Everyone thinks AA will back to pre covid price of 1.80...that is impossible for an airline face losses for almost 8 quarters to billions. Can you just write off the losses and ignore the fact AA in huge lost?
Absolutely Can! According to someone with No_Sight
----------
cheeseburger Everyone thinks AA will back to pre covid price of 1.80...that is impossible for an airline face losses for almost 8 quarters to billions. Can you just write off the losses and ignore the fact AA in huge lost? 14/10/2021 10:27 PM
Cheeseburger..we need to be aware of pump and dump operator..who talked up Air Asia shares but actually it is a loss making company that is in icu burning estimated RM50million per month. All research investment anaylyst said not to buy more than 90 sens and not impress with the unicorn status of start up venture air asia digital that has yet to earn any significant cash contribution to reduce the cash burn rate of RM50million per month
In june 17 2020, reported in the Edge by Kang Siew Li. Back then the analyst estimate Air asia cash burn rate was RM120million a month..now i estimated they have reduce the cash burn rate to RM50million a month
Nomura Global Markets Research aviation analyst Ahmad Maghfur Usman estimates that AirAsia’s cash burn is now at RM120 million a month (excluding fuel hedging losses and after payment deferrals), given that it has trimmed its fixed burn costs by 60%.
Now that Air Asia has secured a govt guarantee to obtain a loan of RM500 million loan from banker. Still, the new debt would not be enough. Combining the reported syndicated loan amount of RM1 billion, the RM500 million government loan and the rumoured private placement of RM334 million would raise less than RM1.9 billion for AirAsia, which pales in comparison to the proceeds raised by foreign airlines. In March, Singapore Airlines Ltd undertook a massive cash call to raise S$15 billion (RM45.9 billion), not only to deal with the impact of Covid-19 on its business but also to position it for growth beyond the pandemic.
When you have 7 analyst from different background and from different research house making the same SELL recommendation for sure they are bullshitters right ..hahaha...even layman like me know...look at Evergrande..share price tank because heavy debt and cannot pay bond interest. Many examples of company go bust due to cannot service debt
Nomura Global Anaylse is the only way Air Asia is going to survive their huge debt RM2.5 billion is to get a massive cash injection bail out. My view, Air Asia to be bought over by Khazanah and merge with Malaysia Airlines
UK regional airline Flybe entered administration — a practice similar to declaring bankruptcy — on Thursday, March 5. Although Flybe was already on the brink of collapse — despite a major investment by a Virgin Atlantic-led consortium the previous summer — the coronavirus crisis pushed it over the edge. Flybe operated about 40% of domestic flights in the UK.
Virgin Australia entered "voluntary administration," the Australian equivalent of Chapter 11 bankruptcy, on Tuesday, April 21.
Although the Brisbane-based airline had suspended most of its operations and furloughed most of its employees, it was still losing money operating about 65 daily flights.
The airline said it would continue operating during the restructuring process. It entered administration after a request for aid from the Australian government was denied.
Avianca, one of Latin America's largest and oldest airlines,filed for Chapter 11 bankruptcy in May. Like other airlines, Avianca's woes were caused by coronavirus-related drops in travel demand.
The airline's flight operations have been grounded since mid-March due to the pandemic, and the company's income has fallen over 80%. In filing for bankruptcy, the airline said it hopes to continue operations as COVID-19 restrictions are gradually lifted.
AirAsia still got at least 2 cycles of 52week high, 1. is when international travel open possible end of year , 2. is when covid drop to 0 or its so low government will stop daily announcement like other countries,
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....
xxxx
1,397 posts
Posted by xxxx > 2021-10-14 19:23 | Report Abuse
I ain't happy. It is overpriced.