that is why it is cheap, look at airasia, how many times more expensive? but nevertheless look behind who are the owners. if the owners are strong then risk are low.
MAS is trading at its resistance of 0.315. It is important to monitor the price volume action near this 0.315 level to determine whether a breakout will take place. BB is squeezing....
MAS is squeezing at the upper half of the BB for the past 4 trading days. Volume over the past 6 trading days is very low compared to the past 7th to 31st trading days . The closing prices over the past 10 trading days is higher than all time low of 29.5 cents and this was accompanied by low trading volumes indicating that selling pressure had been exhausted at 31.5 cents level
My Take: MAS will break out on the UPSIDE from 31.5 cents level
nowadays price up and down not about company's profit or loss, it is u and me, supply and demand that make it up or down. when good profit announce it is good time to sell, so share price down, make us confuse, same truth when company make loss. lesson learns for myself, always look at big pictures.
to buy we normally use technical approach or fundamental approach, how about panic approach, it take a lot of patience and strong discipline. there is only one planting and one harvesting season per year. too many times in and out, only brokers laughing.
RAISING CAPITAL: Listing of subsidiary will be national carrier’s first
Malaysia Airlines (MAS) may sell Firefly Sdn Bhd shares to the public to raise capital in order to help expand the sixyear- old subsidiary’s business.
If the initial public offering (IPO) does take place, it will be the first time the national carrier lists a subsidiary.
Over the years, many of the carrier’s plans have outlined the need to list its profitable units to help raise capital and also to better manage it.
The closest it got thus far was the sale of MAS Catering Sdn Bhd to Brahim’s Holdings Bhd and LSG Asia GmbH in 2003.
Brahim’s and LSG paid RM175 million for MAS Catering, besides taking over the company’s accumulated losses. MAS had incurred losses of about RM200 million from the catering business.
The carrier has more than 30 subsidiaries and associate companies. Its profitable units include Malaysia Airlines Cargo Sdn Bhd and Firefly.
Firefly bled red ink in 2011 due to its shortlived jet operations but returned to the black last year. Prior to 2010, Firefly had been making around RM10 million to RM12 million in net profit.
The company, which is targeting a revenue of RM350 million this year, currently contributes less than five per cent to MAS’ bottom line.
Analysts said MAS’ plan to list its subsidiaries is more of a balance sheet management exercise.
“If the market views MAS’ move to unlock the value of its subsidiaries as positive, the new listed entity will rally,” said Mercury Securities head of research Edmund Tham.
Firefly chief executive officer Ignatius Ong said the listing is in the scope of the company.
“One of the requirements for listing is to strengthen the company’s position. This is where the new ATR 72-600 aircraft comes in.
We are on an expansion mode,” he said. Last December, MAS ordered 36 ATR 72-600 turboprop planes from French-Italian aircraft maker ATR for RM3 billion. Of those, 20 are for Firefly and the rest for MASwings.
Firefly received its first ATR 72-600 earlier this week. The rest will be delivered in batches over the next three years.
“We are increasing frequencies in existing markets and identifying new routes,” Ong said on the sidelines of the launch of Firefly’s inaugural ATR 72-600 commercial flight to Johor’s Senai International Airport from Subang Skypark yesterday.
Firefly also operates 12 ATR 72-500s and flies to more than 25 destinations within Malaysia, southern Thailand, Singapore and Sumatra.
It will ding dong ding dong till qtrly report announced. If better result, I guess will move upwards right before announcement. Pray hard ya. Good luck to all.
They can spend few millions to push up the price. But what is the point of doing so without strong fundamental improvement. This is not a good counter for short and mid term traders.
The writing is on the wall. "We have other more important things to attend to. You want to cut your losses, sell to me at 0.31. You want to support me buy from me at 0.315."
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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....
shamopi
79 posts
Posted by shamopi > 2013-07-10 22:17 | Report Abuse
Junglestock, ur an EY auditor?