AA is cheap for a reason and will be cheaper for weeks & months to come as theirs slumping profit margins remain a problem for stock market.

So the big question: are you ready? I'm folks! Hahahahahah!!!!!!

Folks, when your stock becomes unmanageable as it’s been lately, you have to manage expectations. Don’t chase the melting candle. Keep enough cash on hand so you’re not dumping stocks at fire-sale prices when pessimism is high.

Contain your emotions n prepare yourselves for the perfect storm to come, folks! Hahahahahhaahhah!!

Folks, no stock can resist gravity forever. What goes up must eventually come down. This is especially true for stock prices that become grotesquely distorted.

A melting candle in the making? Just wait n see! Hahahaha!!!

Malaysia's aviation traffic growth will moderate to between 9 to 10% in 2014, premised on the fact that the industry will add 33% less aircraft than 2013, says Maybank Investment Bank.

So the big question: will there be growth for Airasia after defferal of 7 aircraft in 2014 & 12 in 2015 and selling 6 existing aircraft?

The investor of today does not profit from yesterday's growth, folks! Hahahahahahah!!

Folks, the Malaysia industry passenger yields plunged 11.8% in 2013, which was close to the 14.6%-yield decline seen during the GFC of 2008-09.

More startling, the global airline industry experienced flat yield growth for the year. This is bizarre given that there was no economic crisis in Malaysia or the region, which implies that the demand was steady.

This suggests that the yield downfall was due to the Malaysian airline industry’s own doing, as the capacity deployed exceeded the real demand.

Folks, shares of stock lose value when company profits drop or investors believe that company profits will drop. How?

Has the music stops? Hahahahahahahahahah!!

This stock is on relentless tendency to regress towards its long-term mean......rm1.80, folks? Careful now......hahahahhahahahahahah!!

Folks, the prolonged demonstration in Bangkok dragged down the TAA’s 4Q13 shared profits by -46%yoy to RM18m. For 1H14, TAA’s bottomline will still be affected by the political unrest.

Meanwhile the 26% decline in the Indonesian rupiah in FY13 had a profound impact on the IAA’s bottomline. It spiked up the unit cost, CASK by +32% with IAA registered a net loss of IDR374b in the 4Q13.

The delay in rollout of AA India also caused a start-up shared loss of –RM3.1m in the 4Q13. Investors have short memories!! Hahahahahahahah!!

Folks, AA 4Q13 pax yield declined by -21.7%yoy to 13.6sen on the back of intense domestic competitions and itself aggressive fare promotion.

So folks, will the weak 4Q13 results carry over into 1Q14? Remember folks, if a business does well, the stock eventually follows!

How now? Hahahahahahahahah!!

Folks, turbulence in Indonesia. Indonesian operation would be profitable if there is no devaluation of the rupiah in 2013.

However, at current level of IDR11500/USD, the operating environment is expected to remain challenging as far as cost management is concerned.

The devaluation may also reduce air travel demand, thus AirAsia
has revamped its fleet plan by maintaining the current fleet size in 2014. So the big question: will there be growth in Indonesia for FY14? Hmmmm..!!

Folks, the management did not indicate the quantum of the final dividend for FY13 during the recent briefing.

But AA has a dividend policy of 20% its net operating profit & that come to a staggering rm131m for FY2013 dividend. Now the big question: will foreign & local funds be happy anything less than 20% as dividend?

Remember folks, AA is trying their best to conserve cash by selling 6 existing aircraft & reduce cost by deferring 19 aircraft deliveries! Even the share buy-back has not materialized! How now? Hahahahahahah!!

Folks, the management remains tight-lipped on its recently announced share buy-back programme, as it refrains from disclosing the price levels or valuation metrics at which it will consider undertaking buy-back of it share.

Nevertheless, management concedes that it would likely not undertake any share buy-back this year, given its preference to conserve cash.

Beware of the little expenses; a small leak will sink a great ship!! Hahahahahahahahaah!!

Folks, AA Management also plans to dispose aircrafts that are between 8-12 years of age, in order to monetise its balance sheet.

