My bet he hedged 70%

I think Benjamin hedged USD around 3.89 ... Not sure what how much he hedged.

skng74 : Yes, it would show in EPS once the hedge is closed. Just for your information, hedge could work two ways.. Profit or loss. At current scenario, AAX is profiting from it. We shall see from Q3 result whether this is true.

That is why TF said 2017 would be the year of AAX. He he he he he.

If hit 5.5 , cash flow hedge profit by AAX would be RM 1.8 billion. AAX would be the most performing airline in Asia.

What is AAX shows cash flow hedge result RM 350 million this financial Q3 quarter ? It may goes up to RM 1 billion next quarter if RM keeps on dropping once the hedge is closed. Maximum , one can hedge only 1 year.

Trump just got elected and he will only be the President in January. After January, his policies will take hold.

But AAX is fundamentally strong because 70% of its revenued is derived from USD and Australian Dollar. IN addition, AAX has hedged currency volatility. So, you know not that AAX had learnt its lesson in 2014 and now it is using its weaknesses as a strength because that is what a good company do.

http://www.thestar.com.my/business/business-news/2016/01/20/buy-for-airasia-x/

So, no need to be scared.

If USD reaches 5.5, domestic banks will get in panic mode.

And of course 1MDB had a hand in scaring investors to park their money in MYR.

George Soros reads Trump head perfectly and precisely. So Najib may hate his advisors for allowing ringgit to free-float after Mahathir had fixed the rate ; and of course Soros could do anything he wants to do now because every single element had falls in place with Trump being the president.

USD will keep on climbing up. Trump measures its policy success by domestic re-industrialization. It will implement 45% tax rates on product imported into US Market. What does that means Many manufacturing company will relocate back to the US. If they relocated back, it means that they will buy USD. In addition, the Japanese is buying the debt in US in anticipating high bond yield. Bond yield had increased since Trump won the Presidential Election.

Since AAX had already taken the pre-cautionary measure, that is hedging its currency and had revenue in terms of USD and AUD, then AAX is already in a much better position compared to many other import related company in Malaysia.

Sorry, It supposed to be in Q2 2016.

Basically 70% of AAX revenue is denominated in USD and AUD. So, that is a natural hedge against USD rate increase. http://www.thestar.com.my/business/business-news/2016/01/20/buy-for-airasia-x/

AAX also hedges its cashflow from risks of currency. In Q3 2016, it made RM 100 million hedge profit. http://www.bursamalaysia.com/market/listed-companies/company-announcements/5183657

Hopefully, AAX would come out fine Q4 2016.

Oh ya .... TF had announced to SC to deal with shares related with AAX. Whether it is 1,000 shares or 10,000 shares or 1,000,000 shares does not matter. No one would want to make loss even it is RM 10.

In January-February 2017, we would see who the winner is - The prophet of doom , or the risk-taker.

Medium term holding is good. 35% passenger increase bodes well for revenue. Oil price will keep stabilizes around USD 45 - 50 range.

Operating profit should be good. Currency exchange paper loss is expected. Net profit before tax may be negative. If it is negative , it must be due to paper loss. Paper loss does not necessarily means actual loss. But , hope this is still a profitable quarters. And remember, AAX does a cash-flow income hedge and it gives a RM 100 million of income as per last quarter. If they have not close the position, the cash-flow income hedge may value around RM 250 million at the end of Q3. That would offset any losses due to the paper financial loss.


TTM P/E Ratio of 19 includes two loss-making quarters in 2015. Q4 2016, would be profitable and likely Q3 2016. I believe . in due time, the P/E would be adjusted to below 10.

http://klse.i3investor.com/servlets/stk/fin/5238.jsp

Happy hunting. This is a stock worth buying.

AAX and AA has been decoupled for few months. Q12016, AA moves from 2.20 to around 3.00. While AAX has dropped before Q1 result to a lower price when Q1 came out. Because AA had moved up, and AAX has moved down and remain stagnant price as today, it is only logical that the the bull in AA is tired. For AAX, the bear is tired.

So, I take Richkid opinion as a pinch of salt. His major mistake is to couple AA and AAX without looking at history.

Price has stabilized. People still fear, volume low. Time to add AAX but need to hold long term. Dont splash things like piranha ya... make it kewl and slow.

richkid .... what ever you said since AAX price meltdown goes against you.

