When a company goes back to the market to raise additional funds for expansion, the share price of the company's existing shares that are being traded is a good indicator of what they may expect to get for a secondary offering of shares.

Sell sell sell,2.90 I am waiting!!!

After pushing Armada to lowest price, punters pushed Rights issue fixing price lowest. Then punters will push rights issue listing price even lower for them to collect, killin all retail investors that cannot have cash to pick up rights issue.

Not so fast. Short sellers are our enemies. They will continue to push down until they are the only one to buy back at lowest price. 2.90 I am waiting!!!

You have 2000 Armada shares, you get 1000 bonus share, need to pay 1000 rights share. If you pay for rights share, you can get 4000 Armada shares at about 2.00 to 2.25. If you don't pay money for rights share, you get only 3000 shares. You lose to those who pay cash for rights share at 35% discount to mother shares. Due to this, punters are selling mother shares now to raise cash to buy rights issue with cash. Therefore punters selling at loss also don't care, because the rights issue is 35% cheaper, which will be 17.25% cheaper than 1:1 mother share. Punters will earn back from Rights shares. Those who cannot afford to buy rights shares will be holding Armada at 17.25% more expensive than punters who buy rights issue. They earn 17.25%, you lose 17.25%.

At 2.90 closing price, the theoretical ex price of armada share price will be at 2.00. This is quite reasonable price. Indeed, for it to drop to 2.90 is not easy. That is why I need to cheer up short sellers so that they get stronger to push the price down to 2.90 prior to fixing of rights share price.

Existing shareholders must buy rights issues. If they don't buy rights issue, the diluted EPS and dropping share price will put shareholders at lower shareholding and share values. RM4 and RM2.90 all will be forced to buy rights issue. Punters who use margins, and short sellers who sell mother shares, all have to sell, these fellas will push Armada share price lower and lower until either they buy rights, buy back mother shares, or margin cleared to buy rights issues.. Due to these factors, Armada 2.90 I am waiting!!!!

2.90 I am waiting, com on short sellers, I know you can do it!!!

Well, this is exactly what I mean your calculation assumption is wrong.

@AMoi, I have problems with short forms words. And RSS is not usually well known in Malaysian market. However, there is one foreign fund selling since mid May, it holds less than 3% of outstanding shares. He is the culprit for Armada crash.

@astana114, there are some mistakes in your calculations. Anyway thanks for sharing.

Yup, definitely they will push up the price after announcement to induce people buying into bonus and rights issue. From check of major shareholders shareholding, those funds holding less than 5% without needs to announce, one foreign fund has been selling since mid to end May. By now that fund manager's shareholding of Armada is minimal. Time to enter and buy. Even if 10% chance of it dropping to 2.90, now it is still time to buy. Sure can earn 30% return in 3 months. Enjoy the show!

You mean RSI?

2.90 I am waiting. Come on I know you can do it. Sell lower and lower!

2.90

If you ask me, the main reason why Armada is issuing massive cash call is because it is expecting hugh contracts coming soon. It needs extra capital for the massive contracts, something like skpetro merging and listing for massive contracts. Just hold on guys. Whether you buy at 4.00 or 2.90, all will be rewarded in 6-12 months. Do not scare of the current crash. It is just part of the game when first quarter results falls 40%. So its share price should fall 40%, which should lead to RM2.90 per share. However, do not worry, second and third quarter earnings will catch up, so do the share price. The lagging creates hugh opportunity for all of us to ride the earning momentum of this counter. Hold tight. 100% gain in 12 months is not a dream.

Local analysts all pakat with Big punters to cheat retail investors with their manipulated target price. We just need to get used to this. Do not believe in those target prices. Our own target prices can be more accurate.

2.90 i am waiting. Come on Armada, I know you can do it.

Some punters have no more money to collect bonus issue and rights issue, therefore they have to sell now to get cash for cheap bonus and rights issues. This gives us cheap cheap mother shares for bonus and rights issue. Come on Armada, I want lower price, 2.90!!! Come come come!

