The first time I heard about AirAsia, is from friends around me.
People start talking about AirAsia.
“AirAsia’s ticket is very cheap”,
“It’s a new airline, you can fly with only RM9.99”
“now flying to Penang is cheaper than driving”
wow, this company is really cool....
I love Airasia, because she makes “every one can fly”.
and She makes me able to fly.
Before the existence of AirAsia, I never fly. The air tickets are just too expensive. Being attracted by its “One Million Free Tickets” promotion and the low prices, I had been flying with AirAsia more than ten times during past twelve months. And because of AirAsia, I and my wife can have our honey-moon in Bali.
Thanks to AirAsia.
When flying with AirAsia, I found that it is almost full-loaded in every flight, especially during weekends. When the price is cheap, just about every one likes to take a flight.
So, some voices come into my mind,
“I like this company, she really makes every one fly”
“this company must be making plenty of $$$$$”
“Buy its share!”
A lots of people don’t believe in the business model of AirAsia.
“the air tickets are so…… cheap…..!!!!”
“how can it make profit out of that….???”
“the low price is just temporarily, it will raise the price later, or it may not survive”
“how long can it last before going to bankrupt?”
But for me, I believe in the magic of Wal-Mart:
The lower is your price, the more money you make.
And I really love the phrase sound:
“the more you help people to save their money, the more $$$$ you get from them”
Wow, this is the greatest idea in the world. The feeling of “earning money while helping people to save money” is just like “getting rich while doing charity”. Sounds cool……
And, you know, AirAsia is doing the same thing as Wal-Mart. So, I decided study this company.
2 comments:
When I decided to buy AirAsia share, (about six month ago), as any investor will do, I went through its annual reports. Then, I found that it’s not financially strong enough. It’s very young, and its share price is too high for a conservative investment.
(Base on its financial reports of 2005 & 2006, its share price of RM1.40 gives a PER that is >25, and net asset is less than 50sen per share)
So, I wait… hope that its price will fall to a lower level that I consider cheap enough.
While waiting for its share price to drop, I continue my study on this company. I’m amazed by its fast growing history and the story of Tony Fernandes. Then, I found that there are quite a numbers of low-cost-carriers out there, some founded more than 20 years ago (e.g. Southwest Airline), they made lots of money, and they keep growing for many years, and finally become giants. So, it gives me confidence that AirAsia may survive, and grows as those LCC fellows, then keep growing for ten years…… twenty years…… may be fifty years!!!
The last two quarterly financial reports from AirAsia confirmed my view. Its revenue and profit is growing so fast that in early 2007 it overtakes MAS as the airline of largest market share in Malaysia (in term of passenger carried).
But, during these months of researches, instead of falling (that’s what I hope it will be), AirAsia share price is getting higher, around RM1.90 now. However, I found that the rising rate of its share price is slower than its growing financial condition. Its PER now (FYE 2007 projected) is about 10~12. This is cheap enough for this strong growing company.
This is the business that I really love to invest. It’s such a wonderful company, as Warren Buffet said, “the ideal period of holding its share is forever”, because it will keep growing for many years in the future.
Today, I have about 10% of my fund invested in AirAsia, and I wish to increase it to about 20%. I don’t have extra money now. So, I'll keep accumulating its share when i get my salary in the ends of coming months.
So now, every day I pray:
AirAsia……don’t rise……don’t rise…….the bull don’t come…… comes the bear…... keep falling….. until I get my bonus $$$ in the year end…..then I can buy a lots…… hahaha!!!
Just received a payment for $500.
Sometimes people don't believe me when I tell them about how much money you can earn by taking paid surveys online...
So I took a video of myself getting paid $500 for taking paid surveys.
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