Asian stocks fell, with the regional benchmark index poised to snap a two day gain, after U.S. Secretary of State John Kerry said the president will hold Syria’s government accountable for using chemical weapons.

Careful now as jet fuel price will shoot up drastically soon!

Other risk factors such as the U.S. hurricane season pressuring oil supplies that could keep oil prices well-bid.

This hurricane season in the U.S. that's about to enter a peak. So when you put that altogether (military intervention in Syria), you have a recipe that could see a spike in the oil price just around the corner.

Brent crude oil prices have risen roughly 15 percent from lows hit in April. A further rise could exacerbate Asia's economic woes at a time when emerging markets in the region are taking a hit from worries about an unwinding in U.S. monetary stimulus.

So how now as airlines' earnings could be hit should underlying crude prices go higher!

Folks, is a spike in oil prices around the corner?

As oil markets start to anticipate the prospect of U.S. military intervention in Syria, just how high prices will climb could be anyone's guess!

Remember folks, airlines' earnings could be hit should underlying crude prices hold at current levels or go higher!

AK 1487 26/08/2013 11:25 PM SIEM REAP-KUALA LUMPUR CANCELLED
D7 0171 26/08/2013 10:30 PM JEDDAH-KUALA LUMPUR CANCELLED
AK 5133 26/08/2013 09:00 PM K. KINABALU-KUALA LUMPUR CANCELLED
AK 5229 26/08/2013 08:25 PM KUCHING-KUALA LUMPUR CANCELLED
QZ 8162 26/08/2013 04:15 PM JAKARTA-KUALA LUMPUR CANCELLED
AK 1826 26/08/2013 07:00 AM SINGAPORE-KUALA LUMPUR CANCELLED

AK 1825 26/08/2013 10:40 PM KUALA LUMPUR-SINGAPORE CANCELLED
AK 5134 26/08/2013 09:25 PM KUALA LUMPUR-K. KINABALU CANCELLED
AK 5220 26/08/2013 09:00 PM KUALA LUMPUR-KUCHING CANCELLED
AK 1454 26/08/2013 07:40 PM KUALA LUMPUR-HO CHI MINH CANCELLED
AK 1486 26/08/2013 06:35 PM KUALA LUMPUR-SIEM REAP CANCELLED
QZ 8163 26/08/2013 04:40 PM KUALA LUMPUR-JAKARTA CANCELLED
AK 5228 26/08/2013 04:30 PM KUALA LUMPUR-KUCHING CANCELLED

For flight cancellation please view here: http://flight.klia.com.my/fids.aspx

Averaging down in a falling stock is like lending money to your brother-in-law.

Your wife insists, so you write a check. Months later he needs more money. You may lend him more, but you surely must feel sad about watching that money going out, knowing you'll never see it again.

Read more here: http://klse.i3investor.com/servlets/forum/800000864.jsp

Averaging down in a falling stock is like lending money to your brother-in-law.

Your wife insists, so you write a check. Months later he needs more money. You may lend him more, but you surely must feel sad about watching that money going out, knowing you'll never see it again.

In the stock market, you have to quickly admit when you're plain wrong. If you can't do that, investing could become an expensive hobby for you. In growth investing, throwing good money after bad is never a good strategy.

Still, you must have heard this idea a hundred times from a hundred different people: If you buy a stock and it goes down, buy more. As you buy it cheaper, your average cost declines.

When the stock finally turns around and rises, you have more shares at a lower price than would have been the case if you had just frozen up and held your original position.

So what's wrong with this approach? Everything.

First of all, you're buying a stock that's falling. Wouldn't you rather be buying a rising star (positive earnings & growth prospects)? Isn't that why you've been screening for that handful of potential winners?

Second, by averaging down, you'll end up with more shares of a loser than you had originally planned. Your portfolio could become dominated by bad stocks.

Perhaps worst of all, you'd be inviting disaster. And in the stock market, such invitations may well be answered.

The big assumption in averaging down is that the stock will, at some point, turn around. What if it doesn't? Your portfolio will be decimated, and you'll rue the day you ever started trading stocks.

To win in growth investing, add positions in stocks that are rising soon after their breakout. That's how a true leader acts. Averaging up in a rising stock gives you a chance to compound your gains.

Do some stocks never recover? Of course. Others may stay near their lows for years. Citigroup topped out at 57 about four years ago. It had been a market leader and as solid a Wall Street name as it gets.