Yup, the lower they push, the higher our profit is. Let them push lower and lower so that we can buy at cheaper price. Come on 2.90 Armada!

Come on 2.90 Armada!

If you strongly believe in Armada's future contracts, then you should buy and wait for 6months. If you want to punter Armada shares, just wait at 3.15 to collect.

Those fund managers are either extremely unhappy of Armada's massive cash call, or its financial results...however, after cash call, it should jump back up to 4.00. The drop in share price during cash call forces all of retail investors who get caught buying Armada at higher price to be forced into buying Armada's bonus and rights issues. At the same time, major shareholders can top up less money to subscribe for Bonus and rights issue. These are all the tricks uses by major shareholders to push down Armada share price.

100 retail investors buying at 3.44, but one fund manager has sold many lots at 3.44. That is why it is still dropping.

Who? Of course retail investors start buying in. Volume buy are so small. But the sellers are quick to sell at 3.44.

I will not be surprised if that fund managets push down price to 3.15.

I am waiting at 3.40. Somebody purposely selling at 3.44 continuously.

Creditors and debtors,especially local banks such as RHB Bank, have to tolerate some negotiations in favour of perwaja. This is because if perwaja goes bankrupt, RHB will lose the money. THerefore I suspect Pheng Yin Wah and Perwaja is playing "Taichi" with all the creditors and debtors. Pheng Yin Wah will say," you guys need to give me benefits by cutting down interest of payment, deferment of payment, or else I bankrupt and close shop". They will delay, delay and delay until in the end no choice but to accept terms and conditions in favour of perwaja. In the meantime, whether perwaja lose more money or earn some money depends on its cost of production now and price of selling of steel. As of now, you see China steel imports are coming in crazily. All bought up by local construction and property companies because they want cheap steels. Perwaja has to compete. Will perwaja continue selling at a loss? Steel price lower and lower, but iron ore price is also lower and lower. Now China is stimulating construction again, iron ore price jumps up a bit, steel price continue going lower and lower. Lower and lower selling price until how much perwaja can untung?

Challenge number 4: Only insiders know this. Rumours also can tell. Pheng Yin Wah keeps repeating that Perwaja is in the midst of finalising the debt restructuring exercise and no updates available until to date. Key word is Finalising, finalising and finalising....When they keep finalising and finalising, it means all creditors and debtors do not agree on the terms and conditions...Time is running out, by December they have to finalise something. If they still cannot finalise, that means possible BANKRUPTCY. Selling assets to bayar hutang. Close down shops.

Challenge number 3: Ask your friends in Terengganu to watch if Perwaja's concentration and pelletising plant have been completed how many percentage? If this is still hanging in the air, then no hope. If this one is nearly completed or already completed, then perwaja can start this gradually. However, chance is that the concentration and pelletising plant is not running or already stop running or stop building or whatever. If the plants are operating, definitely they have to announce it on Bursa Malaysia. Easy way is to spend some money, buy airasia ticket, go to Terengganu to have a look yourself.

Challenge number 2: The cost of steel production has to be much lower now compared to months ago before it was being closed down. This is to make sure it actually can generate more profit/ reduce loss at lowest cost possible. If its cost of production is still as freaking high as compared to China, then the future is still no good. Ask your friend in Terengganu to watch if the plant is actively producing steels and if their inventory of steel is high or low now.

For those investors still holding this company, what you need to watch is about the restart of operation of perwaja steel plant from May 2014 onwards. Pheng Yin Wah needs to start the operation after petronas and TNB agrees to reconnect electricity to the steel mills. This is the first challenge. You guys can actually ask your friends in Terengganu to see if Perwaja is operating again or not. If Perwaja is starting to operate and producing steel from its Terengganu plant, then it means there is hope. This is Challange number 1.

PN17player said AAX results are not that bad. I want to laugh. You need to read the details carefully in order to trade.

Haha, I am sure many retail investors still "dream" about airasia flying to 3.50 by year end. No harm of dreaming.... I like that.

