Top Reasons Why You Must Sell Airasia & AAX - take your monies and Run Now!!
REASON NO. 1
Today in Singapore News
REASON NO. 1
Today in Singapore News
SINGAPORE: Eight Asia Pacific budget airlines on Monday (May 16) formed
the world’s largest low cost carrier (LCC) alliance – the Value
Alliance – aimed at provide more destinations, routing options, and
greater convenience for customers.
The members of the alliance are: Cebu Pacific, Jeju Air, Nok Air,
NokScoot, Scoot, Tigerair Singapore, Tigerair Australia and Vanilla Air.
With the partnership, customers will be able to book flights from any
of the eight airlines in a single transaction. They will also be able
to choose their meals and seats for flights from different airlines in a
single itinerary.
The Value Alliance members currently have a collective fleet of 176
aircraft across the Asia Pacific region and serve more than 160
destinations.
Speaking to the media at an unveiling ceremony on Monday, the
airlines said they hoped to strengthen distribution in their non-home
markets, and expand their networks.
“By working together we can offer our guests a wider choice of
destination and flights – at the most competitive airfares – all in one
go,” said Scoot CEO Campbell Wilson.
“The Value Alliance is a clear example of how LCCs can accomplish
more by working together than we could do individually,” added President
and CEO of Cebu Pacific Lance Gokongwei.
- CNA/dl
Calvin comments:
With 8 formidable low cost airlines posing a strong challenge to
airasia and aax the flight ahead is filled with inclement weather. Tiger
Air already captured a good slice of the market flying into greater
China Region.
And Scoot with its modern fleet of Boeign 787 Liners have captured the
Australasian Markets by storm. Australians everywhere are giving a
thumps up for excellent Scoot service.
REASON NO. 2
Since July 2015 to Now Insiders Have Been Selling & Selling Airasia Shares
This is not a good sign:
| Date | Name | Remark |
|---|---|---|
| 26/04/2016 | TAN SRI DR ANTHONY FRANCIS FERNANDES | Disposal of shares |
| 26/04/2016 | DATUK KAMARUDIN BIN MERANUN | Disposal of shares |
| 22/04/2016 | TAN SRI DR ANTHONY FRANCIS FERNANDES | Disposal of shares |
| 22/04/2016 | DATUK KAMARUDIN BIN MERANUN | Disposal of shares |
| 04/03/2016 | DATUK KAMARUDIN BIN MERANUN | Disposal of shares |
| 04/03/2016 | TAN SRI DR ANTHONY FRANCIS FERNANDES | Disposal of shares |
| 24/07/2015 | TAN SRI DR ANTHONY FRANCIS FERNANDES | Disposal of shares |
| 24/07/2015 | DATUK KAMARUDIN BIN MERANUN | Disposal of shares |
REASON NO. 3
Airasia benefited from cheap fuel. Now Crude Oil is moving near to US$50 a barrel. So the advantage is slowly being erased.
REASON NO. 4
Airplanes involve Very High Expenses. As soon as the new batch of
planes arrive they start depreciating by the day. In the 2016 Berkshire
Hathaway Meeting Warren Buffet touted the virtue of businesses
generating regular profit with little outlay of capital. Airline is not
one of them. SEE's CANDY & GEIKO INSURANCE Qualify due to their low
cost of capital.
REASON NO. 5
Airasia has high debt due to heavy borrowings. So time to raise more
fund. With high debt Company must be always on its tip toe to generate
even more and more revenue. There is no moat or margin of safety as it
Must Compete on Cost (Low Cost). Now 8 low cost airlines are in the
fray. Making competition more crowded and stressful.
REASON NO. 6
For this cause there will be both metal fatigue due to more wear and
tear due to the very frequent use of planes. This also create stress for
the pilots. So accident do happen. Making these airlines high risk
undertakings. Once a plane crashes share price will nose dive. When 2
planes crashed into New York Twin Towers in Sept Eleven even Singapore
Airline shares crashed by 50%
REASON NO. 7
Both Airasia & AAX shares are now up more than 100% from its lows. So Calvin Tan Research now call for a strong sell.
Regards,
Calvin Tan
Republic of Singapore
AIRASIA (5099) - Airasia & AAX -Strong Warning signs now Flashing & Flashing! Time to Run for your life! (Calvin Tan)
http://klse.i3investor.com/blogs/www.eaglevisioninvest.com/96620.jsp
