Casino AK ?

[essentialbus]

Picked up this story recently after a Bloomberg interview with T.F. was published.
He admitted they took a bet that oil would not go US$ 90 a barrel but it did.And its still there.

Than the "analysts" chipped in. If the price remains at these levels, AK earnings could fall by RM. 45 million a month was a comment and another one was that AK's policy was considered excessively speculative.

Then there was, as a result? substantial selling of stock by international investors which now resulted in a stock price of RM. 1.52 (US$ 0.45).

So what was behind it, just a flawed conception of economics or an attempt to make some quick bucks by going to the oil casino?

On a slightly different note, T.F. then predicted they will eventually fly twenty (20) times a day between KUL and SIN and will carry seven (7) million pax on that route by 2013.

He is not afraid, you have to give him that.

Cheers
E.B.

[Chrome]

TF has always speculated on fuel prices for as long as I can remember. He has always made something out of it but this time he has lost. Fuel costs are more than 50% of AirAsia's operating costs so he should be smarter in this area. I mean, crude oil isn't exactly a renewable resource so anyone knows unless someone invents a cheap alternative fast, its price will have no choice but to go up sooner or later. And compared to a few years ago, AirAsia now is publicly-listed and he's responsible to everyone who has put their money into the company and disclosure rulings to the bourse. If he makes bets and loses, a lot of employees, shareholders and regulators will not be happy. He's playing around with a lot of people's lives and all that on top of his daily screwing via 'work harder, get compensated less' model.

TF needs to concentrate more on the airline. It doesn't matter if all his other companies are out of tune but he needs AirAsia to be running well. Not sure why he doesn't look too concerned in this. We don't see him much in the LCCT nowadays. Maybe his acting career is blossoming?

And start paying dividends for God's sake.

[essentialbus]

Hi Chrome,

Well, it looks like we all are mistaken here.
In todays NST T.F. is back and states that" AirAsia has never speculated on fuel prices in the past and will not speculate on fuel prices going forward".

And on the sell down of the shares, T.F. said, "that foreign funds have been reducing their exposure in airline stocks over the past two months and that all the prominent low-cost carriers around the world experience heavy sell downs".

So, there you have it, according to T.F. there is nothing to rapport here, its all clean and above board and the stock price meltdown is a worldwide event. Business as usual.

What is it with these newspapers that they give him all the space he wants to spin doctor around? Never a note of critique by a journalist, he sure has them in his pockets.

Regards
E.B.