Parent company doing well, not affected by oil price. Dividend declared but sonny boy aax continues to suffer. Seems illogical, looking more like a scam :(((
After election change new government . many contracts related from BN government will cancel ,All change already market uncertain,funds managers and foreign funds selling related GLC company and BN cronies company money would not flow in big cap and mid cap stock now because in future their earning will big drop and no prospects,because everybody scare buy high losses money ,expect fund manager money would flow out in big and mid cap stock cannot hold and buy. All low prices stocks.This is a opportunity ,markets money now flows in cheaper stocks. sharks now start goreng lows price stock at bottom..
aax is long haul burns fuel much more...so easier to make loss...long haul budget is not proven profitable world wide..no airlines can make money on long haul budget..airasia is still fine tuning itself to make a perfect model..it takes a longer time...if fuel is cheaper aax can make decent profit still...
AAX has a lot down side cause, it is not 100% own a lot of thing from management perspective can not fully implement. Venture to Asean market have to comply their local regulation which is challenging given that respective county want to protect their own airlines.
As long as it does not have 100% ownership efficiently is hard to achieved which is the core of budget airlines
When AAX started, I think the idea is to make it dominance in Asia region, so go setup hub on India, PHP, THA, JPN etc..... but then it hit a lot of challenges as no all Asia country share the TF inspiration.
Now TF direction is shifted to similar model like grab or airbnb, asset light but still sell airplane space for travel. That is why it sold of planes.
Tan Sri Datin Paduka Sri Rafidah is the chairman of AAX ..she is the one who help the government and one of the favorite members who recently join BERSATU... government will cooperate with airlines to bring in more tourist to boost the economy... very bright future for AAX
04-Dec-2018 Insider DATUK KAMARUDIN BIN MERANUN (a substantial shareholder) acquired 13,177,700 shares on 03-Dec-2018. 04-Dec-2018 Insider DATUK KAMARUDIN BIN MERANUN (a substantial shareholder) acquired 12,000,000 shares on 30-Nov-2018. 04-Dec-2018 Insider TAN SRI ANTHONY FRANCIS FERNANDES (a substantial shareholder) acquired 11,783,500 shares on 03-Dec-2018. 04-Dec-2018 Insider DATUK KAMARUDIN BIN MERANUN (a company director) acquired 13,177,700 shares at 0.223 on 03-Dec-2018. 04-Dec-2018 Insider DATUK KAMARUDIN BIN MERANUN (a company director) acquired 12,000,000 shares at 0.211 on 30-Nov-2018. 04-Dec-2018 Insider TAN SRI ANTHONY FRANCIS FERNANDES (a company director) acquired 11,783,500 shares at 0.220 on 03-Dec-2018.
Looks like something interesting has happened here.
Before i start, early last year i made a lot of money from Airasia. Then i switch to AAX. I was naive to believe KM's talk of privatisation, then i lose a lot of money.
So this time i will be a bit conservative dealing with AAX.
Ok. First, TF and KM steps down a few days ago. Both became non-executive directors, and handed the helm to Thailand's AAX CEO.
Announcement shows Thailand AAX is making profit for the last three years and that's why they chose this Nadda Buranasiri. (Strange enough another music guy)
Last few days TF and KM buying aggressively, signaling support and turnaround potential. (It doesn't mean they are right though)
It's really annoying to see this AAX don't know how to make money. Previously TF commented MAS doesn't know who they are. AAX also don't know who they are.
With such a low cost, just a little bit of fine-tuning should make tons of profit, don't know why they always fail to do so.
About 6 years ago, TF came to my place to promote AAX IPO. I still remember he said: "the growth trajectory of AAX will be very very similar to Airasia. " Well, that was totally wrong.
They have changed their CEO, now chairman. Let's hope this time it will work.
Last year AAX got some free routes from Airasia, don't know if it work out but share price keep on falling.
long haul budget is very challenging so far no long haul budget airline is successfull in the world ...so be patient...if oil is down ...aax will profit...in future when ancillary income increase substantially to cover revenue..aax will be less dependant on low oil price...til then up n down is normal...
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....
Flyinghorse
3,702 posts
Posted by Flyinghorse > 2018-11-29 15:55 | Report Abuse
Slipping slipping slipping.......