There have been numerous crash predictions over the last five years. As a result, many investors have closed their ears, and who can blame them?

The market has ignored the warnings and continued to go up.

One thing about crashes: They can’t be predicted (but it won’t stop people from trying). However, it is possible to recognize a dangerous market, which is what we have now.

7 signs we’re near a market top. Such red flags are everywhere:

1. Retail investors have been pouring money into stock mutual funds. The fear of missing out on the sixth year of a bull market has created something close to a buying panic. Although not as maniacal as we saw in 1999, the stock cheerleaders are back and rooting for their stocks and mutual funds to go higher — just like they always do before a crash or bear market.

2. The Investor’s Intelligence survey is concerning. The closely watched II survey shows a low proportion of bears (less than 20%), which some have pointed out is the lowest proportion since just before the 1987 crash.

3. Sentiment indicators are pessimistic. The VIX, the put-call ratio and other major sentiment indicators suggest that investors and traders are getting complacent. Apparently, market participants believe that the Fed, or their fund manager, will protect them in a worst-case scenario.

4. Fundamentals are being ignored. Obscenely high P/E ratios are passed over, along with soft economic readings (i.e. GDP and ISM). When the fundamentals are weaker than expected, the weather is blamed.

5. The stock market crash of 2008 has been forgotten. Investors forget, but the market never does. Those who do not heed the lessons of the past will once again learn a painful lesson.

6. The Nasdaq is soaring. The three-year chart of the Nasdaq COMP-0.37% has gone nearly parabolic, hitting a 14-year high of 4,351 on March 4. It’s the Go-Go years all over again. (And that late 1960s bull market ended with the 1973-74 bear market.)

7. Fear and greed are taking over. When the market reaches the tipping point (and we’re getting closer), investors and traders buy “ATM” (anything that moves). The fear of missing out causes a buying panic.

So folks, are you ready for the great bear markets? You have been warned! Hahahahahahahahha!!

Can the market go higher? Sure, although the higher it goes, the more dangerous it becomes. Often, during the latter stages of a bull market, the market separates itself from reality and appears to be on another planet.

So will the rally continue, folks? Hahahahahahahahaah!!

Investors may be digesting latest data from Japan. The Asian giant announced on early Monday that it logged a record deficit of 1.589 trillion yen ($15.4 billion) in January, against estimates of a 1.4 trillion yen deficit.

How? Hahahahahahahhahahah!!

Asian shares traded in negative territory on early Monday, after an uninspiring handover from Wall Street and weak Chinese export data at the weekend.

Focus is also likely to fall on Malaysia, where the search for a missing Malaysia Airlines flight entered its third day.

China's exports tumbled 18.1 percent while imports rose 10.1 percent from a year earlier, producing a trade deficit of $23 billion for the month of February, data released on Saturday showed.

In a letter, the FIA has sought the Prime Minister’s intervention to prevent the Directorate-General of Civil Aviation (DGCA) from issuing the Air Operators’ Permit (AOP) to AirAsia India ‘in a hurry’, as the grant of ‘No Objection Certificate’ (NOC) to the new venture was not in conformity with the policy.

Reiterating its stance, the FIA said the policy permitting foreign airlines to invest in airlines applied to operating airlines and not new entrants with new international partners. The Prime Minister has been requested to clarify the correct interpretation of the policy by which AirAsia India was allowed.

The FIA has drawn the attention of the Prime Minister to the issue of interpretation of the meaning of substantial ownership and effective control, prior to grant of AOP. Heheheheheheheheh!!

Folks, continuing its opposition to AirAsia India, domestic airline lobby Federation of Indian Airlines (FIA) has urged Prime Minister Manmohan Singh to stall the entry of the low-cost airline in India.

How?

RSS Trade detail for 07/03/2014: Airasia

RSS Value: Rm2,497,250
RSS Volume: 993,300

Careful now folks! Hahahahahahahahah!!

Beside what I have mentioned in my previous postings, here are additional on why AA on the downtrend starting tomorrow, folks?