You know what happened. The stock crashed to 97 cents in March 2009 and is now wallowing just shy of $5. Do you still have shares of Yahoo, another household name that peaked at 125.03 11 years ago? Yes, it was a fantastic winner in the past. But new bull markets usually feature new leaders.

In these and countless other examples, you'd do infinitely better to cut your loss to no worse than 8% from your buy price. If the stock turns around, you can get back in. If it doesn't, you'll have a far healthier portfolio and you'll still be able to sleep at night.

So folks?

AirAsia's pursuit of rapid growth in Southeast Asia could lead to further yield declines.

For detail news view here: http://centreforaviation.com/analysis/airasia-faces-challenges-throughout-southeast-asia-as-competition-continues-to-intensify-125261

1. Remember folks, AA's pursuit of rapid growth in Southeast Asia could lead to further yield declines.

2. The AA Group plans to add 16 aircraft in 2H13, including four in 3Q13 and 12 in 4Q13. Some of these aircraft are coming out of the fleet of AA Japan, which currently operates five aircraft and is winding down its operation over the next two months.

3. Of the 16 A320s being delivered in the 2H13, 15 will be allocated to Southeast Asian markets with AA India slated to take the remaining aircraft.

4. The rapid expansion across Southeast Asia will ensure AA maintains is leading position in the region’s LCC market as the overall market continues to grow at a high double digit clip. The AA brand currently accounts for about 35% of LCC capacity to/from and within Southeast Asia.

5. Market conditions in Southeast Asia remain favourable for further LCC growth as the region’s economies remain robust and middle class populations continue to rise rapidly.

6. But several markets could see over capacity as nearly every LCC in the region pursues rapid growth and new LCCs prepare to enter.

7. While AA is well positioned and has the cash to fight back, inevitably profits and yields will come under pressure as competition continues to intensify.

Cash and cash equivalents:
(2Q13) Rm1.639b
(1Q13) Rm2.156b

Hmmmmmmm......!!

AA Price Performamce:

1 month:
(23/08/13) Rm2.64 - Low
(06/08/13) Rm3.22 - High

6 months:
(23/08/13) Rm2.64 - Low
(05/06/13) Rm3.54 - High

One Year:
(21/12/12) Rm2.49 - Low
(29/08/12) Rm3.64 - High

A big question now, a new low in the making? Remember folks, massive volume traded on 22/08/13 (36,763,400) & 23/08/13 (26,186,000).

Force sell should set in soon. Will rm2.64 low stand? Your guess, folks!

1. Folks, AA Philippines has quickly discovered it is difficult to serve the domestic market from Clark. International services can potentially work with the right low fare stimulation.

2. But there are not many potential international markets to serve given the tensions with mainland China and the fact the two other key North Asia markets Philippines - South Korea and Philippines - Japan are currently not open to additional Philippine carriers.

3. Southeast Asia is open but AA already has affiliates in three other Southeast Asian countries, making the new Philippine operation unnecessary except in the Philippines - Singapore market.

4. But the Philippines - Singapore market is already served by several LCCs, making it tough for AA to carve out a profitable niche. In hindsight, establishing a Philippine affiliate was probably not the smartest move.

5. What do you think, folks?

1. Folks, AA faces even bigger challenges in the Philippines as it entered the market later. Cebu Pacific dominates the Philippine LCC market, accounting about 50% of total domestic capacity. Cebu Pacific also has a strong and rapidly growing international presence.

2. Philippines AA incurred a net loss of Rm24 million in 2Q13, representing only a very slight improvement compared to a net loss of Rm25 million in 2Q12. The carrier has struggled since launching services in Mar 2012 with a fleet of two A320s.

3. Well folks, Philippines AA is still currently only operating two A320s, an indication of its failure to gain traction in the competitive Philippine market.

1. Competition in Indonesia is fierce, particularly in the domestic market. AA over the last year has attempted to make a bigger push in the domestic market, recognising it needs to have a larger presence in Southeast Asia’s largest market to meet its group goal of being the leading LCC in ASEAN. The group says Indonesia AA captured 5% of the Indonesian domestic market in 2Q13, compared to only 2% in 2Q12.