This decision is necessary following the closure of AA Japan and its decision to halt fleet expansion plan at Philippines AA and Indonesia AA due to challenging domestic operating environment. Meanwhile, the Malaysia domestic market could not accommodate more capacity given the current low yield environment.

But folks, 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. How then? Hmmmmmmm...!!

Folks, while AA fares well relative to local peers, earnings momentum has slowed significantly given competitive pressure, constraints to expand, high fuel price and a weaker MYR.

So will the weak 4Q13 results carry into 1Q14? Careful now. Hahahahahahah!!

Listing plans for Indonesia AirAsia will likely be shelved. How? Hehehehehehe!!

Profit after tax
FY14: Bad or Ugly?
FY13: 364.071m
FY12: 789.608m

Will the weak 4Q13 results carry over into 1Q14? Risk comes from not knowing what you're doing, folks!

Hahahahahahahahaha!!

ICAO called in to satisfy klia2 critics . The ICAO representatives were in Malaysia and started inspecting the terminal yesterday.

How now? Hmmmmmm...!!

CAR further adds that a Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline, which furnishes wrong information shall be liable for suspension/cancellation of operating permit.

Folks, aviation industry watchers feel that the worst affected is likely to be AirAsia India, the three-way joint venture between AirAsia, Tata Sons and the Bhatias.

“In the case of AirAsia India, the only one visible is Tony Fernandes, the global promoter of Air Asia, while the other two partners seem to be sleeping partners,” explained an industry expert justifying why the AirAsia India proposal is likely to be the most affected.

Terming the development as “significant”, a senior airline official felt that the decision will limit the freedom of all three foreign airlines, which have a stake in domestic airlines to station their own choice of foreigners here.

Folks, in a move that could make it more difficult for foreign entities to take over the management of a domestic airline in India, the Directorate-General of Civil Aviation (DGCA) has stipulated that an Indian carrier cannot enter into an agreement that gives the foreign airline, foreign investing institution or others on their behalf the right to control the management of the domestic operator.

Analysts feel that the revision to the Civil Aviation Requirement (CAR) could affect the fortunes of Etihad's buy-out of Jet Airways as also the two new start-up airlines, AirAsia India and Tata-Singapore Airlines.

All three are at various stages of getting permission from the Government. How?

Folks, investors become emotionally attached to a stock and overlook the company's shortcomings. Whatever the reason loving a stock, separate your emotions from the hard reality that it ay be time to sell.

Investors have short memories, folks! Wakakakakakakaka!!

AirAsia suffer fare deflation for at least the next two years as the current heavy competition could prevent it from passing through to passengers the 9% rise in landing charges from January 2014 onwards, the impending 9-11% rise in airport passenger service charges in February and the 6% GST from April 2015 onwards.

Are you buying a disaster on its way down thinking you are averaging your costs, folks? Careful now!Hhahahahahahahahahah!!

Among the disputes include commercial space for the airline group’s sales and services counters, merchandise booths locations as well as disagreements on certain rental charges........read more here: http://themalaysianreserve.com/main/news/corporate-malaysia/5734-airasia-yet-to-sign-klia2-tenancy-pact

How folks? Careful now! Hahahahahahahahah!!

Takeoff trouble: AirAsia"s India entry may delay further. The final AOP to AirAsia would depend on the outcome of the Delhi High Court order......»» http://www.moneycontrol.com/news/cnbc-tv18-comments/takeoff-trouble-airasias-india-entry-may-delay-further_1066246.html

How now, folks? Hahahahahahahah!!

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: Will Tune buy again to instill confident that the 1Q14 earnings will be better than 4Q13?

Beware folks as a small leak will sink a great ship! Hahahahahaha!!

A percent (%) appreciation of USD vis a vis ringgit will reduce AA earnings by approximately 8% to 13.7% folks!

Careful now as 1Q earnings will be below expectation! Hahahahahahah!!

AirAsia India’s flying licence stuck in red tape

Read here: http://www.themalaysianinsider.com/print/business/airasia-indias-flying-licence-stuck-in-red-tape-says-report

5 Excuses Why @Airasia & Tonyfernandes Refuse to Move to #KLIA2

Read more here: http://thekl-chronicle.blogspot.com/2014/04/5-excuses-why-airasia-tonyfernandes.html

How? Hahahahahahah!!