1. The latest incident will damage Malaysia aviation industry as people will put their traveling on hold unless necessary.

2. Regulated short-sell on AA was done at 2.51 with almost 1 million of shares transacted last friday

3. Federation of Indian Aviation asks Indian PM to deny operating permit to AirAsia

4. The Delhi High Court sought the response of the central government and AirAsia India on a plea by the Federation of Indian Airlines which is opposing the go-ahead given to the airline to begin its flight operations in the country.

5. Yields have collapsed to a near 2008-2009 global financial crisis levels.

Careful now, folks!

Folks, our thoughts & prayers for the passengers & crew on board MH370.

For those still holding AA, brace yourself for the rough journey ahead. Will year low 2.18 hold. Hmmmmmmm...!!! Careful now, folks!

Flight MH370 bound to Beijing goes missing. Read more here: http://www.thestar.com.my

Malaysia Airlines (MAS) confirms that flight MH370 has lost contact with Subang Air Traffic Control at 2.40am, Saturday.

Read more here: http://www.thestar.com.my

An Indian court asked for responses from both the federal government and AirAsia India on an action by the Federation of Indian Airlines (FIA), which is opposing the government's go-ahead for the Malaysian budget carrier to begin operations in Ind.

The Delhi High Court also asked India's Foreign Investment Promotions Board to respond and stood down the matter to March 12 to be held together with a similar action from Indian politician Subramanian Swamy, which had challenged clearances given to the new airline by the Indian authorities.

Definitely still not a smooth journey for AA India, folks! What next..... another months of bad weather ahead? The delay in rollout of AirAsia India has caused a start-up shared loss of –RM3.1m in the 4QE. Hmmmmmmmmm..!!

FY13 average yield has dropped significantly by 17.6% yoy in order to sustain the average load factor for the year at 80.2%.

AirAsia group will defer 7 A320s in 2014 and 12 A320s in 2015 CEO (current engine option) into NEO (new engine option), which will be delivered over the period of 2016-2026 (slower short term capacity expansion plan), in view of the short term problem at each of the country it operates.

The group after the deferral will take 28 A320s in 2014. AA expects to use the US$120m proceeds from the sales of 6 existing aircraft to fund the delivery of 28 new A320s.

Out of the 28 A320s in 2014, 14 for Malaysia (replacing the existing 6 and swap 4 to India); 8 for Thailand and 6 for India. Actual net additional aircraft in Malaysia is only 4 A320s in 2014.

AA takes a cautious view on Indonesia by not adding new aircraft in 2014, given the uncertainty of general election and the economy (coupled with IDR depreciation). Furthermore, the planned IPO exercise has been scrapped.

We concur with management’s view on overall yield to remain depress in 2014, given the continued stiff competitive pressure exerted by MAS.

Risks: World crisis (ie. war, terrorism and epidemic outbreak), delay in KLIA2 completion, prolong surge in jet fuel price and high speed train infrastructure between Singapore and Pulau Pinang.

Source: Hong Leong IB

Folks ask yourselves: Are you buying a disaster on its way down thinking you are averaging your costs? Time will tell! Hahahahahahahahahahah!!

Competition to continue

Weak quarter – below expectations. Deferring fleet deliveries and selling older planes. Proposing a 10% share buyback program. Maintain HOLD with a lower RM2.20

Source: Hwang DBS

Dividend policy 20% of Net Operating Profit which will cost AA a hugh sum of 141m (705m x 20%). Can AA afford to pay knowing 2014 & 2015 will be the difficult year?

Hmmmmmmmm...???

AirAsia’s core earnings declined by 16% to RM709.5m. The main drags on earnings are mainly due to higher depreciation costs and financing cost which saw an increase of 16% and 23%, respectively.

YoY, revenue decreased by 4% from RM1408.4m to RM1354.0m despite a 14% growth in passengers primarily due to yield pressure as a result of the irrational price war with MAS. Its core earnings also saw a sharp decrease of 44% from RM380.5m to RM213.2m.