2. But the domestic gap between AA and the Lion Air Group, which accounts for about 50% of Indonesia’s domestic market, is still huge. While Indonesia AA continues to expand domestically and aims to capture 7% of the market by the end of 2013, it will once again allocate a majority of its additional capacity in 2H13 to the international market as it adds five more aircraft. Capacity will be added in several existing international markets, including Australia, Malaysia, Singapore and Thailand.

3. Indonesia AA added two aircraft in 1H13 and operated 24 aircraft as of 30Jun13. The carrier is slated to add another five aircraft in 2H13, two of which have already been delivered and deployed from its bases at Bali and Medan.

4. Indonesia AAa has traditionally focused more on Indonesia’s international market, where it accounts for a leading 18% share of capacity. AA Group accounts for 26% share of total capacity in Indonesia’s international market.

5. The focus on further growing its international operation in 2H13 is logical as Indonesia’s international market still remains relatively under-served and Indonesia AA is able to leverage AA’s strong international brand.

6. But eventually Indonesia AA will need to establish a more meaningful domestic presence. While it has expanded from a very small domestic base it will be challenging to secure more than a 10% slice of the market given the domination of Lion and the more rapid growth of Garuda LCC subsidiary Citilink.

So how?

Folks, Indonesia AA’s operating margin slipped from 8% in 2Q12 to 6% in 2Q13. The carrier has traditionally had the lowest margins and load factors among AA’s original three carriers.

With the Malaysian and Thai short-haul operations reporting improved operating margins in 2Q13, the gap between Indonesia AA and its sister carriers has again increased.

While the improvement in profitability is encouraging the reduction in operating profit margin and higher unit costs is discouraging, particularly as the carrier tries to move forward with its delayed IPO.

Folks, AA Group currently owns a 45% stake in Thai AA, which in 2012 became the first AA carrier to have a separate listing.

AA X, which will own Thai AA X in partnership with Thai AA’s largest shareholder, completed its IPO in Jul 2013.

Indonesia AA, which is now 49% owned by the AA Group, is now preparing for its own IPO.

The IPO, originally planned in 2013, is now slated for 4Q13 although a further postponement until 2014 is possible.

But why, folks?

Folks the big question now is, will the 6 months support level at Rm2.64 stand?

Remember folks, massive volume traded on 22/08/13 (36,763,400) & 23/08/13 (26,186,000).

Force sell within this week? Well folks, only time will tell! Hehehehehe!!

1. Folks, the Malaysian domestic market, which Malindo has only served thus far (it will launch its first international route on 28?8/13), has driven the yield declines at AA’s Malaysian short-haul carrier.

2. Lion’s entry in Thailand with Thai Lion will likely have a similar impact initially domestically and eventually also in the international market. This impact will be compounded if Thai VietJet follows through and launches domestic services.

3. But Nok has just launched international services and Thai Lion and Thai VietJet are both expected to pursue international expansion after initially launching in the domestic market.

4. Thai Lion is expected to serve within the first few months the Thailand - Malaysia and Thailand - Indonesia markets, both of which are big markets for AA.

5. Lion currently does not serve Thailand from Indonesia while Malindo has no plans to serve Thailand as part of the first phase of its international expansion and is instead leaving the Malaysia - Thailand market to Thai Lion.

6. LCCs currently account for about 20% of international capacity in Thailand. The AA Group accounts for over half of this capacity and has about a 12% share of total international capacity in Thailand.

Hmmmmm...!!

1. Thailand’s market currently has just two local LCCs, Thai AA and Nok Air. Orient Thai previously competed as a third LCC domestically but has essentially withdrawn from this market, initially shutting its LCC brand One Two Go in 2008.

2. LCC competition Thailand’s domestic market is poised to increase significantly as Lion and Vietnam’s VietJet are preparing to launch new joint venture carriers in Thailand in late 2013 and early 2014 respectively. This will likely put further pressure on Thai AA's yields.

3. Folks, Thailand’s domestic market, which is currently smaller than the domestic markets in Malaysia and the Philippines, is unlikely to support four LCCs over the long term. Careful now!

1. Thai AA turned an operating profit of USD16 million in 2Q13, an increase of 124% compared to the USD7 million operating profit in 2Q12. The carrier’s net profit also doubled from USD8 million in 2Q12 to USD16 million in 2Q13.

