Posted earlier: Stock Quiz
Here's the answer: AirAsia!
That's the stock! The one that I like so much. :D
Let's see...
2nd December 2008, on the Edge Financial Daily
- 02-12-2008:- AirAsia suffers record drop on 3Q loss
by Chan Tien Hin
KUALA LUMPUR: AirAsia Bhd, Southeast Asia’s biggest discount carrier, posted a record decline in Kuala Lumpur trading after reporting its first loss since going public in 2004.
The carrier slid as much as 14 sen, or 12%, to close at 98 sen, the second-worst performance on the benchmark Composite Index. It closed 13.5 sen lower at 97.5 sen with a total of more than 12 million shares traded.
AirAsia lost money on trades held by the bankrupt Lehman Brothers Holdings Inc and on wrong-way bets on oil prices. Chief executive officer Datuk Seri Tony Fernandes also faces slowing travel demand at the airline’s Thailand hub, which has been paralysed by a week-long anti-government protest.
“It’s a sell,” Christopher Eng, an analyst at OSK Research, said in a report yesterday. “We are concerned about its longer-term prospects as its associates continue to bleed and AirAsia reaches saturation point.” .....
Here's the snapshop of the report.
Few days later, 9th December 2008. Note the change of analyst. AirAsia is still a SELL with a target of 67 sen.
Next report is something that I don't understand. I must be flawed as usual but for me it was like a I-dunno-how-what-where-why kind of thingee.
It's now NEUTRAL with a target price of 0.93!!!!
Here's the explanation..
Huh?
I don't really understand. Doesn't reiterate means to say again? Well OSK last call on AirAsia was a SELL with a target price of 67 sen. Suddenly it's a REITERATE NEUTRAL call with a much higher target price of 0.93 sen! Did I miss out a report in between?
Hmmmm.... never mind. I must be flawed.
Then came AirAsia massive losses in February and OSK maintains their call at Neutral with a price target of 0.93 sen.
Three months later, AirAsia announces its next quarterly earnings.
OSK calls AirAsia "Success Of The Low Class Model"!
WOW!
6 months ago in December it was a SELL with a target price of 67 sen.
3 months ago OSK was talking about spring cleaning and being NEUTRAL in the stock with a target price of 0.93 sen.
NOW it's a BUY, BUY, BUY with a target price of 1.75.
On the Edge Financial Daily today, there's yet another article OSK Research reiterates buy call on AirAsia
So good ah?
Everyone now can fly?
How now my dearest MooMooCow?
You want or not?
And you do know very, very well that I cannot guarantee if you can lose money here.
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10 comments:
wow this ng sern guan guy really sucks
Just puzzled...
Head of research for OSK is the Chris Eng fella. He made the big, big SELL call on AirAsia - which is a rarity for OSK research.
In less than amonth, this NG fella starts writing on AirAsia.
Makes you wonder...
*whistle*
ps: tahniah on your new cbox. :D
Never trust a broker. Esp brokers with dealing desks that "trade" against their clients as well.
OSK is just a chinaman operation trying to act big-time charlie.
*shy*
free drop by la :D
2 diff calls from same broker fishy la.. unless chris eng never review his work (unlikely imo)
Chris Eng is head of research hor.
Strangely he was the one writing this report I blogged on many years ago.
http://whereiszemoola.blogspot.com/2006/03/disclaimers-continued.html
:D
Lousy osk's analyst.....NG fella must be one of the unhappy employee to sabotage OSK.. before this i read their report randomly, now i guess better not
Chris used to cover O&G and Aviation before he take over as the head of research.
Weird thing is why he allowed Ng to made a big swing to his Sell call in such short period of time.
tohff7,
Exactly!
Chris is the HEAD of research at OSK.
How can he allow someone under him to make such a drastic change to his call?
Makes you really wonder...
First, the market is not static - it's dynamic and always changing. Especially in this volatile environment, recommendation can change. It will be stupid if one hold on to his recommnedation forever and never make changes when the market dynamics change, especially for the airline business. In fact, many airlines have commented that this crisis is the toughest environment that they have ever seen!
Second, as you guys noted, there's a change in analyst coverage. And the research report reflects the analyst's view. You don't expect everyone to have a same view, right? Even Chris is the head, I believe he has to respect Ng's opinion, as long as Ng is able to justified his call.
AhBeng,
Look at the chain of events.
In early December it was a sell at 67 sen.
Come two weeks later, it was changed by someone under him to a NEUTRAL 'suddenly'.
Price moved was a drastic 67 sen to 93 sen.
Is this correct?
Did the things in December justified such a big change in valuation within 2 weeks?
I must be flawed for I cannot see why.
Sorry dude.
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