We are keeping our OP call on AirAsia given its resilient earnings amid tough operating environments (i.e. price war, fuel price risk, currency risk) and also its dividend policy that payouts 20% of its net operating profit.

Source: Kenanga

Yes folks, a dividend policy of 20% its net operating profit (705m x 20% = 141m for dividend)? Remember folks, AA would likely not undertake any share buy-back this year, given its preference to conserve cash. What to say giving 141m for dividend?

But worse thing, failing to do will definitely caused another round of massive selling by local & foreign funds. How? Heheheheheheheheh!!

(1). Earnings below expectations.
AirAsia’s 4Q13 core profit was RM177m (-23%yoy, +14%qoq). The FY13 core profit of RM595m missed expectations as it was below by -21% and -18% of our and consensus full year forecasts.

(2). Improving load factor and ancillary yields.
The lower earnings in 4Q13 was attributable to intense competition which dragged down the pax yield (-21.7%yoy, -6.6%qoq) as well as the lower overseas associates’ contribution.

(3). Lower overseas associate contributions.
a. The prolonged demonstration in Bangkok dragged down the TAA’s shared profits by -46% YoY.
b. The 26% decline in the Indonesian rupiah in FY13 had a profound impact on the IAA’s bottomline.
c. The delay in rollout of AirAsia India also caused a start-up shared loss of –RM3.1m.

(4). Fleet delivery plan.
AirAsia plans to adopt a more conservative stance in fleet expansion in FY14. MAA will only see a net growth of four aircrafts as compared to eight new planes in FY13. TAA will see a net fleet growth of eight planes from the current 35. IAA will not receive any new plane due to uncertainty arising from the presidential election.

(5). Strategy plan in FY14. For the topline management, AirAsia will launch the “Emirates Project” to enhance its fly-thru services together with the long haul feeder by AAX. The high-flyer option and ticket sale distribution via GDS will be used to further enhance the revenue base. In addition, AirAsia will push for more cost-saving initiatives including reducing manpower by introducing more self-service kiosk, merger operational functions with AAX, renegotiation of existing engineering contracts and other flight operation savings.

Source: MIDF

Dare to buy at the current price, folks? Remember folks, AA management concedes that it would likely not undertake any share buy-back this year, given its preference to conserve cash.

But why? Knowing 2014 & 2015 will be a diificult year? Careful now!! Hahahahahahahahhahah!!

(1). Malaysia – stiff competition.
Competition continued to drive yield lower with revenue/ASK (RASK) declined 13% yoy.

(2). Thailand – demand remained strong.
However, earnings dropped by 8.5% yoy to THB1.9bn due to decline in yield.

(3). Indonesia – affected by devaluation of rupiah.
The sharp increase in cost of 27% yoy on the back of weakened IDR/USD has eaten into profit margin, resulting in a loss of IDR429.3bn in 4Q13 vs a profit of IDR124bn same period last year.

(4). All in, 4Q13 adjusted core PBT and net profit contracted 72% and 73% yoy respectively and this has reversed FY13 earnings growth to the negative territory.

The contributing factors include:
a) yield pressure for Malaysian and Thailand.
b) unfavourable currency movement (ringgit and rupiah) against the
dollar, causing sharp increase in fuel costs.

Source: TA

So folks, will 2014 be a difficult year Airasia? The truth hurts, folks! Heheheheheheheheh!!

Folks, AA going to disposed 6 existing aircraf only after the engine overhaul and maintenance done. Engine overhaul and maintenance will cost million of ringgit, folks!

Remember folks, AA was established with the dream of making flying possible for everyone in order for AA to generate revenue & profit.

Now selling aircrafts to generate income? How? Hmmmmmm...???????

(1). Monetising its balance sheet through aircraft disposals.
- AirAsia is expected to receive USD20m for each aircraft disposed, on a net basis i.e. after engine overhaul and maintenance.

