when doing business, you hedge some of the risk...for AA thats oil price....but when oil price go down, AA can still cash in and buy spot....or buy forward at spot price + a certain points. Both side, will enable AA to maintain a certain % of their GP.
As for TF comment of "best year ever".....of course....in 2012 the year 2012 was the best ever and in 2013, it was better than 2012 so its the best year ever. TF do not have a crystal ball to see the future but every year, it seems to be better than the year before. Thats growth, either in terms of sales, passenger load, market share, etc. I can see it go up from y-o-y.
At current price of 1.85, i do think its a good buy for long term.
long time ago.. AA was beat down hard.. many time.. AA fall down..all look down on him.. AA got hit hard..hit by pounder over and over.. but.. AA never give up even once.. AA rise up and fight strong.. AA stand up his fight and beat all down than AA to rise up.. . this is AA... his never give up once..
Realised the Macai's of AA (Thomas Siew) has started coming out to protect their garbage holdings, seems that it would be a matter of time before BJ starts barking like a mongrel too 05/08/2019 10:03 AM
their IPO was 1.40 many years back....those who bought it back then would have fully recover their investment and making profits now. Their share is basically free already and every dividend are pure profits
I wondering what will happen if next year AA reduce dividend or even no dividend due to losses by those external environment issues. Airasia 3.0 is still too far to be truth..
The Sale and Leaseback deal is to merely "conceal" the loan.
If AirAsia Owns the plane, the loan has to be reflected inside it's balance sheet.
By Doing Sale and Leaseback, AirAsia "transferred" the debt to third party. Are they debt free? Not really, as their operations require planes, and they have to lease(loan installments) them back.
Has AirAsia been paying consistent dividends since IPO? yes and no. the Dividends only started increasing after TF took a private placement @ RM1.80 per share . What a coincidence.
Moving forward, the operations cost will increase, as the leaseback will cost more than servicing the loan. They have not been transparent in a lot of fees, just read The Edge Financial Daily today.
Nothing wrong with leaseback costing more than servicing the loan. If AA own those airplanes then they not only have to service the loan, they also incur depreciation & maintenance cost.
@risktransformer No need to rush to buy (can buy a bit) & no need to panic either. I always space out my averaging to include a reasonably lowest possible price.
+ 1 I'm in line with your line of thinking...beside I have already exceeded my target for AA this year.
With the current trade issues going on, this time you need to follow your head and not your heart.
Bursa might drop below 1600 point again, so plan your capital wisely...
As a matter of fact, AirAsia still will have to maintain all the planes at their own cost, when the lease expires, they have to return the aircraft to the lessor in it's original state without defects.
When there is any defect, they still have to repair all the aircraft at their own cost.
The higher lease cost already takes into account future depreciation cost. In other words, the lease that airasia is paying is inclusive of the Loan Installment+Depreciation Cost to the lessor.
IS AirAsia really free from Depreciation and Maintenance cost?
so, i hope you know what you are talking about.
risktransformer Nothing wrong with leaseback costing more than servicing the loan. If AA own those airplanes then they not only have to service the loan, they also incur depreciation & maintenance cost. 05/08/2019 12:27 PM
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....
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Posted by 7300 > 2019-08-05 09:25 | Report Abuse
same shoes door,...lao tzi bian lao shu