab every possible dollar of revenue. “Volume is expensive.” Whether it’s a restaurant, a plane, a zoo, a nightclub — the more people you process, the more costs you are going to incur.

Airlines also must retain a certain level of unsold seats for passengers with full-fare, changeable tickets, work-related travel by their own employees, federal air marshals, and reserved areas where crews can rest. All those keep load factors from reaching anywhere near 100 percent.

Hmmmmm......going up! Careful folks! Only a close back above MYR2.60, however, could lead to a rebound.

Bharatiya Janata Party leader Subramanian Swamy moved the Delhi High Court Monday challenging the central government's clearance to proposed low-cost airline AA India and alleging wrongdoing in the process.

The plea may come up for hearing Wednesday.

The government March 26 approved Malaysian low-cost airline AirAsia's proposal to set up a new airline in India in partnership with the Tata Group and the Arun Bhatia-promoted Telestra Tradeplace.

On Aug 16, the Supreme Court had asked Swamy to move the high court with his plea.

The petition challenged the clearance granted by the Foreign Investment Promotion Board (FIPB) to the proposed airline on the ground that according to the policy, foreign investment was only permitted in an existing airline but AA India was not an existing carrier.

So how now, folks?

Employees Provident Fund Board:
Disposed 04/09/2013 343,700

EPF selling? Why? Hmmmmmm.......!!

Regulated Short Selling On AA:
05/09/13 Rm2.59 1,182,000
06/09/13 Rm2.54 938,500
09/09/13 Rm2.52 2,106,700 (Latest)

Careful now, folks!

AK 1487 09/09/2013 11:25 PM SIEM REAP-KUALA LUMPUR CANCELLED
D7 0171 09/09/2013 10:30 PM JEDDAH-KUALA LUMPUR CANCELLED
QZ 8206 09/09/2013 07:35 PM JAKARTA-KUALA LUMPUR CANCELLED

AK 5220 09/09/2013 09:00 PM KUALA LUMPUR-KUCHING CANCELLED
AK 5124 09/09/2013 08:20 PM KUALA LUMPUR-K. KINABALU CANCELLED
QZ 8207 09/09/2013 08:20 PM KUALA LUMPUR-JAKARTA CANCELLED
AK 1486 09/09/2013 06:35 PM KUALA LUMPUR-SIEM REAP CANCELLED
D7 0170 09/09/2013 02:35 AM KUALA LUMPUR-JEDDAH CANCELLED

View here: http://flight.klia.com.my/fids.aspx

**Emerging markets have around USD7.4 trillion in foreign exchange reserves, invested primarily in U.S., Japanese, euro zone and U.K. government securities. If emerging-market central banks move to sell these holdings to support their weak currencies or the domestic economy, then the **sharp rise in interest rates will attenuate the increase resulting from the reduction of monetary stimulus. This will result in immediate large losses to holders. It will also increase financial stress, adversely affecting the fragile recovery in developed economies.

Emerging market **currency weakness is driving a rise in major currencies, such as the US dollar. This will erode improvements in cost structures and competitiveness engineered through currency devaluation by low interest rates and quantitative easing. The higher dollar would truncate any nascent recovery.

Over time, the destabilizing effect of national actions and complex policy cross-currents may accelerate the move to closed economies, damaging global growth prospects. And like a drowning man grabbing another barely able to swim, the policies may ensure that both drown together.

Folks, the “this time it’s different” crowd argue that critical vulnerabilities like fixed exchange rates, low foreign-exchange reserves & foreign currency debt have been addressed in order to avoid another emerging market “death spiral.” This is an overly optimistic view. **Structural changes may slow the onset of the crisis. But real economy and financial weaknesses heighten the risks.

While local currency debt has increased, levels of unhedged foreign currency debt are significant. Where the debt is denominated in local currency, foreign ownership is significant, especially in **Malaysia, Indonesia, Mexico, Poland, Turkey and South Africa. **Currency weakness will cause foreign investors to exit, increasing borrowing costs and decreasing funding availability.

Remember folks, fundamental weaknesses and a weak external environment limit policy options. The IMF’s capacity to assist is constrained because of concurrent crises, especially in Europe. So how?