- halt fleet expansion plan at Philippines AirAsia and Indonesia AirAsia.

- Some analysts were quick to highlight the potential residual value risk as demand for second-hand aircrafts may be lacklustre given airlines’ preference for newer generation aircrafts and the more favourable financing terms for new aircrafts.

(2). Tight-lipped on its share buy-back programme
-management concedes that it would likely not undertake any share buy-back this year, given its preference to conserve cash.

- Management did not indicate the quantum of the final dividend for FY13 during the briefing.

(3). Valuation and recommendation
- going forward, we remain wary of investing in domestic airlines stocks given the industry-wide headwinds due to yield compression and adverse forex movements.

- There is also a real risk that AirAsia’s unit cost may increase if klia2 is delayed, as congestion will lead to longer turnaround time and higher fuel burn.

Source: Alliance

So folks, are you buying a disaster on its way down thinking you are averaging your costs? Time will tell! Careful now! Heheheheheheheheh!

1. The delay in KLIA2 completion does not result in incremental cost to AA, according to management. However, we think it is a constraint on AA’s capacity expansion. AA is slowing capacity growth, with deferred deliveries of seven A320s in FY14 and 12 in FY15

2. Listing plans for Indonesia AirAsia will likely be shelved.

3. Given competitive pressure, constraints to expand and a weaker MYR might offset a big part of the group’s unit cost reduction drive

Source: AMMB

2014 will be a difficuly year for AA group. So the big question: will AA be profitable in th Q1?

How? Hahahahahahahahahahaha!!

TP 1.86 BB
TP 2.20 HWANGDBS
TP 2.22 HLG
TP 2.40 CIMB
TP 2.43 ALLIANCE
TP 2.50 AMMB
TP 2.74 TA
TP 3.01 KENANGA
TP 3.47 MIDF

Take profit while you still can, folks! Hahahahahahahahahahahah!!

klia2 to open on May 2 without AirAsia?

AirAsia, when asked if it would be operating out of klia2 on May 2, 2014, said it has yet to receive any official notification from MAHB to operate out of the new terminal. The airline did not state if it was ready to move to klia2.

The airline also alluded to a Service Level Agreement that "includes indemnification on safety, timeliness of the project, and assurance of the safety of lives and our assets", which is not in place yet.

It went on to say that there are also other unresolved issues such as the check-in systems which it is still working through with MAHB.

MOT deputy Minister, who heads the klia2 task force said the question of notification should not arise as the government has made the announcement on the operational date of klia2, which other airlines have used as a basis to engage MAHB.

According to MOT, AirAsia was given the privilege to be located within the terminal building, but to date work on its office is yet to start.

An analyst report last week said that AirAsia management had guided that it is likely to move into klia2 in October or November this year.

Let me tell you the truth: The truth hurts! Hahahahahahahahhahahah!!

Folks, klia2 in Sepang, which is still targeting a May 2 opening, may once again miss the deadline as its major tenent, Airasia is unlikely to be able to complete renovation works at the main terminal building with less than 2 months to go!

AA has yet to make any preparations to move into the building - The Edge

How now as moving to Klia2 will incurr more costs for AA & AAX! Careful now! There you go, folks!!

Folks, the weak ringgit will still dent AA’s earnings as a weak ringgit is not good for airlines in Malaysia, as most of their costs are borne in US dollars, specifically for fuel & borrowings.

Remember folks, should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.

Hahahahahahahahahah!!

Airasia X now trading below 0.80 now? When will Airasia be below Rm2.00?

Remember folks, if a business does well, the stock eventually follows!

How now? Carefullllll......!! Hahahahahahahah!!

Folks, of course AA is cheap for a reason and will stay cheap for months to come as theirs slumping profit margins remain a problem for stock market.

The truth hurts, folks! Hahahahahahahah!!

Airline passengers would pay $5 billion more over the next decade for travel security under President Obama's budget released Tuesday, less than two months after security fees on tickets went up $12 billion over a decade.

