Give me a sign
Hit me baby one more time
Was the key phrase which proppled Britney Spears to stardom back in 1999.
Today, Airasia like many other airlines are cringing on those words as investors, get to hit airlines stocks one more time.
CIMB now values AirAsia at 60 SEN a share while Hong Leong says its more like 48 SEN a share.
According to CIMB, Airasia had a cash balance of RM2.6 billion at end-2019, including RM1.2 billion of sales in advance of carriage.
"We estimate that AAGB’s total monthly cash burn rate may be around RM527 million, with (1) fixed cash operating costs of RM192 million/month, after assuming a 32% cut to the run rate of RM283 million/month in FY19; (2) cash costs for operating lease instalments and financing expenses of RM258 million/month; and (3) fuel hedging losses of RM77 million/month, using US$35/bbl Brent as the average spot price for the rest of the year." the research house said.
Basically, what this means is that the carrier has just 6 months of cash left before it goes kaput or some how gets a cash injection.
Back in the USA,this is what WARREN BUFFET has been doing. And there is also talk than the broader S&P index could fall by 1000 POINTS
