Ocpd this is mainly caused by the interest charge as a result of mfrs 16 implementation. The off balance sheet operating lease is now treated as right of use asset in balance sheet and interest is charged as a result of stated in present value. The interest charge at the first few years will be reverse throughout the remaining lease period in the end.
Why is there interest charge in operating lease? How long before the lease period ends? To me the cash flow doesn't lie and it doesn't look good in the near term, it is sustained on selling of aircraft and debts for now.
Sold aircrafts and lease back, what are the excuses given then? The truth is it needs cash. Whatever accounting std used is also just an excuse, ultimately bottom line count. Remuneration, if not linked to bottom line, they will dig all wealth, along the way only give some penny dividend. lol.
truth is: - long haul business is a gruesome business Air Asia speciality and expertise is still short haul business looks like they have not learned the long haul business yet
thats why Air Asia Group is giving AAX the KL to Singapore route to make profits. Will use AAX wide body craft to cramp more passengers inside. This way will make more extra profits for both AAX and AAG, win win cooperation and then both AAX and AAG share the extra profits.
I would reset the whole business as a new business This price of 16 to 18 sen will be a good entry and mouth watering for new investors.
Original IPO investors too bad lah. Actually you should have known Air Asia expertise is short haul business, but thats hindsight. Hindsight is known as backsight, dunno one when you were back then.
for existing investors, never ever sell at the super low unless risk of going PN17 and totally no hope. Some will not even sell upon PN17.
for new investors, always buy in at the super low and deem it as a new business
there is no reason to sell coz management is taking concrete steps to turn it around including but not limited to grabbing the profitable KL Singapore route
There is still Hope a new Hope
There is every reason to buy and no reason to sell..
Posted by Sales > Nov 14, 2019 10:58 AM | Report Abuse Cut loss and go to profit stock....you can get same or lower price. Don't wait.......
On the bright side, the adoption of MFRS 16 would have a positive impact on Ebitda (earnings before interest, taxes, depreciation and amortisation) as lease expense would be replaced by depreciation and interest expense
i fly regularly to and fro kl and sg..the flights are always full..might be a good and strategic move to have one of the busiest and profitable international routes in the world
Tony was at Virgin Artlantic aka Virgin Airways in UK, he was accountant there and Richard Branson was his boss there.
the formula is the same.
dun worry, AAX is getting the KL Singapore route to make some profits
Posted by airport8 > Nov 16, 2019 2:21 AM | Report Abuse Tony Fernandez says he knows how to run airline business better than MAS ... lousy, look at this AAX...continuously bleeding...haha...jerk
... Management and bod: mainly non performers, results proved that. Perhaps non of them is capable to look into pricing and cost management, as well as dynamic critical analysis; ...TF: too ambitious to expand into other areas, ended up lack of focus in his own best know how; ... Fundamentals: all in red and is quite unlikely to improve in near future. Borrowings 6.2b, current liabilities is too high reflecting some undisclosed issues (status of overseas partnerships?); ... Real value: some like to use NTA as a selling point for certain stocks, today its nta is 0.05. Some uses potential cash flow, but today only see continuous outflow. Some uses potential earnings and PE but unfortunately only see widened losses.
Major overhaul is necessary to put it back into right track. Cash calling, management change, objective KPIs which link to remuneration. In short, aax is lucky as there is still many supporters here, otherwise it may drop to its real value. If Warren were to ask about his view, what would be the possible answer?
Investing in AAX need patience and skills. Some good companies producing good result but share price drop. Some companies producing bad result but share price is going up. Whatever is it, most important is where is your cost per share, against the market share price. AAX need 2-3 for harvesting. Now is reaching the lowest I ever seen. Although the overall business environment would face have a lot of challenges especially coming 3-5 months.. but this price 0.150-0.160 is very very attractive. Start to invest progressively and you would see handsome return in the near future. Happy investing :)
hoping another tweet from Tony Fernandez...this year would be the best every for AAX... now eat your won medicine....why he eager to buy MAS.so than he can bleed MAS to save this AAX ..lost faith to this tamby.. AA already gone case..Tony and Maranum already siphoned out money from AAB through fat dividends.
TF then and now: Past... younger and energetic, business focus. Now....older and not as energetic, too many things to take care but too bad, team isn't performing. See the price chart of Aax, AA, Tunepro. Positive correlation?
The stock code itself hinded "not easy to survive and to become rich". Good luck and get ready for cash call as cash flow is bad and limits its ability to borrow from bankers.
Bornwinner : I agree with you . Bornwinner Many are trapped for many years. The longer we wait the lower price is going to be 20/11/2019 7:50 PM
AAX has been going down hill..Many AAX investors has been trapped for years at AAX. The longer we wait for AAX, the lower AAX price going downwards.
I have sold my AAX today, and trade that for Alam. I sold my AAX at 0.155, and buy Alam for 0.145
With the changing of money from AAX to Alam, these will give me a chance to recover back some of my money from AAX.
At least, AAX is a sunset industry and a money dripping counter. But Alam at least is a growth company, and still have lots of room to grow and potential to get back our hard earn money.
Cheers Alam...go go go Alam Near TP0.215, Next TP 0.3
yongch :Besides recently negative impact,The main reason why price keeping down all bcoz one overseas BIG players proposed tf interested bought over but he need lower the price below 0.12,leave it or take it!!! TF got no choice but slowly bring down price,tp0.12!!! 20/11/2019 4:09 PM
Thanks yongch, for sharing...
All AAX investors, at 0.155, you will not want to wait till AAX 0.12, then only run right ? Run now, and change AAX to Alam... Both are A, and Alam will give you A result, just like Armada gives us, an "A" result..
As always choice is yours, to believe or not to believe is always your call. To get rich or to get riches is always your call too.
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....
cat lim
1,284 posts
Posted by cat lim > 2019-11-14 17:12 | Report Abuse
lol. continue put hope. later tony privatise at nta price = 0.05 hahahaha
10 years later relist at 1.2 again