Don't be so proud. What makes you think you read more details than others? Write on the company. Don't talk down other investors. If you borrowed USD to buy a house in Malaysia, how is that a "non-cashflow" item now? What about in future? Yes, it generates cashflow in Asian currencies, but that'll have to used to pay off loans in USD.
Calvin, you dislike every counter which intends to grow? Hope you can find out who you really are. Maybe when you are rich enough, you can takeover companies and sell it off bit by bit, as you love asset so much.
I ask you again, what is TEXCHEM's profit margin? Why did the company lose money in the last two years? What makes you think it won't lose money again?
I already highlighted many times Airasia has changed a lot after the plane crash. It will be the biggest mistake of your life to miss you a 800 bagger like Airasia.
1. Airasia has the lowest cost structure, globally.
2. Market gives 0 value on its ventures. Now Airasia is unlocking its by selling all those investment and refocus. Unlocking Tens of Billion of value.
3. Increasing operating margins through innovations and cost cutting.
4. After record profit FY2016, FY2017 profit will double, to 4 billion. 1-2 billion gain on disposal, unlocking value exercises has been miscalculated by all analysts.
5. Listing in Hong Kong will re-rate the stock upward.
6. Airasia will continue to grow for the next 20 years at least.
7. All financials look great, ROI, margins, ROE, cash flow also better than TEXCHEM.
Calvin, can't you see the beauty of Airasia? Continuous disruptive innovation will not only lead your competitors, also kill your competitions on the way.
As felicity pointed out in his previous article, most disruptive companies does not make money but command high earning multiples. Fortunate and unfortunate, the market here doesn't believe in innovation (yet), once Airasia is listed in Hong Kong/New York, the perception will change.
Our analysts here never seen anything like Airasia. They simply misjudge by giving negative value to invesments made for the future by Airasia.
@Calvin, did the boss of Texchem tell you how many sushi king outlets they are going to open? in malaysia or overseas? did the boss mention what growth plan he has for the food division and other division? did he tell you his plan to unlock the prime asset value? Do you mind sharing?
@Calvin, on the off balance sheet debt you mentioned, you need to see that from business value. The current backlog for plane order and delivery is 8-10 years. The backlog is value accretive to AAC business (leasing arm) - internally used by AA or lease to external/assoc. So it is a big mistake to assume all orders are for internal use (you do not see the business model for aircraft leasing). And in fact this "balloon debt" lift up AAC valuation. With AA disposal of leasing business, this ballon debts will reduce significantly. AA basically unlock the the leasing business and the value of these backlogs.
myr up, oil down, more positive news from analyst reports published, my guess is going to be good next week. Let's see
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calvintaneng
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Posted by calvintaneng > 2017-02-24 10:58 | Report Abuse
Now, nobody talks of its high debt as it is getting smaller.
Ohoh felicity!
You got it wrong there!
In off balance sheet
AirPlane Purchase Commitments have ballooned from Rm76 BILLIONS For Year 2015 TO RM88 BILLIONS for year 2016
A JUMP OF RM12 BILLIONS!!
THIS DEBT HAS INCREASED BY ANOTHER RM12 BILLIONS
Go check and double check again carefully.
Not sure?
Go ask ex Bank Governor Zeti