The administration and Congress agreed in January to raise the Transportation Security Administration fee on each ticket from $2.50 per leg of a trip, capped at $5, to $5.60 each way. Portions of the travel industry criticized the increase because it was used to reduce the deficit rather than being spent directly on security.

Obama's latest budget proposal says that while Congress took steps to better match TSA fees with security costs, "the budget proposes to further reform these user fees to more closely reflect the costs of passenger screening."

Obama's spending blueprint also says TSA will reduce staffing costs $100 million over the next year by focusing on high-risk passengers through programs such as Pre-check, which allows some travelers to use speedier checkpoint lines at the airport. The administration plans to reinvest part of that savings in technology, according to the budget.

The TSA fee is part of $56 billion in new revenue or spending cuts that Obama proposed, in exchange for new proposals in his budget. The two-year budget deal that Obama struck with Congress in January set overall spending limits, but left details of this year's $3.9 trillion blueprint to be negotiated through legislation during the rest of the year.

What next.......Klia2? "Higher airport tax in klia2 could cut passenger loads, budget airlines’ profits" Read more here: http://www.themalaysianinsider.com/malaysia/article/higher-airport-tax-in-klia2-could-cut-passenger-loads-budget-airlines-profi

Possible folks! Hmmmmmmm..!!!

Folks, of course some of these stocks are cheap for a reason and will be even cheaper for years to come as theirs slumping profit margins remain a problem for stock markets.

Hope AA & AAX are not one of them! If a business does well, the stock eventually follows! How? Hahahahahahahahahah!!

Folks, late Sep 2012, Tune bought a total 68,030,000 shares at rm2.91 per share = Rm197,727,720.00 when the stock took the beating after the announcement of Malindo.

Now the big question: After the aggressive & massive selling by local & foreign investors why isn't Tune on the buying spree if year 2014 will be better than 2013?

All of this raises the question: What do the CEO know that you don’t? Careful now!! Hahahahahahahahahahah!!

Folks, the total number of aircraft in service as at 18-Feb-2014, North America has 8,544 aircraft, Asia Pacific 6,862 aircraft and Europe 6,744. The next biggest region, Latin America, has 2,078 aircraft. The whole of Africa has only 1,329 aircraft in service and the Middle East 1,247.

On the other hand there are currently 12,596 outstanding firm orders for commercial aircraft.

While North America is the leading region for the number in service, Asia Pacific is considerably more important when it comes to the number of orders. Asia Pacific’s 3,338 aircraft on order is greater than both North America’s and Europe’s orders by more than 1,000 aircraft. How folks?

Folks, the world’s aviation sector ended 2013 with another record backlog for aircraft orders, as the highest ever number of annual orders added to what was already a record backlog. The number of outstanding orders is equivalent to almost half of the fleet in service.

For a low margin industry, the challenge of financing all these orders remains significant. For decades, annual capital expenditure has almost always exceeded operating cash flow generated by the world’s airlines.

The industry has had to rely on ever more imaginative forms of external financing, demonstrating that, historically, this is a challenge to which they have risen.

AirAsia Group CEO Tony Fernandes, on Linkedin, stated (03-Feb-2014) the carrier will be "leaner, meaner" in 2014. Last year was a good wake-up call for AirAsia. We were put in the corner by irrational competition, especially in Malaysia.

So this year, AirAsia is already one of the leanest airlines in the world but we’re going to take it up a notch and cut costs by 7%.

A lot of the reduction will come from greater automation and efficiency from better staff productivity. We will only do routes that make sense".

On the revenue side, Mr Fernandes explained, "We will increase yield by increasing per passenger ancillary revenue by 25%.

It will be impossible to compete with us. We will destroy all this year."

Yes folks, we must find a cure for cancer, but it's easier said than doneeasier said than done! How? Hahahahahahahah!!

After QPR, Football Association of Singapore, etc & now Caterham Moto Racing Team Sponsorship.