2. Revenues were up 21% to USD168 million as passenger traffic increased by 25% to 2.4 million. Thai AA’s seat load factor improved by 3ppt from 79% to 82%, outperforming its Malaysian sister carrier which typically has had the highest loads in the group. RPKs were up 25% while ASKs were up 18%. Thai AA ended the quarter with an operating profit margin of 10% compared to 5% in 2Q2013. Unlike the group’s other affiliates, Thai AA has been consistently profitable in recent years although its operating margin has never approached the margin seen in Malaysia.

3. But passenger unit revenues were down 3% y to y in 2Q13 and average fares dropped 4% to USD58.82. These were not as steep as the 8% unit revenue and 10% average fare drops at the group’s Malaysian short-haul operation but are alarming as Thailand has not seen the same kind of dramatic changes to the competitive landscape that Malaysia has witnessed this year. Careful folks!

1. AA’s short-haul operation in Thailand also reported a drop in yields for 2Q2013. Like its Malaysian sister carrier, Thai AA was still able to improve operating profits. But with new competition around the corner as two new LCCs plan to launch in Thailand, market conditions will only become tougher.

2. Indonesia AA reported both a yield and operating profit improvement for 2Q2013 but it remains by far the least profitable of the group’s original three affiliates. Competition in Indonesia is intense, particularly in the domestic market where AA is trying to establish a meaningful presence.

3. Meanwhile the group’s newest surviving affiliate, Philippines AA, has struggled almost as much as the new failed affiliate, AA Japan. AA is banking on its fortunes in the Philippines changing after new partner Zest Air adopts the AA brand, but the group still faces an uphill battle against market leader Cebu Pacific.

4. AA group decided to dissolve its joint venture in Japan with ANA in Jun-2013. AA is now preparing to establish a new joint venture in India, which is expected to launch services in 4Q2013 and become the group’s fifth affiliate and only carrier outside Southeast Asia.

There you go, folks!

1. AA’s remarkable track record of success over its first 12 years has come at a price more competition as others look to duplicate the group’s formula. While AA still reaps the benefits of first mover advantage in several of its markets and continues to outperform nearly all of its peers, competition is intensifying.

2. The Malaysian market, the group’s original and by far its most profitable market, has been shaken up this year as rival low-cost carrier group Lion has launched Malindo Air and as rival MAS has exited a restructuring phase by pursuing aggressive expansion aimed primarily at fighting off Malindo.

3. While AA’s Malaysian short-haul operation continues to report industry-leading operating profit margins of about 20%, its yields have dropped in recent months and the carrier’s profitability could eventually be impacted.

AA Price Performamce:

1 month:
(23/08/13) Rm2.64 - Low
(06/08/13) Rm3.22 - High

6 months:
(23/08/13) Rm2.64 - Low
(05/06/13) Rm3.54 - High

One Year:
(21/12/12) Rm2.49 - Low
(29/08/12) Rm3.64 - High

Jet fuel margins touched five-month high in August. Remember folks, airlines' earnings could be hit should underlying crude prices hold at current levels or go higher.

All the best to those with AA shares. May the sky be clear tomorrow for your smooth journey ahead eventhogh the weather forecast otherwise!

Good nite, folks!

The ringgit closed slightly lower against the US dollar today. The ringgit, which opened higher this morning, fell against the US dollar at 3.3070/3100 from 3.2990/3020 last Friday.

Another round of massive selling by foreign funds coming? Well, only time will tell!

Don't stand on thin ice, folks!

MALAYSIA SELLDOWN:

• It was the heaviest foreign selldown of Malaysian equity in a week since the 2008 Financial Crisis. Foreign funds sold Malaysian equity in the open market last week amounted to -RM2.9b. That was the fourth consecutive week of deficit on Bursa. During the four weeks, a total amount of -RM4.96b of foreign money had left Malaysian equity.

• Foreign funds were net sellers every single day last week. Indeed, foreign funds had been selling in the open market in 19 out of the last 20 trading days. Foreign selling peaked last Tuesday, when an
amount of -RM1.0b was offl oaded, the highest in a single day since the 2009 Crisis. That was the day prior to the release of the FOMC minutes in the U.S.

• As of last Friday, the cumulative net foreign purchase of Malaysian equity in 2013 had dropped significantly +USD3.44bb, based on transactions in the open market. Since Jan 2011, the cumulative purchase amounted to +USD8.51b. Thus, even after the outflow last week, the overhang of foreign liquidity in the local market remained very high.

