Buffet never invest in airline stocks. Too risky for him. What is the TP for MAS? Malindo is going to help or hurt MAS? Malindo is operating in March 2013 and so far, the news has depressed AA stocks significantly. What is the impact to MAS?
Any business in US that represented the country and will surely get help from the federal government during slow down or crisis,I'm believe Buffet will invest on it including airline (but temporary US not really have airline that represent the country,except air force one only.By the way, what is the impact to MAS? I'm really cannot figure out what kind of impact that can really hurt MAS.Everybody please state out all the factors that can hurt MAS financial and business performance.
Impact for 5* hotel no much drop because rich ppl/business man start 5* hotel. Budget class ppl start Tune Hotel or budget/lodge....each class have own market demand...If MAS really want to improve F/R, easy way cut 30% staff...too many staff walking around at MAS office...
For undying medal rewarded company,basically will not retrench people.This is the beautiful part of the portfolio,if you refer back to the last crisis,have you ever see UEM retrench his staff? Nope right,further more the company network is growing to international standard and create more working opportunities.
Two things MAS cannot control.....oil & currency. Nowadays some of their destintions ticket pricings are almost at par with AirAsia....which may mean margin squeeze....at best small profits.
Other airlines are cutting down on long haul flights, including SIA. MAS announced 'twice daily KL-London' flight with its new Airbus 380 (STARBIZ 25.11.12) . Only benefits PETRONAS.
Matikudasai... 10 become 1 (par value becomes 10 cents)..then to raise $3.1b means need to pay 90 cents (9 to 1)for the rights issue to let the blood flow again....technically in PN 17...this exercise will be long & "painfull".....
This proposal is quick sensitive.If all GLC screw up,I'm believe everybody will choose with party to lead the country already.Since,remain also screw up,better have some changes.Although,Asia market suppose to be not much related to Europe condition.If some big fish want to take advantages,let's screw the party together.Sell all your mutual fund not switching to bond,see how the big fish want to swim.
capital restructuring to reduce accumulated losses step 1: Par value reduction from existing 1.00 to 0.10 plus share premium account reduction, i believe the 'share price remain the same ' after (step 1) step 2: rights issue, borrowing money for us (this i don't like it), proposed rights issue details not as clear yet. if they succeed to raise further fund, it means share dilution, share price will be adjusted down after rights issue of course market sentiment is not going like it, or when share price falls badly they will do step 3: 0.10 share become 1.00 share by merging 10 shares (0.10) to 1 share (1.00). just what they did to Time Dotcom.
just be READY for any unforeseen circumstances as reporter by bursabulltrader KLCI: Worse Yet To Come. anywhere the whole restructuring exercise will take the next 2nd quarter 2013 to complete.
One doesn't need to be reminded of how bad MAS is as compared to AirAsia. But that's business-wise. For the trader, and when it concerns the "share price" and potential for profits, maybe MAS is safer.
Over the past week, most of the so-called quality counters have been going down and you can't be sure where the bottom is before there's some sort of rebound. But MAS seems very well supported at 1.00. It's ironic that those who had bought MAS at 1.03 or so, despite the small paper loss at the moment, are doing better than those who bought AirAsia, SK Petro or Perisai last week. Who's to say MAS won't up in the next few days?:-)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Karin Phua
419 posts
Posted by Karin Phua > 2012-11-22 02:58 | Report Abuse
Buffet never invest in airline stocks. Too risky for him.
What is the TP for MAS? Malindo is going to help or hurt MAS?
Malindo is operating in March 2013 and so far, the news has depressed AA stocks significantly. What is the impact to MAS?