Folks, there’s reason now to fear a rerun of this economic collapse in the emerging markets, triggered by rapid capital outflows and a rising U.S. dollar. How will AA fair if there is a repeat of 1990s debt crisis that threaten global growth?

The basic trajectory is familiar: Weaknesses in the real economy and financial vulnerabilities rapidly feed each other in a vicious cycle. Even if the reduction of excessive monetary accommodation in developed economies is slow or deferred, the fundamental frailties of emerging markets current account deficits, inadequate investment returns and high debt levels will prove problematic.

Capital withdrawals will cause **currency weakness, which, in turn, will drive falls in asset prices, such as bonds, **stocks and property.

**Decreased availability of finance and higher funding costs will increase pressure on overextended borrowers, triggering banking problems which feed back into the real economy.

Credit rating and investment downgrades will extend the cycle through repeated iterations. Policy responses will only compound the problems.

Central bank currency purchases, money market intervention or capital controls will reduce reserves or accelerate capital outflow. **Higher interest rates to support the currency and counter imported inflation will reduce growth, exacerbating the problems of high debt. Remember folks India, Indonesia, Thailand, Brazil, Peru and Turkey have implemented some of these measures.

A **weaker currency will affect prices of staples, food and fuel. Subsidies to lower prices will weaken public finances. Support of the financial system and the broader economy will pressure government balance sheets. Folks, the truth hurts!

AirAsia may fall further after failing to get above the MYR2.60 resistance level last week. A position can be exited as long as the stock stays below MYR2.60, with supports lying at MYR2.33, if the MYR2.45 level is broken.

A close back above MYR2.60, however, could lead to a rebound. Strong resistance is expected at MYR2.85 - RHB Research

Folks, let me summarize for your easy reference 2Q13

Revenue:
(2Q13) Rm 1.246b (Less)
(1Q13) Rm 1.300b

Operating expenses:
(2Q13) -Rm1.002b
(1Q13) -Rm1.045b

Finance Income:
(2Q13) Rm14.306m
(1Q13) Rm19.771m

Finance Costs:
(2Q13) -Rm109.412m (Up)
(1Q13) -Rm106.294m

Foreign Exchange gains/(losses) on borrowings:
(2Q13) -Rm122.718m (Up)
(1Q13) -Rm37.688m

Forex gain/(loss) on amt due from associate:
(2Q13) Rm8.228m (Up)
(1Q13) Rm4.889m

Current Taxation:
(2Q13) -Rm6.262m

Deferred taxation:
(2Q13) -Rm47.999

Share of results of jointly controlled entities:
(2Q13) Nil
(1Q13) -Rm2.346m

Share of results of associates:
(2Q13) Nil
(1Q13) -Rm1.420m


Profit after tax 2Q13 b4 AA Japan sale gain: -RM19.917m
####################################


Gain on disposal of interest in AA Japan 2Q13: Rm78.265

Profit after tax :
(2Q13) Rm58.348m (Less)
(1Q13) Rm104.793m

Cash and cash equivalents:
(2Q13) Rm1.639b (Less)
(1Q13) Rm2.156b

Trade & Other Payables:
(2Q13) Rm1.233b

Total Debt:
(2Q13) Rm8.813b (Up)
(1Q13) Rm8.464b

Net Gearing:
(2Q13) 1.56 – after cash deduction on debt
(1Q13) 1.39 – after cash deduction on debt

1. Yes folks, a LOSS of Rm19.917m if without AA Japan sale gains.

2. As reported forward loads in Malaysia for the remaining months of the 3Q13 are lower than in the prior year with base fares slightly lower than the prior year.

3. A recipe for disaster: high jet fuel price plus weak ringgit! So how will 3QE13 be?

4. Jet fuel price for Asia & Oceania trading on 30/08/13: USD128.40

5. No dividend recommended for the quarter ended 30 June 2013

6. 51.92% of AA were held by foreigners

Happy Investing, folks!

Folks, indefinite growth is not a realistic expectation, yet investors often expect rising stocks to gain forever.