• Foreign participation in the market surged to its highest level in 2 months. Last week, foreign participation rate (average daily gross purchase and sale) was RM1.44b. The intensity of foreign selling had therefore increased in a rather sudden manner. The unwinding exercise was more gradual in previous weeks.

• Local investors were heavy supporters of the market. Even retail investors mopped up +RM248m, the highest this year, reflecting confidence in the market. Retail participation surged to RM1.57b
last week, the second time it exceed the RM1.5b mark this year.

• Local institutions bought +RM2.65b net last week in a heavy support operation. Participation rate was the highest this year at RM2.67b.

Source:MIDF

Remember folks, 51.92% of AA shares were still held by foreigners. Careful now!

1. Foreign equity investors were clearly not in the mood to hang around Asia, and were rushing for the exit door.

2. In aggregate, foreigners sold equity in the seven markets (Korea, Taiwan,Thailand, Malaysia, Indonesia, Philippines and India).

3. The net sale amount of -USD2.97m was the fourth highest in a week this year. The only market spared the brunt of a selldown was Korea.

4. Malaysia recorded a net outfl ow of -USD881.3, the highest among markets in Asia last week.

5. Thailand reported a net outfl ow of -USD781.8m, the highest in a week this year.

6. There was also a net outfl ow of -USD534.3m from Indonesia, the second worst in 2013.

Hmmmmm.....!!

1. Equities in south east Asia are over-valued despite the ongoing emerging market rout and investors should get out while they still can, a senior portfolio manager from Macquarie told CNBC on Monday.

2. "What you're faced with in South East Asia is a very illiquid market, so we've been saying 'Don't hold onto these stocks for too long' because you don't want to be the last to get out of these markets," Sam Le Cornu from Macquarie.

3. Emerging markets and currencies that once benefitted from central bank quantitative easing (QE) programs as investors sought higher yielding assets are now suffering heavy losses.

4. Southeast Asian indexes have been hard hit, particularly Indonesia's Jakarta Composite, which has fallen 18 percent over the last three months.

5. Le Cornu, who is a senior portfolio manager of Asia-listed equities, said that stocks in the Philippines, Thailand, Indonesia and Malaysia were overvalued as they were either trading "way above their ten year (price-to-earnings) averages" or close to them.

6. The current P/E ratio on the Jakarta stock exchange is 12.55, while for the Bursa Malaysia the ratio is at 15.65.

7. Meanwhile, the Philippine stock exchange trades at 18.17 times current earnings and Thailand's SET index trades at 13.17. Though the P/E ratios have decreased in recent months, they are not much lower than the pre sell off levels.

So how now? Another round of selling by foreign funds followed by the local funds to come? Hmmmm...careful folks!

AirAsia offering basic fare of RM10, RM17 onwards for one-way domestic and international flights!

Read more here: http://www.thestar.com.my/News/Nation/2013/08/26/AirAsia-RM10-RM17-Fare.aspx

Well folks, a rock bottem sale is good for consumer as very damn cheap airfare. Will definately buy some to help AA! Hehehehehehehehe!!

Wonder why AA offering rock bottom cheap sale with a ridiculous low or maybe no yeilds!

To fill up the load as plenty of seat still available?
One month (sept)left to beef up the revenue for 3QE13?
Hmmmmmm....your guess folks?

Remember folks, forward loads in Malaysia for the remaining months of the 3Q13 are lower than in the prior year with base fares slightly lower than the prior year.

Could this be the reason? Time will tell!

WELLINGTON MANAGEMENT COMPANY:
Disposed 19/08/2013 1,758,800 (Before 2QE13 announcement)
Disposed 20/08/2013 5,782,890 (Before 2QE13 announcement)
Disposed 21/08/2013 1,231,000 (Before 2QE13 announcement)
Disposed 22/08/2013 3,357,700 ( After 2QE13 announcement)

EMPLOYEES PROVIDENT FUND:
Acquired 19/08/2013 2,830,400 (Sleeping)
Acquired 20/08/2013 4,965,000 (Sleeping)
Disposed 20/08/2013 1,333,700
Acquired 21/08/2013 3,053,600 (Sleeping)
Disposed 21/08/2013 25,700

There goes you money, folks. Look like someone is sleeping on the job as compared to the foreign fund!