Under the Agreement, AirAsia will sponsor a team with two (2) riders competing in the Moto2 World Championship (“Moto2”) and one (1) rider competing in the Moto3 World Championship (“Moto3”) for one (1) season of the MotoGP series in 2014 for the sum of €1,500,000.00 (“Sponsorship Fee”) commencing from today and expiring on 30 November 2014.

In 2014, AA suppose to focus on cost reduction! But how then? Hmmmmm..??

The CEO of AirAsia has indicated that the airlines’ main airline is going to start flights in Maldives instead of AirAsia X, which had suspended its services to Maldives, due to challenging business conditions.

AirAsia X, which started operation in Maldives at the close of 2013, had stopped flights from March 2014 because the support for the airline had diminished and they had started suffering business losses.

Is AA short of idea for new destination? Remember folks, beware of the little expenses; a small leak will sink a great ship. Hmmmmmmm.....!!

Would India abolish restrictions on domestic airlines to launch international services?

Under existing rules, Indian carriers wanting to fly on international routes need to have a fleet of at least 20 aircraft and must have operated for at least five years (known as the 5/20 rule).

Would it be the last policy change to be effected by the civil aviation ministry before elections later this week?

Remember folks, the move has already come under criticism with the Federation of Indian Airlines (FIA) writing to civil aviation secretary Ashok Lavasa in January:

"Considering that all airlines in the process of fulfilling their obligation have incurred substantial losses through domestic operations, it would be unacceptable for the government to now consider revising the policy by the removal of the 5/20 rule in order to benefit the international airlines' joint ventures, which are under consideration and approval."

The truth hurts, folks! Careful now! Hahahahahahahah!!

Federation of Indian Airlines has moved the high court after the Director General of Civil Aviation on February 21 granted a permit to AirAsia to commence its scheduled air operations.

In its petition, the federation has also sought that AirAsia be "restrained from commencing business as an airline operator in India".

The beginning of the end for AAI? Only time will tell, folks! Hahahahahah!!

After the High court hearing, Swamy later told the media outside the court that he intends to file a contempt plea against the Central Government on this issue of alleged "false representations".

During the proceedings, Swamy alleged before the bench that licence have been obtained by making false representations to this court.

He alleged that the USD 30 million joint venture, between Tata Sons and Malaysia based AirAsia Berhad, had to show before the FIPB that the airline would be essentially controlled by Indians, but the same has not been done.

In its plea, FIA has sought quashing of the approval granted by the Ministry of Civil Aviation to the airline.

Now the big question: will AAI able to obtain the operating permit soon? Investors have short memories!! Hahahahahahahahahah!!

Folks, the Delhi High Court today sought responses of the Centre and AirAsia India on a plea by Federation of Indian Airlines (FIA) opposing the go-ahead given to the airline to begin its flight operations in country.

A bench of Acting Chief Justice B D Ahmed and Justice S Mridul also issued notice to the Foreign Investment Promotion Board (FIPB) and renotified the matter for March 12 to be heard with BJP leader Subramanian Swamy's plea challenging clearances granted to the airline.

The bench also asked the Centre, AirAsia India and other respondents to file their counter reply to an additional affidavit filed by Swamy, who has alleged that either the responses filed by the authorities before the court are "false and misleading" or the Director General Civil Aviation (DGCA) "has acted illegally and in utter disregard of law".

So the big question: Will AA give up on AAI? Then truth hurts, folks!! Hahahahahahahahahah!!

An Indian airline body challenges go-ahead granted to joint venture between Tata Sons and AirAsia India.

Good or bad news for AA folks? Careful now? Hahahahahahaha!!

Will the rally continue to bring AA above Rm3.00? Well folks, to stay above Rm2.50 is already a humongous hurdle!

How then folks? Heheheheheh!!

The International Air Transport Association (IATA) announced global passenger traffic results for January.

Asia-Pacific carriers’ traffic rose 8.0% compared to the year-ago period; however, this result is partly distorted by the timing of the Lunar New Year in January, a month earlier than in 2013.

