If hedge too much at current price, and then the price drop to below 40, you will have difficulty compete with other airlines that hedge less or didn't hedge. Hedge is like gamble, don't gamble too big.
AA is deal with commodity...like it or not hedging is one of the very important areas to them n to their bottom line...knowing how to sell ticket alone is not enough
Again aa oredi sold their tickets in advance..so they know their cost in these advance sales...they can lock in the fuel by hedging..the lower the cost they hedged the higher profit margin they hv
Aa is one of the least hedge airline...competitor far worst in fuel management then aa...aa can make profit even aT 100usd brent...the others already loss til parent cannot recognise...lol
Yeap...i think tony learned the hard lessons few years ago when crude pil plunged fm usd100+ to usd40+..washed out their futures contracts n loss like hell
@Bursa999: Thank you for pointing out on the startup valuation! Not sure about snapchat case though as i did not follow in this case! If you are referring to GDB case, a counter which i like, i can talk a bit on this!
One of the main thing i like about GDB is the 30% dividend policy! A small start up company committing to pay dividend right at the start! This is rare!
As an investor, i like the idea of getting paid via dividends while waiting for the company to grow! Most companies don't normally pay dividends at the start up phase, including AirAsia!
If you read GDB IPO prospectus, my view is that their growth strategy plan is just a very natural progression to grow in a construction business, nothing fancy or overstated there! Of course the jury is still out there if they can successful or not in their growth plan. In the high rise segment, which is their current experty, they are doing quite well. You can compare GDB with some of the other construction counters especially on their profit margin! Having a reputation of always completing projects ahead is not an easy task! It gave me a hint on their management strength! This i hope to follow up in later AGMs.
An interesting metric i noted on GDB is their high ROE! It will be great if they can maintain it! GDB is like AirAsia, a high ROE company!
The IPO price was 35sen! At current depressed market, the weak ones are being shakened out! Since IPO listing in April, some buyings by GDB directors offer some idea of what the insiders think on what it is worth! You can do some homework to check out!
GDB have enough orders in hand to last them at least in the next two years! As an investors i am willing to sit out with them but with a reasonable dividend, this is supported by their 30% dividend policy! They have paid 1.0sen interim in first half, indicating there is a 2nd dividend in second half!
GDB is an ACE counter, which i hope they can be in the main board in 3 to 5 years!
@shrobin im referring to technology startups ya so GDB might be a different case. Take Uber for example, its valuation is around USD 120bil. They make 10+ bil in revenue but have a net loss of around 5bil. Most tech startups have high valuation due to their crazy fundings but most are not profitable. So i wouldn't compare grab or technology startups to airasia as airasia is already established as a profitable company.
dont think airasia had much big impact lion air will have a bigger impact if there is any at all...airasia indo is in talks with garuda indo for potential collboration...positive news as this might increase its market share in the domestic markrt
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
MQ Trader 277 views | 1 d ago
0:17
New IPO: An enterprise IT solutions provider that provides implementation services, maintenance, support and professional services, Vetece Holdings Bhd aims to list on the Ace Market!
MQ Trader 471 views | 5 d ago
0:17
New IPO: A manufacturing and trading of biomass fuel products, particularly PKS and wood pellets company, Elridge Energy Holdings Bhd aims to list on the Ace Market!
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....
Wei Wong
671 posts
Posted by Wei Wong > 2018-12-22 09:34 | Report Abuse
I betting
Q4 up sikit makan dividen
Q1 up sikit makan dividen
But if oil lagi down or burst
Then different story !!
But oil up also different story !!
In the end is your holding power !!
Invest is if you have extra money can hold !!
Not borrow money or all in (very bad idea)