Putting a price on the upside and the downside can provide solid guidelines for getting out while the getting is good.

Similarly, if a company or an industry appears to be headed for trouble, it may be time to take your gains off of the table.

There's no harm in walking away when you are ahead of the game.

Remember folks, high jet fuel price, weak currency, interest rate hikes, selldown in EMs, etc are formula for disastor & soon "everyone can buy" cheap AA share!

Just be patience & you will be rewarded! Heheheheh!!

Much can change overnight in a company and an industry. An investor who researches an investment and buys one day, feeling that the company and its future are strong, may be panic-stricken and ready to sell the next day when unexpected news threatens his or her perceptions of the security of his or her long-term investment.

Wonder why long term investor like Wellington & other foreign funds are disposing AA aggresively? Careful now, folks!

Hahahahahah....KLCI up 20+ points and yet AA is still stagnant! Why folks? Maybe AA still on bearish trend and going to test it critical support level at Rm2.44?

If critical support level broken then all hell brake loose! Only time will tell! Heheheheheheh!!

AirAsia India set to miss its December take-off deadline and might have to defer the launch of its domestic operations to early 2014, as the process to procure an operating permit would take three months.

Read more here: http://www.sify.com/finance/airasia-india-set-to-miss-its-december-take-off-deadline-news-airlines-njjdA4hcbid.html

09/09/2013 TP rm3.78 MIDF
22/08/2013 TP rm3.94 RHB
22/08/2013 TP rm3.78 MIDF
22/08/2013 TP rm2.95 MAYBANK
22/08/2013 TP rm3.51 KENANGA
22/08/2013 TP rm2.90 HWANGDBS
22/08/2013 TP rm3.08 HLG
22/08/2013 TP rm3.45 CIMB
22/08/2013 TP rm2.80 AMMB
22/08/2013 TP rm4.20 ALLIANCE
16/08/2013 TP rm3.94 RHB

1. AirAsia may fall further after failing to get above the MYR2.60 resistance level last week.

2. A position can be exited as long as the stock stays below MYR2.60, with supports lying at MYR2.33, if the MYR2.45 level is broken.

3. A close back above MYR2.60, however, could lead to a rebound. Strong resistance is expected at MYR2.85

Source RHB : http://klse.i3investor.com/blogs/rhb/

hmmmmmmmmmm.....interesting!!

Folks, many investors base their decisions on emotions, rumors or chasing the next hot opportunity, and they often end up losing money as a result. But despite their setbacks, they continue with the same behavior and keep getting the same results.

Emotion is one of the most common of human experiences. The fear and greed many individual investors experience often clouds their ability to rationally think through an investing opportunity. This results in poor investment decisions and usually a loss of money.

For example, even though it is in an investor's best interest to sell high and buy low, investors hate to sell winners and are reluctant to buy out-of-favor stocks. Further, many investors hold onto winning investments too long. When they fall back, they continue to hold on to them, hoping they will return to their new highs. They even tell themselves that they will sell - if the price returns to the level at which they bought it.

Then there are the investors who hold on to losing investments for too long. They hope that if they wait until their shares recover, they can sell to at least break even, sometimes even adding to a loser. Meanwhile, their capital is tied up in a losing investment and is, therefore, unable to produce a return. This reduces account balances and increases stress levels. Most investors cite holding investments too long as the mistake that was most detrimental to their success.

So folks, are you one of them? Hmmmmmmmmmm.......!!

Short Positions:
Taking a short position, also called short selling, occurs when you sell shares that you don't own in anticipation that the stock will fall in the future.

If it works as planned and the share price drops, you must buy those shares at the lower price to cover the short position. For example, if you short ABC stock at $35 per share and the stock falls to $20, you can buy the shares back at $20 to close out the short position. Your overall profit would be $15 per share.

Regulated Short Selling On AA:
05/09/13 at Rm2.59 Vol: 1,182,000
06/09/13 at Rm2.54 Vol: 938,500

How now, folks? Buy, Sell or Hold? Heheheheheheh!!