Folks, for the 1Q14 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.

So will the 1Q be bad or ugly? Careful now! Hahahahahhah!!

If a business does well, the stock eventually follows. Weak Q4 results carry over into Q1FY14!

Investors have short memories!! Hahahahahahah!!

Folks, stocks are tanking. Signs suggest that this pullback — or another one sometime soon — could get much more severe.

But why folks?

Three basic reasons:
•Stocks are still very expensive
•Corporate profit margins are still far away from record highs, and
•The Fed is now tightening

Remember folks, even after the recent drops, stocks appear to be very expensive. If the recent stock weakness turns out to be the start of a major pullback, don’t say you weren’t warned, folks!

Hahahahahahahah!!

AA, a bargain or value trap?

Folks, the aggressive expansion strategies of aviation peers has led to overcapacity within Southeast Asia. The rapid emergence of new LCCs will see four new entrants – Thai AirAsia X, Indonesia AirAsia X, NokScoot and Thai VietJet Air – joining the fray this year, the bane of overcapacity for the industry came from peers’ aggressive expansion strategies. These expansion strategies would add 88 new aircraft to bring fleet size to 573 by the end of 2014.

AA on the other hand has deferred 7 aircraft delivery in 2014 and 12 in 2015 in which after the deferral will take 28 A320s in 2014. AA expects to sell 6 existing aircraft to fund the deliveries.

So the big question: will there be growth in AA? Hmmmmmmm..!!

Folks, AirAsia India's plan to start operations has got stuck in red tape as the Indian Directorate General of Civil Aviation (DGCA) is yet to hand over flying licence to the airline even after it has completed the final route familiarisation tests in the country.

The truth folks, AA’s success can’t be emulated in any of the other markets where Tony has entered, this only prove that only Malaysia has given Tony the opportunities.

What next, folks? Hahahahahahahah!!

Wakakakakakakakakakakakakakakak!! Face the facts and move on. It is wise to direct your anger towards problems not people, to focus your energies on answers not excuses.

The truth hurts, right folks? Hahahahahahhahahah!!

Hahahahahahahah!! AA is cheap for a reason and will stay cheaper for months to come as theirs slumping profit margins remain a problem for stock market.

Careful now folks as AAc 1Q earnings is going to be bad!

Folks, no stock can resist gravity forever. What goes up must eventually come down. This is especially true for stock prices that become grotesquely distorted.

We have been and still are living in another dotcom bubble, and like the last one it is inevitable that it is going to burst.

So folks, is this the beginnings of massive stock market Ccrrection developing? Don’t delay folks, prepare today!

Folks, when the stock market becomes unmanageable as it’s been lately, you have to manage expectations.

Don’t chase the hottest sectors and stocks. Keep enough cash on hand so you’re not dumping stocks at fire-sale prices when pessimism is high.

Contain your emotions, folks. This market is in transition, and transitions are rarely as smooth as we would like So are you ready for the perfect storm to come? Hahahahahhaahhah!!

Folks, AA going to test and make new low or high? Will the rally continue to bring AA above Rm3.00?

Well folks, to stay above Rm2.30 is already a humongous hurdle! Below 2.00 soon? Careful now. Heheheheheh!!

Folks, it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

So the big question: is AA a wonderful company at a fair price? Well Mr. Market think otherwise.

Hahahahahahahhahaah!!

Folks, the Malaysia Competition Commission (MyCC) has found both Malaysian Airline System Bhd (MAS) and AirAsia Bhd guilty of anti-competition practices, in a final decision on the case which will see each party fined RM10 million.

What next? Hmmmmm..!!

Sincerely folks, why hang on to stock that is depreciating?

Hoping the shares would pick up again? But this is a very practical way to see your money melt down like a burning candle.

If a business does well, the stock eventually follows, folks!

Folks, to some face the facts and move on. It is wise to direct your anger towards problems not people, to focus your energies on answers not excuses.

So the wise things to do when investing is to use your head & not to follow your emotions!

