MAS result already announce.. will effect this counter tomorrow.. cancel plan to buy this counter tomorrow.. juz wait below RM1.. then buy back Brahims...
Well, my original intention was to buy when it fall below 1.35 but refrain from doing it. No matter how good a company it is but when it is going against the headwind why would you want to take the risk ............
Sold all mine stakes at a big loss and pick up Scicom .....
once all settled, I bet this one will go below 1.00 in 1 to 3 months
Posted by RedEagle > Aug 28, 2014 07:06 PM | Report Abuse
MAS result already announce.. will effect this counter tomorrow.. cancel plan to buy this counter tomorrow.. juz wait below RM1.. then buy back Brahims
As I said, hold it tight if u are confident on it & don't panic sell because of the rumours or news as it is just for short term only! In other word, if u dont sell it, who is going to buy it from market with cheaper or lelong price then so the share price will still maintain even though there is rumours flying around!
3pm the announcement by Khazanah, so I think best time to sell today for those that no confidence, else any bad news, it will be hard to sell on Monday
1. option 1 - contract termination - unlikely as both may want win win situation
2. option 2 - revised contract - to lower price for catering - likely option
anyway, brahim will be negatively impacted from 1. lower profit from reduced pricing from existing contract 2. lower revenue and profit from poorer business from mas as mas will close few routes due to declining overall passenggers
strange, so many ppl jumping back rather than making use of this tecnical rebound to sell off. maybe there is insider news that mas is offering contract upgrade for brahim? increase margin to 20%, make crazy profit for inflight meals? or speculating on the 300m penalty? how much is left after clearing all the debts?
Do you read that catering cost is just a very small % of MAS operating cost? They are not closing down MAS, so will still need catering maybe capacity lower due to cutting of routes. The main costs to cut for MAS is staff costs, which is 30% of the 20,000 staff force ? This move might not be good for the economy, not just Brahims. Imagine 6,000 people without job, how many of them can get another job in short term ? Pity them :(
privatize of MAS still go back to Khazanah.....not outside ppl...semua orang sendiri ,will never let this comp.die.....if privatize by not related parties or foreign investor..i cabut first....
But original contract should have termination clause compensation ? No ? Anyway Brahims management should be closed to Khazanah's people oso, else how to get major contract ? Hmmmm, sell or not ?
i don't think they will terminate and compensate. some kinda of negotiation will happen, to pursue a long-term working relationship, i guess. even if compensate, you have to consider the debts as mentioned by tommyzai. the main point here is the previous attractive contract with old mas will be sort of "renewed" with the newco. in what way, i don't know. it could be plain new contract or sale of stakes in BAC to newco. but either way, do you see any potential upside for this counter?
there are many undervalued property counters trading at attractive price today. at least they are without those uncertainties flying around mas and brahims. you may want to consider this option
Brahims still alive.. 6Billion inject by Khazanah to MAS until 2017.. 6k workers terminate does not relate to Brahims.. now hope Brahims open more halal mall at foreign countries.. good.. time to bounce back 1.60..1.80..$2... makan tetap makan..halal toiyiban food..
for those who haven't sold, the MAS Act will jolt you up from your sweet dreams very soon. and if you are not too stupid to comprehend, this Mas Act could be the reason that prompted the management to come up with the idea of selling off the core business a few days ago. like you said, they are insiders
sometimes, you can't think when you are emotional. i know it because i was there. but i was luckier because i suddenly woke up asking myself why the heck am i holding shares in a company that is not showing any potential upside in the near future when there are other undervalued counters claiming new highs every now and then? think of the opportunity costs, and do you know that something is considered niche when nobody is interested in it? and why so? it's simply because the return is pathetic compared to the efforts. imagine what will happen to the margin if there is competition in this industry. this is exactly why syed mokthar is not expanding his capacity!!
in short, in-flight catering is an industry that must be strictly "niche" in order to survive. low margin and limited market. i wouldn't be surprised if the 70% stake is sold back to mas at the end of the day
regardless of the potential 25 yrs contract termination, Is brahim business still profitable ? at this price I q to buy, it is a mid term stock, that is what the institution investors are betting on.
I still maintain same strategy in this counter, buy low(dropped by 18-25%) or see the reverse signal, sell in rally or negative rumour. Until the MAS topic closed, you may consider to buy in again. I still have pretty good future outlook on this counter for long term. MH17 case almost done. MH370 searching kicked off again. The recovery should be happen in short time. Happy trading :)
this fella has the same stupid name as this counter. 370 searching starts again, 17 case close? what have these got to do with future earnings? nice arguments you have here, die hard supporters. ppl behaving like you are those who have got mas at high prices and held on until today, and starts to complain when given a premium of over 40% for a loss making mas
@ tommyzai: I do not what is your problem? Why talked shit here. Do you see Warren Buffet or Solos here? It will be great if you are sharing good opinions. Trading is personal decision, people opinions are for you to differential whether you should buy and sell. All at your own risk, same objective to everyone to make a good profits, thats all. I never touch MAS since the first day, MAS is my main concern since i started to touch on Brahims. If i'm a die hard supporter, i won't sold 50% of my shares at 1.7-1.75 with average price at 1.81. If not due to MH17 and MH370, could you tell me the true reason why the shares dropped so much? You look like an expert to me now.
you are a joker!! what has this got to do with wb or solos? what shit are you talking about? you are giving misleading views. things happened and the sentiments will not change in "short time" like you imagined childishly. you can't pretend 370 and 17 never happened!! and ppl start to trust mas even if restructuring of mas is done!! trust is broken and definitely will not recover in a "short time". this is discounting the fact that lucrative contracts are renegotiated. you said mas outbound flights will be taken by other airlines which are clients of this counter. but all these are ASSUMPTIONS!! because the financial results said otherwise! if you care to read the statements, you won't be here making your CHILDISH ASSUMPTIONS to mislead other readers!! despite the bad sentiments, you are one of those die hard supporters recommend others to buy in!! reason being simply you are EMOTIONAL with another 50% of shares to offload! i WOULD NOT want to say you wanna cheat others to buy in because you wanna offload your shares!
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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....
Funtrade
596 posts
Posted by Funtrade > 2014-08-28 18:52 | Report Abuse
Everyone else selling and you claim this is a fundamental company?
U thought u r buffet & other investors noob ar.
Last piece of advise. Don't be the last person holding Brahims.