You know, there is no problem with my personality. Problem lies in that PN17player does not know about the facts that I have mentioned past few days. Of course, we need PN17player to profit from trading. Otherwise without PN17player, my profit will be reduced.

Haha, PN17player, you need to know how to respect people. BullBear and me know each other very well. Of course I know BullBear, and BullBear knows me. Too bad PN17player is new to airasia, so you do not know me.

For short term trading, you need to be fast to respond. But for long term trading, you can buy and keep at current price. As for now, the quarter profit is only so so... Rm3.50 target price is one I would laugh. Of course, MAS restructuring is very very important now.

Haha, in sharemarket trading, it is not sa one direction as you think. Just to respond to your cut and paste, I bought at 2.40 and profitted. It dropped immediately then to 2.20 straight down. Of course I wanted to confuse BullBear.

MAS restructuring can be a "double-edge sword". At one way, it Conserves cash, raise airfare- benefit airasia. In another way, it takes passengers and profit away from airasia- airasia may suffer. With KLIA2 at "LV bag" standard, but airasia can only charge "low cost" fare, The elevation of airasia cost structure to near MAS, it can potentially become disadvantageous to airasia.

Airasia is supposed to be growth stock. This quarter earning will not be a game changer. However, if we can keep for 2-3 years,2.30 is cheap enough. But for short term punters, Profit from here is there, but not much. Well, no harm buying at current price, but I think I can wait. 4 cents dividend by 2nd June, good to play for "4cents gain".

For frequent players in Sharemarket, we all know the importance of local banks' analysts target price and their limitations. For new or inexperienced players, They think those analysts are professional experts- as compared to players like me who use real money to play.

In case some people like PN17player are unclear about rm3 impact on airasia quarter ly earnings, the rm3 is to compensate increased cost incurred on airasia from now since transferring to KLIA2, not the profit/loss from Jan2014 to April 2014.

Apparently PN17 does not know in airline industry,more passengers =/ more profit. I assumed some of us here know, but apparently PN17 does not know, but instead laughing at I said 20million passengers, the result of this quarter, or this year 2014 will not be good. When you are unclear, you laugh. Once you are clear, you will not laugh.

KLIA2 as LV bag has nothing to do with first quarter results. I did not even touch on first quarter result because it will not be "good", just ok ok only.

Transferring of cost to customers means KLIA2 cost is indeed higher. Higher cost will impact earnings, for sure, unless airasia can increase airfare. Rm3 is a reflection of increase in airfare, albeit by manipulation. More increase in cost from now on, just the beginning. PN17 is only looking at tunnel vision. What is there to laugh? These are no jokes.

Base line is- first quarter profit will not be "growth", but flat to reduced. The ones I mentioned above are future impact. I did not talk first quarter profit because many already know, except some retail investors.

Can airasia increase airfare to compensate for increased cost? This is the main question that can only be answered by MAS restructuring. CIMB analyst Raymond Yap has told all speculators that airasia can increase its airfare after MAS restructuring. However, MAS has just introduced 50% airfare reduction for June 2014-31December2014. How? This is only a buy on rumors sell on news trade...also termed as "sucker rally" for punters to earn short term money.

You can read back Affin Investment Bank analysis last year when he gave airasia 2013 target price of rm3.00 above. His analysis now showed NEGATIVE EPS growth of 15% in 2013. Now they project EPS growth of 17.9 in 2014? Trustable? It means earnings in 2014 will be much higher than 2013? Much higher= growth. This is just assumptions by local analysts.

Can we buy LV handbags with no extra cost? LCCT is non branded handbag, KLIA2 is LV bag. Manipulation of public minds is they key to success in Public Relationvhandling of this issue, by causing a little bit...of... Confusion.

Some of the extra handling cost, aero bridges ... We're not imputed into airasia's low cost model in LCCT, said Aireen Omar. Increased cost at KLIA2 is CLEAR and ABSOLUTE. You can read those "fine words" from airasia administrative staff with good reputation.