masterus nak buat kacau lol. Don't be sour grapes, there is still time to board. Don't memalukan orang Sarawak. The profit you can earn from Capitala will allow you to take any flight you want many times over. But biasa lah, most people will moan and groan rather than do anything to change their circumstances.

Is it better to convert RCUIDS/Capitala-LA into mother share now (which will give more AAX shares but fewer Capitala shares after the disposal), or do it later immediately AFTER the disposal (which will result in more Capitala shares but fewer AAX shares after the disposal)?

Can anyone who has a good idea on this please share your views? Appreciate it, thanks.

According to Kamarudin Meranun's insta post yesterday (Friday, 20 Jan), board approval was in principle obtained for Capital A's reg plan, while AAX's in principle approval was done last week. Now pending finalisation by consultants of the documents and final board approval, before the plan will be submitted to Bursa for approval, then implementation. I think the submission will come faster than expected. Also, I understand that more China to BKK and KUL routes will be restarted next month.

Technicals-wise it is above the 200 day MA, consolidating between a right range of RM0.68 to RM0.72, and the 50 day MA is close to exceeding the 200 day MA. Looks like it is all systems go once the 50 day MA gets above the 200 day MA.

Do your DD.

If that makes you feel good la lol.

Seriously, I don't understand people. Pay budget airline price but want to be treated like a full service passenger. Take a look at most if not all budget airlines around the globe - each and every one of them has similar issues and complaints from passengers. This is because of the cost structure and the way the business is operated. Paying Motel 66 prices but want to feel like staying at MO or the Shang. Budget airlines are not there to give you perfect customer service - they are there to move people from A to B at a cheap/reasonable price. Of course, good customer service is a plus, but then again ask yourself, are you paying for the customer service or the relatively cheap(er) ticket?

From an article in this weekend's The Edge - reg plan anticipated to be announced by end Jan or early Feb.

BTW - 3 white soldiers?

@Nhamir - no idea what are you even trying to say.

Yes, if approved. If not approved, then delist.

Although CapitalA requested for an extension to up to 7 July 2023 to submit its reg plan to Bursa (the extension which was granted), news reports in Nov/Dec 2022 actually indicated that they plan to announce the finalised plan in Jan 2023, followed by submission in Feb 2023. The requested extension is probably a good to have and allows the company some room to keep an eye on market conditions and tailor the plan accordingly. The reg plan will most likely also involve AAX, which also needs to submit a reg plan by 28 April 2023. Looks like both plans will be submitted at the same time.

Take note also, there will also be a 12 month period to implement the plan once approved by Bursa, so the reorg is not something that will happen immediately.

Just moved past its 200d MA. Long term prospects look good, but next 2 days there could be a slight retracement to the 200d MA. Plus keep watch for RM0.68 too. A bounce on the 200d MA and RM0.68 could portend a long rise.

Lol at the hit piece by MalaysiaNow. You don't know who its aligned to, do you?

Again, nonsense comments like these plague the entire i3investor forum. Everyone knows it is a PN17 company - now what we're looking out for is its prospects of regularising that position...

CapitalA's headwinds are well known, so let's look at just a couple of the tailwinds (relating to the aviation sector only and not even the entire of its business):

1. The world just doesn’t have enough planes as travel roars back (https://www.theedgemarkets.com/node/649749)

Put simply, airlines (particularly LCC) with the most planes will be the main beneficiary in the medium term, as they will be better positioned to organise their routes and deploy their aircraft in the most efficient manner. The game that the LCCs play is different from the premium segment as they rely on economies of scale. AirAsia still has quite a number of planes on the ground which it intends to bring back into service - approx. 140 / 205 back by end this year and the rest to come back around mid 2023. This augurs well for its operations; they are already at capacity as it is.

2. Chinese demand for travel jumps as Beijing opens the floodgates (https://www.theedgemarkets.com/node/649758)

Everyone would have read about China's planned reopening on 8 January 2023, with Thailand and Malaysia among the top 10 destinations that Chinese nationals want to travel to when it reopens. AirAsia already flies some flights from Malaysia and Thailand to China and Hong Kong. It is all a matter of ramping it up - see point 1 on the additional aircraft.

3. Strengthening MYR vs USD

The tightening of USD rates are coming to its final stretch, and the Fed isn't expected to tighten past 2023. In fact, many economists and industry players are already worried that they have overshot and are asking them to slow down or start easing. Regardless, a conservative estimate would see them hiking until at least mid-2023, or even end 2023 if one were to be ultra conservative. The Fed will then have to turn and start easing after that. Malaysia was beset with political strife from 2018 to 2022, which contributed (together with the pandemic, overheating of the US economy etc.) towards the slide in the Ringgit. With the unity government in place and assuming the US goes into a mini-recession in 2023/2024 (if not a major one), the Ringgit will gain, which will benefit AirAsia's operational cost.

Also, even if the recession somehow affects SEA, low cost services will be less impacted and could in fact gain over premium segments.

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Of course, the performance of CapitalA's share price also depends on how well the regularisation plan is carried out. Like what Buffet said, the stock market in the short run is a voting machine, but in the long run it is a weighing machine.

Technically, RM0.61 and the 50-day MA look to be the key levels in the near term and any decisive break or bounce at those levels (in fact its already occurred) will signify good movement. If the 200-day MA is also exceeded, it could kickstart a sustained ascent.

Its price now is what it is, but taking into account the various positive factors that are now slowly blowing in its favour and acting as a tailwind, its share price could just start moving upwards once the regularisation plan is put into motion.

Not financial advice, DYDD.