The ringgit hit 1USD/RM3.329 on Friday. It was the second worst performing currency last week, after the Japanese yen, depreciating -1.3% against the greenback, the most in five weeks. Year-to-date, it has lost -8.1% against the dollar. On trade-weighted basis, the real effective exchange rate of the ringgit had declined -8.13% since the year’s high in April

• Bank Negara’s statistics for July released last week show that the foreign selldown in the bond market had been more substantial in ringgit term (which is unsurprising as the overhang of foreign portfolio liquidity in the bond market is about three times more than
that in the equity market). The cumulative flow of foreign liquidity to the bond market for the period Jan-Jul 2013 was already in the negative territory, at -RM4.16b. In contrast, the corresponding figure for the equity market, but for the period Jan-Aug 2013, was still in the greenzone at +RM7.92b.

• Foreigners sold a whopping -RM12.3b in the bond market in July. During the same month, the amount sold in equity was only -RM213m.

• The selldown in the bond market started earlier, in May, which was after the ringgit hit post-Crisis high in April. The selldown in equity only started in June.

• The risk of continued outflow of foreign liquidity, especially from the bond market remain high as the inflow had been strong since mid-2010. The continued threat of this outflow is expected to keep the ringgit under pressure for quite some time. Malaysia has to make a strong case to convince the funds to remain in the country.

Source: MIDF

Foreign funds exited Malaysian equity for the sixth consecutive weeks. Foreigners sold Malaysianlisted shares amounted to -RM901.8m net in the open market last week.

• In the last six weeks, a total amount of -RM8.0b or -USD2.43b of foreign money had exited Malaysian equity. Still, there remained an overhang of +RM7.0b or +USD2.5b of foreign portfolio capital in Malaysian equity market as of Friday. This is only the money that entered in 2013. Since Jan 2011, the cumulative overhang (based on net purchases in the open market) amounted to +RM22.6b or +USD7.6b. Therefore, Malaysia remained vulnerable to foreign selldown in its equity market.

• Foreign funds were net sellers every single day last week. The selling in the open market had now stretched for 29 out of the last 30 trading days. However, we note that the quantum of the selldown tapered signifi cantly, to an average of only -RM180m per day last week, compared with an average of -RM425m and -RM580m per day in the preceding two weeks.

1. AirAsia may fall further after failing to get above the MYR2.60 resistance level last week.

2. A position can be exited as long as the stock stays below MYR2.60, with supports lying at MYR2.33, if the MYR2.45 level is broken.

3. A close back above MYR2.60, however, could lead to a rebound. Strong resistance is expected at MYR2.85 - Source RHB

Price Performamce:

1 month:
(28/08/13) Rm2.44 - Low
(12/08/13) Rm3.20 - High

6 months:
(28/08/13) Rm2.44 - Low
(05/06/13) Rm3.54 - High

One Year:
(28/08/13) Rm2.44 - Low
(05/06/13) Rm3.54 - High

AK 1487 08/09/2013 11:25 PM SIEM REAP-KUALA LUMPUR CANCELLED
QZ 8206 08/09/2013 07:35 PM JAKARTA-KUALA LUMPUR CANCELLED
AK 5233 08/09/2013 01:40 PM KUCHING-KUALA LUMPUR CANCELLED
D7 0173 08/09/2013 07:25 AM JEDDAH-KUALA LUMPUR CANCELLED

QZ 8207 08/09/2013 08:20 PM KUALA LUMPUR-JAKARTA CANCELLED
AK 1486 08/09/2013 06:35 PM KUALA LUMPUR-SIEM REAP CANCELLED

View here: http://flight.klia.com.my/fids.aspx

Psychological or behavioral traps that lead people in the wrong direction:

The Bottom Line
Human psychology is a dangerous thing, and there are some alarmingly standard mistakes that people make again and again.

It is very easy in the heat of the moment, or when subject to stress or temptation, to fall into one of these mind traps.

The wrong perceptions, self-delusion, frantically trying to avoid realizing losses, desperately seeking the comfort of other victims, shutting out reality and more can all cost you dearly.