Let wait and see what EPF is doing on the 22/8/13 till todate!

Careful now folks!

Back then after the announcement of Malindo, AA took a beating and the owner aggresively bought a total of 68,030,000 shares from 25/09/12 till 30/11/12 at an average price of rm2.91 which cost them a total Rm197.728m.

Later, before the 2QE13 announcement, the owner disposed 2,267,000 at Rm3.180 on 7/8/13.

And now after the 2QE13 announcement, AA share took a beating again and the owner so far has only acquired 1,000,000 shares at rm2.796 on 22/08/13.

Folks, another aggresive buying from the owners will reflect to the market that the 2H13 will be very encouraging while otherwise is failing to do so!

Don't you think so, folks?

The International Air Transport Association (IATA) has warned the global airline industry will struggle to attract the $4-5trn needed over the next 20 years after a study revealed investors in 2004-2011 would have earned $17bn more annually if they had instead put their money into bonds and equities of similar risk.

So how?

Pity to some buying at high price and stuck with it. Will it going to be a long painful waiting game for them or will they profit from it?

Hmmmmmmmmmmm..anyone?

Folks, have the dust settle? Another round of selling by foreign funds? Has EPF awaken from their deep sleep? Will Tune Air buy more?

Well folks, only time will tell! Heheheheheheheh!!

Brent crude extended gains above $111 a barrel on Monday to a near five-month high as rising tensions over a suspected chemical weapons attack in Syria added to concerns of increased unrest in the Middle East that could disrupt supply.

Oil prices also gained alongside equities after a steep drop in U.S. new home sales on Friday tempered expectations the Federal Reserve will soon reduce stimulus.

"The oil market is heading to an upside due to geopolitical risks in the Middle East and positive equity markets," said Tetsu Emori, a commodities fund manager at Astmax Investment in Tokyo.

Thailand's online ticket sales face slump. Consumer spending on travel is in danger of being impacted by the Thai recession, dampening the online air-ticketing business early next year.

Online air-ticketing sales in the rest of this year should not be hit much after key economic indicators were released, as trips have been planned with air tickets already booked.

But, we can see signs of a slowdown in online air-ticket sales in the last two months of the year

The Thai economy has been in the spotlight for technically slipping into a recession after GDP in the second quarter contracted for the second month in a row.

According to the Bank of Thailand's reports, GDP in the second quarter shrank by 0.3 per cent and in the first quarter by 1.7 per cent on quarter.

Hmmmmm....2H13!!

1. Folks, Tan Sri Tony Fernandes’ hopes of creating a powerful Asean Asian airline may take longer than expected as his AirAsia Asean office in Jakarta, Indonesia is believed to be being cleared out, with most Malaysian employees in charge of Asean operations moving back home.

2. The current Asean Secretary-General doesn’t support the idea and it sends the wrong message that Asean is low-cost. Instead, it should comprise the national carriers from several Asean countries.

3. AirAsia Asean, was suggested in June last year. So where to put the excessive planes order now including those returned by AA Japan? Hmmmm...!!

1. Folks, buying spree by the owners when the share took the beating after the announcement of Malindo!

2. Below shares acquired as per announcement:
25/09/12: 2,000,000 at rm2.870
26/09/12: 8,400,000 at rm2.840
27/09/12: 13,550,000 at rm2.920
03/10/12: 3,550,000 at rm3.010
05/10/12: 2,500,000 at rm3.030
16/10/12: 1,000,000 at rm3.050
18/10/12: 2,800,000 at rm3.126
24/10/12: 2,200,000 at rm3.040
06/11/12: 2,400,000 at rm2.974
08/11/12: 1,100,000 at rm2.945
09/11/12: 500,000 at rm 2.944
19/11/12: 3,950,000 at rm2.884
20/11/12: 4,150,000 at rm2.856
21/11/12: 3,700,000 at rm2.850
23/11/12: 6,000,000 at rm2.850
26/11/12: 2,360,000 at rm2.839
27/11/12: 3,180,000 at rm2.845
29/11/12: 1,690,000 at rm2.842
30/11/12: 3,000,000 at rm2.842

3. Before the 2QE13 announcement, owner disposal as per announcement:
07/08/13: 2,267,000 at Rm3.180

4. After the 2QE13 announcement, share took a beating again and owner acquired:
22/08/13: 1,000.000 at rm2.796

5. So the big question now folks, would the owners buy again aggressively this time around? If so meaning the 2H13 will be good or otherwise if owners are not doing so!