2nd Quarter as many expected , result would be the worst amongst the four quarters. I think that for AAX, some of the AAX profit is being shown in AA account to attract investors to invest in the Leasingco. AA presence is much more dominant as a brand compared to AAX, so showing big profit in AA would be the intelligent things to do by TF and company if they seek investors to buy the leasing co.

Once the leasing co. is sold, then the incentive to bring more profit in AA compared to AAX would partly be reduced because AAX had been the laggard in term of share price since early of the year compared with AA. Assuming the agreement is finalised in the Q3, then more profit will be shown in AAX account in Q3 and Q4, which will be the catalyst of AAX share price increased.

much better boost if Aax profit is more than RM 200million. I dont like to see AA milk AAX profit for its profit.

ngch : Same reason, didnt bought CV,CU coz I could not gamble my money like that.

Expiry time is a big factor even when play cash. Try to consider it before investing.

when time is limited like CU & CV, play short term. Make good profit, fast unload. By 4 months , no value. Dont wait for uncertainties to decide your fate. WA still ok . You got 4 years. Up and down , then up again. Less probability of loss.

CV & CU - ur money are on the edge of the sword. If it comes back they you are safe. CW - your money depends on TF. If he stills want to experiment for the next 6 months and not learn his lesson, then he brings you down with him. WA , AAX - safe you use cash.

if you follow IB , you will lose your house and live on the street. SK Petrol is 1.50 now.

can = can't

Have to forget about AA pull AAX up. These counters are independent of each other. But facts remain - if AAX result so-so, it will pull AA down. You saw it. So, can play around with result, especially a company that lives in a glass house because of last year account manipulation accusation.

When people are at the end of panic selling , buy.

Buy ... Buy ... Buy

See AirAsia is climbing back. Those who sold at 2.83 regrets. I think they were forced to sell at 2.83 , no one in the right mind would sell at this price. Today is the time to make some fast gain.

Today drop is really about the contra player force selling and no-one can help them. Volume is so thin and yet the gap is big for AirAsia.

Buy

Today is T+4 ladies and gentleman..... Force selling starts at 10.00 am. Now to catch.. some.

It seems 0.41 is the resistance point and the launching pad towards 80cents

I heard some China Guy wanted to buy part of Air Asia and make China AirAsia dream comes true

if it fall below 0.41 , time for me to repurchase

Calvin Tan : Lord give you mouth not to talk bad , for you the sin wont be forgiven as you sin to human and this sin only human can forgive, repent and seek forgiveness from all of us here...Do I sound like you , Calvin ?

i think not much though and would be well absorbed if any.

maybe to those contra players who i pity still holding but dont have cash to hold.

Today is T+3. Tomorrow force sell. Many already sold.

Dont catch falling knife when it is still falling. Once it stops catch it. It already stops. When it stops , others are still fearing it because the look of the knife is sharp. Then Buy when others are still fearing but you know the probability of bleed is reduced because the knife now lay still on the floor.

Rice is necessity. Sugar is necessity. Chocolate ? No, not necessitiy. PMCorp price will move south.

Asian eat rice. Chicken rice and not chocolate. Never eat tango . Why want Tango , if you have Hershey and Cadbury. That is why Warren Buffet own Hershey and Cadbury and not Tango. If Warren Buffet in Malaysia, he will buy rice and sugar company . And forgets about chocolates. Chocolates i for lazy spoilt rich kids whose father had too much money to waste on.

forex is already there ...around 4.0 to 4.08 per USD. Oil is also stabilizing at USD 45. The government lacks creativity. Growth slowing down this year. Increasing tax percentage is not a good option to pay debt. It reduces demand, and in turn will reduce tax. What we need is feel good factors and feelgood factors will not kick in if the crooks of 1MDB are still at large and uncaught.

once the wrongdoers of 1MDB are caught and jailed, forex will become better.

Hahaha.... same writing style with Calvin Tan ? Not ?

Beware and becareful - Prophet of Doom is entering PMCorp and MUI. Those who seek not forgiveness, will be unforgiven and doomed.

Evade property counters like MUI and luxury food counter like PMCorp. The next cycle of economic crisis will be bad on properties prices. Now, 2016. Next cycle of economic crisis - 2017 and 2018. After US Election .