Be aware of the nature of these traps and always be honest and realistic with yourself. Furthermore, seek advice from competent and knowledgeable people of integrity who will bring you back to reality before it is too late.

http://www.investopedia.com/articles/investing/060513/avoid-these-common-investing-psychology-traps.asp

Psychological or behavioral traps that lead people in the wrong direction:

Superiority Trap
For some people, the superiority trap is extremely dangerous. A lot of investors think they know better than the experts or than the market. Just being well educated and/or clever does not mean you don’t need good independent advice and, even more so, it does not mean you can outwit the pros and a complex system of markets.

Many investors have lost a fortune through being convinced that they were better than the rest. Furthermore, these people are easy prey for some of the other traps mentioned above.

There are (and have always been) professors of finance at the best universities who really are brilliant technically, and this can delude them into thinking that the pickings are easy out there in the real world.

Some really do cut it, but others are in for a rude awakening beyond the ivory tower. Odd as it may sound, someone with a Ph.D. in finance may in fact lead you in the wrong direction (too calculating, too confident), while someone with no more than a high school diploma may have an amazing feel for the market and make a fortune.

Psychological or behavioral traps that lead people in the wrong direction:

Reality Trap
The relativity trap is also there waiting to lead you astray. Everyone has a different psychological make-up, combined with a unique set of circumstances extending to work, family, career prospects and likely inheritances.

This means that although you need to be aware of what others are doing and saying, their situation and views are not necessarily relevant outside their own context.

Be aware, but beware too! You must invest for yourself and only in your own context. Your friends may have both the money and the risk-friendliness to speculate in pork belly futures (as in the movie "Trading Places"), but if you are a modest earning and nervy person, this is not for you.

Psychological or behavioral traps that lead people in the wrong direction:

Blindness
Situational blindness can exacerbate the situation. Even people who are not specifically seeking confirmation often just shut out the prevailing market realties in order to do nothing and postpone the evil day when the losses just have to be confronted.

If you know deep down that there is a problem with your investments, such as a major scandal at the company or market warnings, but you read everything in the newspaper apart from the financial pages, you are probably suffering from this blinder effect.

Psychological or behavioral traps that lead people in the wrong direction:

Confirmation Trap
Linked to the above is the confirmation trap. People often seek out others who have made, and are still making, the same mistake.

Make sure you get objective advice from fresh sources, rather than phoning up the person who gave you the bad advice in the first place.

If you find yourself saying something like, "our stocks have dropped by 30%, but it’s surely best just to hang onto them, isn’t it?" - you are seeking confirmation from some other unfortunate in the same situation.

You can comfort each other in the short run, but it’s just self-delusion.

Psychological or behavioral traps that lead people in the wrong direction:

Sunk Cost
The sunk cost trap is just as dangerous. This is about psychologically (but not in reality) protecting your previous choices or decisions, which is often disastrous for your investments.

It is truly hard to take a loss and/or accept that you made the wrong choices or allowed someone else to make them for you. But if your investment is no good, or sinking fast, the sooner you get out of it and into something more promising, the better.

If you clung to stocks that you bought in 1999 at the height of the dot.com boom, you would have had to wait a decade to break even, and that is for non-hi-tech stocks.

It's far better not to cling to the sunk cost and to get into other assets classes that are moving up fast. Emotional commitment to bad investments just makes things worse.

Psychological or behavioral traps that lead people in the wrong direction:

Anchoring!
Firstly, there is the so-called anchoring trap, which refers to an over-reliance on what one originally thinks. For instance, if you think of a certain company as successful, you may be too confident that its stocks are a good bet.

This preconception may be totally incorrect in the prevailing situation or at some point in the future. For example, the German consumer electronics company Grundig, which was the major European supplier in the 1970s, was wiped out in the 1980s by competition from Japan. Those trapped in the perception that Grundig was there to stay, lost a lot of money.

In order to avoid this trap, you need to remain flexible in your thinking, and open to new sources of information and the reality that any company can be here today and gone tomorrow. Any manager can disappear too, for that matter.

1. The ringgit is likely to trade lower against the greenback next week on weak market sentiment, a currency dealer said.

2. The local unit might move between 3.31 and 3.35 against the greenback after recent trade figures showed that imports surged more than exports.

