Jet fuel price falling, QE tapering, commodity prices weaken, supply of oil icreasing, US will become oil exported by 2020. China economy slowing. All this are pointing to lower oil prices. This would be extremely positive to airline stocks world wide. Since 2006 oil prices hv shot up 56%, the foreseeable weak oil price would boost airlines operator profit margin significantly, as it make up of 37% of cost to full service carrier like MAS. The upside potential for MAS will be huge, let see if MAS can trade at higher price!
bro the oil price circa $100/barrel is here to stay. If it drops, like in 2008/9 would be due to market speculations not due to oil and gas economy. The price is as such due to cost of E%P and depletion of reserve albeit huge undiscovered and undeveloped reserves world wide. US is one of the major oil producer but for the country to become an exporter remain a question. Meanwhile Malaysia would increase O&G production in time to come...can Petronas subsidise MAS?
All commodities price are down, meaning slow business. Travellers are likely to reduce thus affecting airlines income. I forecast price of MAS to fall to 0.27sen as the average price after Rights Issues are at 0.26sen.
I find qqq68's comment very amusing especially. After telling people that he don't go with the herd instinct, his aggregate analysis on the news is nothing new. So mainstream ;. Just FYI, hedge on fuel price also makes up a very large component of their cost. Its just that derivatives gain/loss are not disclosed on the P&L directly until it is realized.
Please stop misleading beginners from "investing" in this stock
saw Mas Airline advertisement on Astro channel today. Somethings will be done to overturn the company into profit. Just wait and c. May b after they had accumulate enough shares, some announcement will be announced,perhaps the 60 years petrol subsidy.
MAS has made big progress in reducing the loss in 200 11 fr rm2.5 billion to rm 475 million in 2012. It is going to suffer loss in 2013 and will likely turn to profitable in late 2014. The management under Ahmad Jauhari has promised 3 years to turn around the company, now things are looking good for MAS if the biggest operating cost jet fuel is coming down now. THey hv done what needs to be done like improving efficiency, cutting unprofitable routes, increase load factor, invest in new airplanes. And most important is the successful rm3.1 bilion right issue implemented recently. They are now sitting on a comfortable footing to growth the company. Everyone is talking about the biggest cost for aviation industry, that is the fuel cost, this single biggest component of cost if it is not escalating, but look set to softening will make the airlines business improve their margin significantly. Let study today trading on MAS, It opened at 30.5 sen with 2.78 million shares done. It was holding very well at 30 sen till 3.00pm, despite the weak market sentiment. I believe the somebody are taking opportunity to sell down to 30 sen by forcing the contra player to sell to 29.5 sen. This selling is not heavy at all. From 4.40 to 4.44pm there were 2.35 million shares done on 30 sen, a clear sign some one is taking opportunity to buy back or accumulate at 30 sen just before the pre closing set in. at 4.50pm they try to close it at 29.5 sen so that their buying will not be obvious. Let me emphasize again at 29.5 sen, the cum price of MAS is only 55.5sen, at 30sen, its cum price is only 58sen. My dear friends, who want to sell MAS at 55sen and 58sen? If you hv bought MAS at rm1 before the right issue, and after taking up the right issue at 23 sen, 4x23=92 sen yr average cost per lot is (rm1 + rm0.92)/5 = 38.4 sen, if you sell at 30 sen , you suffer 28% loss. would you sell at current price? Well for those for hv not participated in the right issue, if you are buying now at 30 sen, you are buying at a 28% discount. Pls tell me worth it or not?
Thank You very much ashrizal1, appreciate very much for your posting. It is the right path MAS invested in the A380 jumbo to boost its image and enhanced its services. Airlines industry will be moving into upcycle. US economy is beginning to show strength and Federal Reserve will be increasing interest rate next year if things move according to the forecasts. The local market sees a lot of buying on MAS at 30 sen. Taking advantage of the opportunity offered by the big boy. According to the latest annual report of MAS 2012, there are 4 individual holding few million of MAS shares, beside Khazanah 70% and EPF < 5%, the rest are amanahraya, Sarawak state fund, Sabah chief minister, warisan harta Sabah sdn bhd and some foreign funds.
There is another problem of MAS, if price go too low, competitor will take over. Price at this moment is quite save. You need to keep for while, may be 6 months to one year time. The price will be up.
MAS got huge debts....I suppose a lot sukuk bonds issued to fund the purchase of new aircrafts, the recent rights is to defray ancilliary and miscellaneous expenses
MAS is pure waste of taxpayers money. Before no competition from AAsia it was bleeding profusely fiscally. Perhaps, it will start to make profits when dinosaurs rule the earth again.
Anybody got RM135 millions to mop the shares and push MAS higher? Think about it carefully, only the majority stakeholder ie Khazanah can only be interested to push MAS if the current management can promise Khazanah that the premium liner are able to deliver good cashflow following good financial results in future. Then only you can see accumulation of the share. Of course you will then see EPF following the buying frenzy. 25/06/2013 21:46
They are resuming it again?? Are there not any other alternatives? Looks like the 3 years program will indeed be "successful". LOL
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Posted by stevenlum81 > 2013-06-21 17:05 | Report Abuse
have been stuck between 0.3 ~ 0.315 for more than a weeks... Zzzzz...