Tuesday 17 January 2017

Stock Analysis: AIRASIA 5099 as of date 17th Jan 2017 (UTC+8:00)

- - - created on 17th Jan 2017 (UTC+8:00) - - -


AIRASIA 5099 BUY, SELL, or HOLD?


From mid of Dec 2016 until mid of Jan 2017, AirAsia has hit its lowest around RM 2.18. The main factor of the price drop I believe to be the action of injecting capital into AirAisa Indonesia (see link). This raise the investors' concern on the financial stability of the company. 

Due to this factor, the market has some fluactuation, what is the action to be taken? 

Again, I like to differentiate it into short/medium term investment and long term investment. However, the recommandations below are just a guideline, always do your analysis before perform any transaction.
  
RECOMMANDATION
Short & Medium Term Investor
Based on my recommandation on 13th Nov 2016. I advised that sell it at RM 2.80 if possible, or else cut loss at RM 2.30, where the price is sitting around RM 2.50 that time. As of the time I am writing, the price is now around RM 2.50 too.


If you do sell at my recommanded mininum of RM 2.30, and buy back at RM 2.20 (around the lowest it hitted before), by now you should earn around 20%.
  • For those who still hold it, my recommandation is sell it around RM 2.50.
  • For those who yet to bought, buy it at the price not higher than RM 2.20.

Long Term Investor
Whereas for long term investor, my recommandation remain the same, except now you can adjust your target buy in price from RM 2.50 to RM 2.30. 


If you bought AirAsia at the price below RM 1.50, keep holding it because I believe it is hard to have the chance to invest again at that great price.

  • For those who bought, hold it.
  • For those who yet to bought, buy it at the price not higher than RM 2.30.

My defination of Short, Medium, and Long term investor as below.

  • Short Term: 3 years and below
  • Medium Term: 3 to 6 years 
  • Long Term: 6 years and above

I am individual trader that looking forward to make friends who share the same interests, you can always drop me an email via angs.investment@gmail.com if you have any ideas would like to share with. 

Last but not least, I wish you all a HAPPY AND PROPERIOUS CHINESE NEW YEAR ! HAPPY TRADING !

 Please be reminded that above is just a recommandation, digested the info and make your own decision. Good Luck!


4 comments:

  1. At this time, when the price share is rm2.60, i really feel down hearted. i bought it at rm2.99 so selling at this price is such a loss. Should i just let it be?

    ReplyDelete
    Replies
    1. Hi Jannet, nice knowing you. A few things to ask yourself.
      1) Are you short term or medium/long term investor?
      2) Are you currently aiming for any other potential stock?
      If you are short term investor, and aiming for other potential stock. Go ahead and sell it because I believe it will not have any room for significant price raise in 1 or 2 years time. However, if you yet to find any potential stock, perhaps you can consider hold it, because The price is quite stable around RM 2.60.
      If you are medium/long term investor, I will advise you to hold it because overall AirAsia is a good company. I believe in at least 3 years time, the price might still hit back around RM 3, so that you have the chance to breakeven. Meanwhile, the years of waiting you can enjoy the dividend / bonus benefit if any.
      Like I always said, this my personal opinions for your references, there are always more factors to be considered based on your own portfolio.
      Think about it and hope it does help you come out with your conclusion.

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  2. How about Earning /Share , ROE , OCF for Air Asia shares.?

    ReplyDelete
    Replies
    1. Hi there, I have put those Ratios you interested in the link below. Have a look.
      http://stockbasic101.blogspot.my/2017/03/your-answer-17th-mar-2017.html

      Delete