Hi Icon, it is right for you to be apprehensive of AAX. However, isn't the breakeven a good improvement over the huge losses recorded previously? If you are forecasting eps of 4.4sen, what would your target price be? Do you think it is justified?
Bottom line is this........even with AAX making zero profits for the rest of this year, the share price will be at least 30 sen....as long as it is not a loss.
Now with oil price at 40 and ringgit stronger....I chop it off if AAX do not make great profits for the rest of 2016.,,,, does not need much to support a share price of 30 sen......
But needs a lot of certain profits to support a share price of $ 1.80,
What I hate most is all these amateurs making adjustments to audited accounts without having spoken a single word with management....this out, this in, this ......this green, this red, this recurring, that not recurring.
Icon......you think you are picking fruits in a market?
For your info, even a simple thing such as realized forex gain is not for you to throw away....it just as reliably a sales item for that period. Far from as simple you amateurs think.
Silly ladies may be impressed with you. Certainly, I trust PW partner who are paid a million$ to audit the accounts, to be more familiar with the company than an outside blogger.
If they indeed achieve 4.4 sen EPS, target price will be 44 sen, 50% upside from now
yktay1 Hi Icon, it is right for you to be apprehensive of AAX. However, isn't the breakeven a good improvement over the huge losses recorded previously? If you are forecasting eps of 4.4sen, what would your target price be? Do you think it is justified? 23/03/2016 14:58
It's always a pleasure to read your article, another good analysis!
I think AAX's books is really cleaner than Airasia, it doesn't have so many things like AAI, AAP to drag it down.
What i like most is the average fare is going up @RM563, signals good pricing power.
(By the way, if you look at how AA price its fare, fare starts at low level, after a certain % of tickets sold, price increases a little bit. Fare at dec and jun are basically the same if you book early. In fact, fare for high season should be more expensive. They should have better prediction system to do that. )
AAX is slightly different than AA, as they have limited capacity and often harder to add frequency.
(By the way, for the ordinary people, deep breathing press against the pancreas and release 50% more blood from storage into blood circulation. More blood makes your heart work less, so your heartbeat slows, plenty of oxygen to your brain = less stress).
Thx icon for your analysis. Analysis of a company as complex as aax needs certain assumptions n real operating profits are more important than one off items like forex gains n extraordinary gains. Fuel costs are the top priority.
Only empty shadows without real knowledge of what is important in the world of financial analysis keeps saying this or that...without pratical knowhow to back it up. Falsified self glory...sigh
With eps of 4.4 sens its definately good. However again we must see how it goes. Investing is an art n needs judgement .
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
yktay1
464 posts
Posted by yktay1 > 2016-03-23 14:58 | Report Abuse
Hi Icon, it is right for you to be apprehensive of AAX. However, isn't the breakeven a good improvement over the huge losses recorded previously? If you are forecasting eps of 4.4sen, what would your target price be? Do you think it is justified?