Investing into AirAsia

I have been holding into AirAsia shares since July 17, 2006 (whilst I am still studying in USM). Between the time, I already made some profit by buying and selling AirAsia's shares, though not much - it has somehow gave me some useful experience.

As time goes by, and the weaking of global market (and some says that we are going for recession) gives me the opportunity to buy AirAsia (5099)'s at discounted price and accumulate into existing holding. I was able to buy below the par value, and collecting them all together still making the average below par.

AirAsia has never announced any dividend(s) to date, but the shares are likely to soar when the market is getting back on its feet again. But some factors are needed to be given consideration, namely the OIL FACTOR and INFLATION FACTOR.

As the oil prices have been announced to hit another history at USD170 a barrel, and AirAsia are operating their fleets which consumed huge amount of oils, hence will get affected very directly. But, as we all k now that Tony Fernandez is a man of ideas and he has lot of creativity, I am positive that AirAsia will recover given the fact that AirAsia successful track record.

And seeing from another perspective, the likely and increasing inflation rates in Malaysia will effect power and expenditures volume. People will spend less and will look at on how they can save their valuable earning penny.

All in all, I am positive that AirAsia will make some good progress very soon. I just wish that I have some money more that I can spend to buy the shares and keep it as a long term investment.


M. Shahirasul Idrewoods
USM, Penang.
5.34 pm