Monday, May 23, 2016

My little blogging

I know I have not been writing much especially on other counters besides Airasia. Looking back to 2 December 2015, when I wrote this, it was tough because there were so much negativity in the stock. I saw one huge opportunity and continued to write despite its ridiculous pessimism on the company by so many readers.

Part of the snapshot of the article I wrote then
During then, the thought by many people was that Airasia was almost going down the path of Malaysia Airlines. If you search my writings, I have written about MAS as well but it was more towards my pessimism over the company - but not Airasia.

Investors or even most analysts are weird people, they follow the herd. If you look here, during then Airasia's price targets in most cases was lower then RM2.00. One even priced Airasia at RM1.05. What makes them changed their perception 5 months later? Isn't an investor or advisor (analysts) supposed to see ahead than based on past and short term results?

Thursday, May 5, 2016

MWE's land sale: Is the price right?

MWE just announced a sale of several combined piece of land (making up a gold course, I presume) together with the gold course management company at total value of RM70.1 million (RM54.93 million + RM15.17 million - owing for the gold course). The total land size is 481,925 sq mtr or 5,187,397 sq ft., hence making the valuation for the price of the leasehold land at RM13.51/sq ft.

Where is the land? As below, it is near Denai Alam, Sunway Kayangan and Cahaya SPK.

Monterez Golf and Country Club which is possibly the property which MWE sold

My question is, shouldn't the land be worth more as adjacent land around the area are worth around RM150 nowadays.

I am not good at looking the difference between a golf course and a commercial or residential property, but it looks weird that there is such a huge difference.

Friday, April 22, 2016

Airasia: So this cannot be right! (Updated)

As a shareholder this cannot be right especially if the founders is trying to get the minority shareholders to vote for the placement come 9 May 2016.

The founders are selling at around RM2.10, while picking up the shares en bloc at RM1.84. Trading is ok, but not in this manner, unless they do not want the placement to go through.

Shareholders should reject the placement with this happens.

Although it is mentioned that the shares is being sold by another director, Dato' Abdel Aziz, one beg the question why sell now rather than later...

Sunday, April 17, 2016

Airasia: Harder for founders to get private placements through?

Boo!!! So Tony Fernandes and partner did a dare and announced a placement to themselves and the minorities bought it. Now we think the shares of Airasia is not RM1.84 but higher. (You see investment besides fundamentals is a perception game in the short run)

It is a voting machine in the short run, but a weighing machine in the long run. (Airasia had that moment in the last 1 year, where it started with GMT)

Despite Bursa approving the placement, will it get pass the minorities hands? At today's price of RM2.13, it is after all 16.1% [(RM2.09-1.80)/RM1.80 - after dividend] premium over the price they supposed to purchase at - RM1.80.

The founders will not be able to vote and Airasia has a largely huge free float. Will all these shareholders vote for the placements - which I think needs a minimum >50% approval?

Now it seems a rights is a fairer option - but not necessarily a preferred option for the founders and short term shareholders.

But do remember, stock is a weighing machine in the long run!