475mil losses /SO=2782mil=0.17

The exercise is expected, as guided by management to address the negative equity of IAA. However, the more crucial question is the ability of IAA to find a third party subscriber for the remaining 51% of the perpetual securities to address the negative equity position. Note that, the negative equity as at 2Q15 was IDR4.2bn. Risk would be AirAsia having to fund the remaining securities, if IAA is unable to secure a third party investor, which could eventually result to a cash call by AirAsia. For now, we maintain our BUY recommendation on AirAsia with a target price of RM1.85 (10x CY16 EPS

once out of PN17!!! SEE IT BLOW TOWARD 0.50!! 3X BETTER THAN DIE BTM right?

who need this kind losing money? Buy 0.45, sell now 0.30??
Mana logic ni??

yes. wait

ya, sleep forever

KUALA LUMPUR: Alliance DBS Research has downgraded AirAsia to fully valued with a target price of RM1.05 after it proposed to convert its debt from Indonesia AirAsia (IAA) into perpetual securities.

The research house said on Friday this corporate exercise will not take IAA to positive equity while third party investors’ participation remains crucial

It said the key question is whether IAA can eventually turn around.

To recap, AirAsia converted 2.1 billion rupiah (RM621.5mil) of the 4.3 bil (RM1,292.4mil) due from IAA to perpetual capital securities in the latter. The capital securities carry a deferrable coupon rate of 12% per annnum, and are redeemable at 101% of the nominal amount.

This transaction is aimed to help IAA attain a positive equity position, as directed by the Indonesian Directorate General of Civil Aviation. Post-transaction, AirAsia will immediately recognise a RM474.2mil loss representing its share of unrecognised prior year losses in IAA.

Alliance DBS Research explained that the conversion would not take IAA to a positive equity position, as its negative equity was 4.2 bil rupiah as at end-2Q15. Thus, third party subscription to the balance 51% of IAA’s perpetual securities (which is uncertain) is crucial for IAA to remedy its negative equity position.

Also, failure to attract third party investors into IAA would mean AirAsia will have to continue funding the former, a drag on AirAsia’s cash flow which may ultimately result in a cash call.

“The million-dollar question remains whether IAA can eventually turnaround. Unfortunately, IAA is facing strong headwinds in the near term, given the rupiah’s depreciation vs the US dollar, and the competitive environment in Indonesia.

“If IAA continues to be loss-making, AirAsia may have to make further impairment on its investment in IAA including receivables.

“Our RM1.05 TP (1.3 times FY16F adjusted book value per share) is unchanged, as it has accounted for the prior year losses in IAA. But, we downgrade AirAsia to Fully Valued, as the recent rally as unjustified in our view, given the risks in IAA,” it said.

*Adios Tony!

1.05 TP from Alliance

this icon Is really rude

broken down also easy...........hahaaaaaaaaaaaaaaa

slowly die back

Current asset=103,547
current liability=129,646

POWERFULLLLLLLLLLL

0.20 coming soon!!!!

sam, oh sam........RM5 soon

1.49,hahahhaaaaaaaaaaaa

haha.

470mil is really nothing, if fuel cost saved

(The company may be able to save $160 million in fuel costs next year when its hedging ends, Malaysian state news service Bernama reported Aug. 18, citing AirAsia group Chief Executive Officer Tony Fernandes.)

160milx4=640

Also I like stockraider, respected Calvin. I made tons in superln this yr thanks to stockgod and stockraider. Next 70% to 100% in rgb maybe till next yr I expect.

Ya, I like OTB. But not gkent. I can still use my mind to think, me not pasar malam goreng kaki OK, I don't jual char guae tiao

Haha. Keep , just keep. Why talk so many?? So unconfident?

Merge muamalat? Lousy deal

If know will rise can all in loh, why still Need study? As good as fortune teller.

Seriously, only ppl dunno stock will buy this stock

OTB alredi said Ghent in 2016 stock challenge, sure Huat, why u all need comment everyday? So nu confident?

I'm still supporting ,not still support. Why grammar so bad? Is this teacher quality we want nowadays in malaysia? Pity those kids

Yay a. Great one. What? If u own this forum?

Actively trading

Why wanna waste time reply my comments???
So unconfident?

Some ppl earlier keep come here say support gadang, mana ITU orang?

So how? Sai lang???

Haha. Go buy it! Vt stock, sure can goreng mah to moon! Bjcorp good example

See? It hardly break 0.30....BMW??? BMW woh. BMW lah? BMW oh no?hahaha

I am banned multiple times, if I care???

Haiya, rosmah, ask your husband step down lah, then only our economy only can good.....

Also slowdown in tech can be dangerous. And most OEM might go into countries like Thailand, Vietnam!, now cambodia, and Laos! Malaysia old manufacturing doing OEM will loss their contract very fast and it can be easily replaced by these countries lower cost labor....

Lucas chan, u think I care? Hahahaaha......

Adding latitude with so high price now is bad advise to me...

Very fast! This bintai going to collapse! So high debts in sgd!!!!! From myr 2.70 to now 3.10 just one quarter!
I see long long how this stock going collapse

Also saschl, I dunno what is ur trading skill or exp like?? Why would some one stop buying just because someone saying some seemingly true statement in internet???
If I were you I am so damn confident, I go ahead just buy stock I did analysis. See OTB?? He go ahead to buy gkent regardless who is pm. If you are experience and skillful, why not just ignore my comments and go ahead to buy as you like??

I can only say tech stock biz is volatile. They rely on others contract! Most Malaysia tech company doing low value added manufacturing! This is known facts. If you go study mier professor report he even show it in his presentation. That why Malaysia econom ic so hard to grow! This is what my guai lou CFO told me also and I tend to agree him more. We do not have those tech techincal like Taiwanese, not even to the extend of competing Singapore our neighbour. Sad thing but true facts

saschl
181 posts
Posted by saschl > Oct 1, 2015 08:09 PM | Report Abuse

Miss Paperlane2, out of 10 counters U hv visited, 9.5 counters U have posted negative remarks which seem to be rational to people like us who still has superficial knowledge and experience in stocks investment, while in actual fact it may be irrational/fault finding and baseless claims, however, this has caused great deal of stress to us,, It seems U always portray to be different, distinguishing yourself from the masses, can U plse stop doing this? We will not blame you for not saying so bec we lose money due to the reasons that U have intended to mention here. However we definitely will blame U if for the seemingly true reasons posted here that scare us off from buying into this counter and eventually lose the chances to make some money. Can U please stop doing this? Amitabha

Saschl, I am giving my view only. You can agree or disagree. I see risk while others see profit and it is human nature to feel greedy. So? I think I have freedom to give my view, while ppl like you owning many stocks have self interest asking me to stop posting my view on risk. Well, I can only say you don't own this forum right? I can give view on risk so others can consider. Why I must listen to others view? I like to do my own independent thinking. And! Time proven my right, frontkn is the most obvious case study if you were to see my comments many months ago when everyone chasing like crazy!

As I said earlier, this Sam latest good result due to recovery in manufacturing of HDD, instead of aero related biz. So? Ask itself is it sustainable???

Well, like I told msny to avoid Frontkn also. Last time PPL making hu hah only Frontkn Taiwan biz lah, this lah tht lah. Finally tumble doen! As its profit affected by oil n gas!

Ya

Of course. Pls don't blame others on the Frontkn losses. Investment is Ur sole decision

Snake? So?

what? take credit now?>

finally........

haha. Ok OTB, you da men