3. "We will continue to see strong interest in the US dollar but it will depend on sentiment in the currency market," the dealer said.

4. The ringgit will also come under pressure in line with regional currencies as fear grows that the US Federal Reserve (Fed) will start cutting its stimulus programme.

5. The Fed's move will start soon," said United Overseas Bank Group, Economic-Treasury Research.

6. As a result, the research house said capital outflows would spark concerns of a 1997/98-type of crisis scenario in Asia with the greenback strengthening and US Treasury yields moving higher.

7. Historically, higher US policy interest rates were followed by financial crises in emerging markets but the likelihood of such a repeat in Asia this time round was low, it said.

Read more: http://www.btimes.com.my/Current_News/BTIMES/articles/20130907115453/Article/index_html#ixzz2eHpnqL00

A small leak can sink a great ship, folks!

Another round of selldown in the making for the coming days? Well folks only time will tell!



1. Posted by BullBear > Sep 6, 2013 11:26 AM | Report Abuse X

WELLINGTON MANAGEMENT COMPANY
Disposed: 29/08/2013 4,224,200
Disposed: 30/08/2013 4,913,500
Acquired: 30/08/2013 6,900
Disposed: 02/09/2013 4,793,000
Disposed: 03/09/2013 1,906,200

Selldown by one of the foreign fund in EMs.
- Not so promising 2QE
- No dividend was declared during the 2QE13
- High jet fuel price
- Weak ringgit

2. Posted by BullBear > Sep 6, 2013 08:26 PM | Report Abuse X

Short-Selling Transacted:
05/09/13 at Rm2.59 Vol: 1,182,000
06/09/13 at Rm2.54 Vol: 938,500

Folks, another round of short-selling today. Could there be another selldown in the EMs by foreign funds next week? Will Rm2.50 hold?

Careful now!

1. AA India may have to defer the launch of its domestic operations to early 2014 as the process for the issue of an operating permit can take upto three months.

2. The airline which is targeting a December launch is still to secure a no objection clearance from the civil aviation ministry.

3. Once it receives this clearance the airline will have to make an application for an operating permit.

4. Last month the Directorate General of Civil Aviation issued the air operator certification manual which stipulates the application for a permit must be submitted atleast 90 days before the date of intended revenue operation.

5. Separately, the regulator has drawn up a time line of tasks to be completed within the 90 days and that includes document evaluation, inspection and five review meetings with the applicant.

6. The 90 day period is an indicative time limit and the actual process can take place quicker or can stretch longer than three months in case of non completion of formalities.

7. AA will have to file a schedule with the DGCA to start services once it receives the permit.

8. November-December is a peak season for travel as it coincides with Diwali and Christmas holidays. Passenger loads in the two months are strong and allows airlines to charge higher fares.

9. Thus ideally AA would like to start its service in December as passenger drops in February-March.

So folks, how will Mr. Market react to this news tomorrow? Heheheheh...

Are MAS and AirAsia the only ones carrying the can for this deal but not the elite army of consultants who worked on the share swap without realising it would flout business rules?

Read more here: http://my.news.yahoo.com/fines-mas-airasia-consultants-020851315.html

QZ 8206 06/09/2013 07:35 PM JAKARTA-KUALA LUMPUR CANCELLED
QZ 8207 06/09/2013 08:20 PM KUALA LUMPUR-JAKARTA CANCELLED


QZ 8295 07/09/2013 09:20 PM SURABAYA-KUALA LUMPUR CANCELLED
AK 1343 07/09/2013 12:55 PM PEKANBARU-KUALA LUMPUR CANCELLED
QZ 8296 07/09/2013 09:45 PM KUALA LUMPUR-SURABAYA CANCELLED
AK 1440 07/09/2013 06:30 PM KUALA LUMPUR-HANOI CANCELLED
D7 0172 07/09/2013 11:30 AM KUALA LUMPUR-JEDDAH CANCELLED
AK 1342 07/09/2013 10:50 AM KUALA LUMPUR-PEKANBARU CANCELLED

View here: http://flight.klia.com.my/fids.aspx

“When businesses agree to share markets, they are agreeing to stop competing, at the expense of the consumers,” said commission chairman YAA Tan Sri Siti Norma Yaakob.