So how?

Folks, for the 3Q13 AA may have to contend with costlier jet fuel as the US dollar strengthens against the ringgit.

More flight frequency meaning budget airline may have to pay more for fuel in ringgit terms.

A percent (%) appreciation of USD vis a vis ringgit will reduce AA earnings by approximately 8% to 13.7% for FY2013 to FY2015.

The impact of a weakening Australian dollar versus the ringgit is also a bad news to AA.

Passenger yields in ringgit terms will be affected if AUD continues to weaken going forward.

This will adversely impact as the Australia market is one of the profitable segment for AA group.

Invest with care, folks!

AA Price Performamce:

1 month:
(23/8/13) Rm2.69 - Low
(25/7/13) Rm3.32 - High

6 months:
(26/02/13) Rm2.61 - Low
(05/06/13) Rm3.54 - High

One Year:
(21/12/12) Rm2.49 - Low
(29/08/12) Rm3.64 - High

Folks, going to test and make new low or high? Hmmmmmmmmmm...!!

AK 5133 25/08/2013 09:00 PM K. KINABALU-KUALA LUMPUR CANCELLED
AK 5229 25/08/2013 08:25 PM KUCHING-KUALA LUMPUR CANCELLED
QZ 8206 25/08/2013 07:35 PM JAKARTA-KUALA LUMPUR CANCELLED
AK 1441 25/08/2013 01:15 AM HANOI-KUALA LUMPUR CANCELLED
AK 5221 25/08/2013 01:00 AM KUCHING-KUALA LUMPUR CANCELLED
AK 1455 25/08/2013 12:00 AM HO CHI MINH-KUALA LUMPUR CANCELLED

AK 1825 25/08/2013 10:40 PM KUALA LUMPUR-SINGAPORE CANCELLED
AK 5134 25/08/2013 09:25 PM KUALA LUMPUR-K. KINABALU CANCELLED
AK 5220 25/08/2013 09:00 PM KUALA LUMPUR-KUCHING CANCELLED
QZ 8298 25/08/2013 08:45 PM KUALA LUMPUR-SURABAYA CANCELLED
QZ 8207 25/08/2013 08:20 PM KUALA LUMPUR-JAKARTA CANCELLED
AK 1454 25/08/2013 07:40 PM KUALA LUMPUR-HO CHI MINH CANCELLED
AK 1486 25/08/2013 06:35 PM KUALA LUMPUR-SIEM REAP CANCELLED
AK 5228 25/08/2013 04:30 PM KUALA LUMPUR-KUCHING CANCELLED

Can be viewed here: http://flight.klia.com.my/fids.aspx

The recent substantial fall in the AUD has not yet had time to make its effects felt at the consumer end, but the approximately 15% fall against the USD since Apr-2013 will be causing pain to airlines whose reliance on Australian outbound traffic is high.

Remember folks, the decline in the AUD could lead to a softening in outbound demand from Australia!

A dead cat bounce is a small, short-lived recovery in the price of a declining stock where a downtrends are interrupted by brief periods of recovery or small rallies where prices temporarily rise.

This can be a result of traders or investors closing out short positions or buying on the assumption that the security has reached a bottom.

Only time will tell!

Folks, a dead cat bounce?

In finance, a dead cat bounce is a small, brief recovery in the price of a declining stock.

So folks, a brief resurgence during or following a severe decline? Hmmmmm......Careful now!!

Folks, as reported the forward loads in Malaysia for the remaining months of the 3Q13 are lower than in the prior year with base fares slightly lower than the prior year.

Remember folks, base fares & forward loads for the ongoing 3Q13 remain low. Is that bad, good or ugly plus the high jet fuel price & weak currency?

Remember folks, we invest in a stock to make money n not to fall in love with it. AA is a good investment but not for now with the current predicaments AA is facing such as jet fuel price & forex!

Moreover, Malindo maybe just like an irritating mosquito for AA . But once it able to stink you the virus, it can be deadly. Malindo & Mas in particular are attacking AA sector by sector in & out of Malaysia. Whether they can achieve it or not that not for me to say. Only time will tell.

Most airlines are having problem with high jet fuel prices n weak local currencies and that include Lion, Malindo, Mas, Sia and others.