As of 31/12/13, 49.30% of AA shares were held by foreigners. Another selldown in the EMs is bad for AA. Investors have short memories!! Hahahahaah!!

Folks, these risks will not wane anytime soon. Chinese growth is unlikely to accelerate and lift commodity prices; the Fed has increased the pace of its QE tapering; structural reforms are not likely until after elections; and incumbent governments have been similarly wary of the growth-depressing effects of tightening fiscal, monetary, and credit policies.

Indeed folks, the failure of many emerging-market governments to tighten macroeconomic policy sufficiently has led to another round of currency depreciation, which risks feeding into higher inflation and jeopardizing these countries ability to finance twin fiscal and external deficits.

Will these trigger another round of fear & selldown in the EMs? Investors have shorts memories!! Hahahahahahahahah!!

Moreover folks, the deep causes of last year’s turmoil in emerging markets have not disappeared.

For starters, the risk of a hard landing in China poses a serious threat to emerging Asia, commodity exporters around the world, and even advanced economies.

With the perfect storm ahead, will there be another selldown in the the EMs? Remember folks as of 31 Dec 2013, 49.30% of AA 2,781,034,580 ordinary shares were held by foreigners.

Then folks, there are the over-hyped BRICS countries, now falling back to reality. Three of them (Brazil, Russia, and South Africa) will grow more slowly than the United States this year, with real (inflation-adjusted) GDP rising at less than 2.5%, while the economies of the other two (China and India) are slowing sharply.

Indeed, Brazil, India, and South Africa are members of the Fragile Five, and demographic decline in China and Russia will undermine both countries’ potential growth.

So the big question: are you ready for the perfect storm to come, folks? I am! Heheheheheheheh!!

Folks, many emerging markets are in real trouble. The list includes India, Indonesia, Brazil, Turkey, and South Africa – dubbed the “Fragile Five,” because all have twin fiscal and current-account deficits, falling growth rates, above-target inflation, and political uncertainty from upcoming legislative and/or presidential elections this year.

But five other significant countries – Argentina, Venezuela, Ukraine, Hungary, and Thailand – are also vulnerable. Political and/or electoral risk can be found in all of them, loose fiscal policy in many of them, and rising external imbalances and sovereign risk in some of them.

So the big question: will there be another round of selldown in the EMs? Time will tell, folks! Hahahahahahah!!

Folks, this mini perfect storm in emerging markets was soon transmitted, via international investors’ risk aversion, to advanced economies’ stock markets.

But the immediate trigger for these pressures should not be confused with their deeper causes: Many emerging markets are in real trouble.

Fasten your seatbelts, folks! Risk comes from not knowing what you're doing! Hahahahahahahahaha!!

Folks, the financial turmoil that hit emerging-market economies last spring, following the US Federal Reserve’s “taper tantrum” over its QE policy, has returned with a vengeance.

This time, the trigger was a confluence of several events: a currency crisis in Argentina, where the authorities stopped intervening in the forex markets to prevent the loss of foreign reserves; weaker economic data from China; and persistent political uncertainty and unrest in Turkey, Ukraine, and Thailand.

So folks, with weak ringgit, high jet fuel cost and yield pressures, due to overwhelming capacity growth, would have a negative effect on the aviation sector. How now? Hahahahahahahah!!

Just look at Malindo Air. The fact that they can operate just within 6 months show how the government is supportive towards low cost industry in Malaysia. Malindo Air has flown more than 1 million passengers less than a year. Obviously it has something to do with policies made and carried out by the government.

What’s Your Problem, Tony? Read more here: http://matrodi.my/2014/04/09/whats-your-problem-tony/

In Japan, the joint-venture with All Nippon Airways has been terminated by partner.

In Indonesia, the purchase of Batavia Air has been scrutinised by regulators.

In India, the deal with Tata has been objected by competitors.

In Malaysia? They started as a monopoly low cost carrier with numerous assistance from the government.

Hmmmmmm.......!!

Of course any businessman would hate to contribute their success to the government’s policies and assistance. It will insult their ego.

But considering AA’s success can’t be emulated in any of the other markets where Tony has entered, this only prove that only Malaysia has given Tony the opportunities.

Why folks? Hahahahahahahah!!