Update: Airasia-ce 175% profit in a month

This few days Airasia has been jumping up the chart. It is really a good news. Many of my friends are asking for my opinions on Airasia. Of course, I give them a thumb up. I like Airasia a lot. In fact, i started talking about Airasia on my blog since June 2009.

Here are the links to my previous posts about Airasia:
http://cathoon.blogspot.com/2009/05/airasias-quarterly-report.html
http://cathoon.blogspot.com/2009/06/airasia-vs-mas.html
http://cathoon.blogspot.com/2009/06/now-everyone-can-fly-airasia-boleh.html

When i first shared about Airasia-ce on 19 June 2009, it was trading around RM0.06 only. Now it is trading at RM0.165. Those who bought airasia-ce on 19 June 2009 would have reap a 175% profit within a month(and still climbing). Airasia also increases 26%.

Earning 175% (for airasia-ce) or even 26% for (airasia) within a month would be an enormous achievement.

In my humble opinion, I still think that Airasia is still worth investing. I still consider Airasia very cheap compared to other airline stock (MAS and Tranmil). Airasia is on a strong uptrend. That's why i still haven't close my positions on airasia-ce. It is just an unrealised profit.

Airasia-ce is trading at 0% premium, 4 gearing and with 36 days to maturity. Since it is 0% premium, that make me less worry about the decreasing time value of call warrant. With 0% premium, it is like i pay nothing (RM0) for the time value.

Each percent increment on Airasia would be (theoretically) mean a 4% increment on Airasia-ce and vice versa. Since Airasia (airasia-ce's mother) is on a strong uptrend, i would like to make good use of the gearing.

So far Airasia has been making Malaysia proud. Now the world knows that Malaysia has the world best low-cost airline. I salute you, Mr Tony Fernandes (Airasia founder and CEO). Thank you for your contribution to our country. Malaysia Boleh!

When my friends ask me whether airasia will keep on rocketing up.

My answer to them is "I don't have a crystal ball on my hand, i just know in order to make profit in stock market we must buy low and sell high. Buy when good companies drop and sell it when they turn higher."

Thanks to Mr Warren Buffett and my father Mr Choo Siew Hoo. I learn a lot from them. Now i am learning to better control my emotion. I train myself not to get too excited when the market rockets up and not to panic when the market dives.

Malaysia Boleh! Airasia Boleh!

Good luck in your trading.

GOon