Comparisons with December traffic suggest a continuation of the slower growth seen toward the end of 2013, likely in line with signs of a slowdown in the Chinese economy.

In the business world, the rearview mirror is always clearer than the windshield. Careful now, folks!!

How? Hahahahahahahahahahah!!

The most immediate option for Tony F is to delay new flight plans or cut back on new orders—such as the A330s on order for the Thai AirAsia X launch.

The first A330 delivered in January is currently unused as a scheduled aircraft, having been primarily used for certification purposes only.

Thai AAX ready to launch but without committing to a date. Thai AAX will be looking at other destinations across Asia-Pacific, but won’t be opening up any new routes in Thailand.

First AA deffer aircraft deliveries in 2014 & 2015. AAX next? Careful now! Hahahahahahahah!!

The launch of Thai AirAsia X has been delayed to the latter half of the year due to civil unrest in Thailand affecting the tourism and aviation industries.

Financial and political pressures could also jeopardize delivery of the carrier’s seven extra Airbus A330s due for delivery later this year.

Last week, AirAsia reported a fourth-quarter profit drop of 19%, mainly from fuel and staffing costs. Concurrently, AirAsia X posted a pre-tax loss of RM212.98 million in FY2013, compared to RM38.01 million profit from Air Asia X in 2012.

The pressure is now on AirAsia founder Tony Fernandes to return to what has been a consistently upward trajectory

Time to get out of AA, folks? Hmmmmmmmmmm...careful now...the truth hurts!!! Heheheheheheheheheheeh!!

Folks, a rare bond default warning from a Chinese firm unsettled markets in Shanghai on Wednesday.

In a statement posted on the Shenzen stock exchange's website, Shanghai Chaori Solar Energy Science and Technology said it will be unable to meet interest payments on bonds due this Friday.

2014 will be the year China seriously cleans up mounting local government and corporate debts which have been rapidly accumulated since late 2008.

The chance of some bond and trust loan defaults will rise significantly in 2014, especially as the more confident government sees the need for some defaults to develop a more disciplined financial market.

Good or bad news for the EMs? How then? Hahahahahahahaha!

Folks, though AA made no reference in the latest business plan, the company has been already cutting flights to Borneo and other loss-making routes.

Now AA might start looking for a new partner with which to re-enter the Japanese market. This decision, however, may depend on how well he can raise AirAsia's earnings.

Risk comes from not knowing what you're doing. Careful now! Hahahahahahah!!

Remember folks, the investor of today does not profit from yesterday's growth or news! So will the rally for AA last?

Investors have short memories!! Hahahahahahahaha!!

Folks, AirAsia increased its sales by 5% on the year to about 5.2 billion ringgit for fiscal 2013. But this rise did not translate into profits. Its net profit sank 54% on the year to 364.07 million ringgit during the same period.

Yes folks, down 54% for year 2013!! So with continuous aggressive & massive competitions on dosmetic & international sector from other airlines translate to better 2014 earnings for AA?

Yes again folks, the truth hurts!! Hahahahahahahahah!!

Folks, Tony Fernandes said he will pay more attention to cost-cutting efforts to improve profitability. AA aims to to lower overall costs by 7.5% on the year for 2014.

But according to Fernandes, AirAsia has so far managed to reduce costs by 2.5% for the two months through February.

The rise of rivals in Southeast Asia has created strong competition. Lion Air of Indonesia and Cebu Pacific Air of the Philippines have both recently expanded their service areas, including the opening of routes already offered by AirAsia.

Careful now as 2014 & 2015 will be difficult years for AA! How? Hahahahahahah!!

AirAsia is slowing capacity growth, with deferred deliveries of seven A320s in FY14 and 12 in FY15.

The listing plans for Indonesia AirAsia would likely be shelved as management prefers instead to consolidate all its units under one holding company.

However, this may take time as it requires approval and lobbying of individual governments that Air Asia operates in.

Careful now, folks! Wakakakakakakak!!