Read more here: http://weechookeong.com/2013/09/07/airasia-mas-were-fine-rm10-million-for-violation-of-anti-competition-act/

Short-Selling Transacted:
05/09/13 at Rm2.59 Vol: 1,182,000
06/09/13 at Rm2.54 Vol: 938,500

Folks, another round of short-selling today. Could there be another selldown in the EMs by foreign funds next week? Will Rm2.50 hold?

Careful now!

The cost environment for AA group remained hostile throughout the year with the weakness of the ringgit and continued high oil prices being the key challenges.

Remember folks, most of the borrowings are dominated in US dollar. After feeling the pinch of weak ringgit against USD & US interest rate hikes, AA is looking to raise yen-denominated funds for the first time as it prepares to take delivery of seven aircraft next year.

Cash and cash equivalents:
(2Q13) Rm1.639b (down)
(1Q13) Rm2.156b

Trade & Other Payables:
(2Q13) Rm1.233b

Total Debt:
(2Q13) Rm8.813b (up)
(1Q13) Rm8.464b

Will the price rm2.50 hold for the coming days? Remember folks short selling done yesterday is already making a paper profit of 10cents today!

Hmmmmm.....!

Folks, of course some of these stocks are cheap for a reason and will stay cheap for years to come. Falls in currencies real are a worry, eroding foreign investors' returns from local stocks.

John-Paul Smith, head of emerging equity strategy at Deutsche Bank says companies from the developing world can sustain return on equity (ROE) levels only by taking more debt.

Remember folks, ROE measures how much profit a firm makes with shareholder's money.

It would be inaccurate to perceive Emerging Markets equities as cheap relative to returns they generate because their quality of RoE is deteriorating more rapidly than developed markets.

So how?

Remember folks, never fall in love with a stock as its not going to be a faithful & loyal lover!

Folks optimism is denial, so face the facts and move on. It is wise to direct your anger towards problems not people, to focus your energies on answers not excuses.

Remember short-selling at an average price of rm2.59 with 1,182,000 units done? Somemore bad news in the AA closet? Hmmmmm...!

1. Indonesia’s emergence as one of the largest and fastest growing markets in Asia will be reinforced over the next couple of months as Garuda and Lion Air surpass Singapore Airlines to become the largest carriers in Southeast Asia based on fleet size. As groups, Garuda and Lion will also end 2013 with more aircraft than the SIA Group and the AirAsia Group.

2. Garuda took delivery of its 100th aircraft in late Aug-2013 while Lion plans to take delivery of its 100th aircraft in late 2013. Currently only one airline in Southeast Asia, Singapore Airlines (SIA), has over 100 in service aircraft. But SIA’s fleet, which currently stands at 102 aircraft, will shrink to 101 aircraft over the next few months while Garuda and Lion will continue to rapidly expand.

3. Reaching the 100-aircraft milestone is a significant achievement for both Garuda and Lion. The other major flag carriers in the region, Malaysia Airlines (MAS) and Thai Airways, also currently operate over 90 aircraft. Hmmmmmm.....!!!

Careful now folks as someone short-selling AA shares yesterday at average price of 2.59 with 1,181,000 shares done.

The last short-selling, AA price dropped to rm2.44! Investors have short memories!!

Folks, MAS and AA have been slapped with a RM10 million fine each for violating the Competition Act 2010 in their 2011 collaboration agreement.

The Malaysian Competition Commission (MyCC) in a statement today said that in drawing up the agreement, the two were guilty of "market sharing" according to the Act.

"Market sharing is considered a serious infringement under the Act as it is deemed to have the object of significantly preventing, restricting, or distorting competition in any market for goods and services," said MyCC chairperson Siti Norma Yaakob.

"When businesses agree to share markets, they are agreeing to stop competing at the expense of their consumers," she said in a statement.

The shares swap agreement, signed on Aug 9, 2011, violated Section 4(2) (b) of the Act, the commission said.