Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
Wrong. Earnings will grow and the Equity metrics all turn positive.
Besides, the remaining businesses in Capital A all command a much higher PE Rating. Average Airline companies Global PE is around 7 to 8. Which is why AAX share price spiking to 2.3 is stunning. @ 2.3 the PE is 50+. Crazy !
@Pierre T, you're right. I'm baffled seeing the spike in AAX price. Reasons:
1. The equity base just grew by 5x
2. The Debt from Capital A is RM 3.8 Billion. Nothing positive to justify the spike.
Here's my opinion:
The share price reflects Earnings per Share. Not the Absolute amount of money earned.
On that basis, with a PE of 1.8, the price can only go up once CapA exits PN17. Global Average PE for an Airline is around 17. But, CapA is selling it's Airline business, which is even better. Remaining businesses usually have a higher PE rating than Airlines.
That's My take on the situation. Not a suggestion to but or sell.