For those buying high, well it's going to be a painful waiting game to profit from it. Short term outlook seem not very encouraging with high staffs cost, jet fuel & weak currency.

Long term outlook depend on how AA navigate & sustain itself out of the turbulence time into a clearer sky.

Well folks, again only time will tell!

Folks, another factor for the poorer performance by was due to an 11% on-year decline in base yields during 2Q13, substantially worse than its previous forecast for a 2% decline for 2013 as a whole.

So how?

AirAsia Group’s yields contract as competition heightens in sector, high fuel & weakening ringgit!

Pity some cause buying high as recommended by others who are stuck with it!

AirAsia, Asia's largest low-cost carrier by fleet size, said Wednesday its net profit slumped 62 percent in the second quarter due to higher operating expenses and foreign-exchange losses on borrowings.

Operating expenses:
(2Q13) -Rm1.002b
(1Q13) -Rm1.045b

Forex gains/losses on borrowings:
(2Q13) -Rm122.718m
(1Q13) -Rm37.688m

Folks, formula for disaster for any airlines: jet fuel price, weak currency & high interest rate! What do you think of the jet fuel prices & forex for the ongoing 3Q13? Good, bad or ugly?

From there folks, judge for yourself the outcome for the next Q! All the best folks!

Staff costs for Air Asia rose 16% in the second quarter.

Staff costs:
(2Q13) -Rm161.395m
(2Q12) -Rm123.861m

So how tomorrow?

AK 1487 23/08/2013 11:25 PM SIEM REAP-KUALA LUMPUR CANCELLED
AK 5133 23/08/2013 09:00 PM K. KINABALU-KUALA LUMPUR CANCELLED
AK 5229 23/08/2013 08:25 PM KUCHING-KUALA LUMPUR CANCELLED
AK 8206 23/08/2013 07:35 PM JAKARTA-KUALA LUMPUR CANCELLED
AK 5105 23/08/2013 04:35 PM K. KINABALU-KUALA LUMPUR CANCELLED
AK 5227 23/08/2013 02:45 PM KUCHING-KUALA LUMPUR CANCELLED
AK 1826 23/08/2013 07:00 AM SINGAPORE-KUALA LUMPUR CANCELLED
AK 1441 23/08/2013 01:15 AM HANOI-KUALA LUMPUR CANCELLED
AK 5221 23/08/2013 01:00 AM KUCHING-KUALA LUMPUR CANCELLED
AK 1455 23/08/2013 12:00 AM HO CHI MINH-KUALA LUMPUR CANCELLED

AK 1825 23/08/2013 10:40 PM KUALA LUMPUR-SINGAPORE CANCELLED
AK 5134 23/08/2013 09:25 PM KUALA LUMPUR-K. KINABALU CANCELLED
AK 5220 23/08/2013 09:00 PM KUALA LUMPUR-KUCHING CANCELLED
QZ 8207 23/08/2013 08:20 PM KUALA LUMPUR-JAKARTA CANCELLED
AK 1454 23/08/2013 07:40 PM KUALA LUMPUR-HO CHI MINH CANCELLED
AK 1486 23/08/2013 06:35 PM KUALA LUMPUR-SIEM REAP CANCELLED
AK 5228 23/08/2013 04:30 PM KUALA LUMPUR-KUCHING CANCELLED
AK 5104 23/08/2013 11:05 AM KUALA LUMPUR-K. KINABALU CANCELLED
AK 5226 23/08/2013 10:50 AM KUALA LUMPUR-KUCHING CANCELLED

Folks, the information on flight cancellation can be view here: http://flight.klia.com.my/fids.aspx

The FAA is superseding airworthiness directive (AD) 2004-13-06 for certain Airbus Model A319 and A320 series airplanes.

AD 2004-13-06 required repetitive detailed inspections to detect cracks in the keel beam side panels, and repair if necessary. This new AD requires repetitive eddy current inspections for cracking in the keel beam side panels, and corrective actions if necessary.

This AD was prompted by reports of cracks on the side panels of the keel beams. We are issuing this AD to detect and correct fatigue cracks on the side panels of the keel beams, which could result in reduced structural integrity of the airplane.

This AD becomes effective September 24, 2013.

Folks, fyi AA Group has a fleet size of 129 aircraft A320. Care to share any news of this? Tq.