SC & Bursa KL: Have You Checked The “Accounting Practices” Of AirAsia?

Hong Kong-based GMT Research has issued a report questioning airline AirAsia Bhd‘s accounting practices, accusing it of using transactions with associate companies to boost its earnings, according to a copy obtained by Reuters.

 

The report was issued on June 10 to GMT’s subscribers and since then shares in the low-cost carrier have lost 14 percent or 812 million ringgit ($215 million) in market value.

 

“We are in discussions with the company about our concerns,” GMT’s founder Gillem Tulloch said in a statement on the research house’s website.

 

An official for AirAsia did not immediately respond to a Reuters request for comment.

 

Maybank analyst Mohshin Aziz said in a note to clients on Friday that while the airline’s shares had been hit by an independent report accusing it of accounting anomalies, he was maintaining his “buy” call on the stock.

 

“We believe AirAsia’s accounts are transparent,” Mohshin said in the note. “The auditors have approved the latest 2014 accounts without any qualification.”

 

A spokeswoman for PwC, the company’s auditor, declined to comment, citing client confidentiality.

 

For full Reuters’ report read HERE.

 

cropped-GMT-logoGMT Research provides independent insight into markets, sectors and companies throughout Asia. Our unique method of mining a comprehensive collection of corporate financial statements for key data allows us to evaluate the financial health of a company, sectors and the market at large. We also investigate the application of accounting standards by companies and sectors, shedding light on the quality of reported profits. Please read HERE.

 

It is hoped that En Mohsin Aziz’s confidence was not misplaced otherwise the image of Maybank will be adversely affected.

 

In view of the seriousness of the GMT Research report on AirAsia’s accounting practices, the Security Commission and KL Stock Exchange (Bursa Kuala Lumpur) are duty bound to carry out an in-depth investigations into the serious allegations by GMT Research with regards to the “AirAsia accounting practices that were using transactions with associate companies to boost its earnings“.  Such investigations are very necessary to instil confidence of the investing public to invest in our capital market.

 

 

 

 

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52 thoughts on “SC & Bursa KL: Have You Checked The “Accounting Practices” Of AirAsia?

  1. Kamaruddin

    Where is he going to hide now? The big mouth is in total silence now. If what GMT had reported were not true he would have gone on the rampage to bring to task GMT. His total silence over the report is a clear sign of his guilt.

    BK Sidhu the journalist cum “prostitute” please help your pay master. No worry she will come to his assistance. She will do damage control for him.

    Reply
  2. Hanafiah

    If Tony is a unable to bullshit anymore then he should instruct its auditor PriceWaterHouse to speak for AirAsia. Now they are all deaf & dumb. I wonder why? Now Everyone Can Laugh – Ka Ka Ka!

    Reply
  3. Peng

    Now Everyone Can See AirAsia Share Price Tumbling Down. Tony will accuse MAS for the share price to nose dive into the drain.

    Mueller please think before you speak. Stay as far as you can from AA. If you are forced by the idiots in Khazanah then just resign and tell all about it openly. Then you regain whatever honour there is left for you.

    Reply
  4. Ian

    What are SC and Bursa KL doing about this serious allegations by GMT. In short, the report said that AirAsia cooked its book. An audited account must reflect a true and fair view of its business. From GMT report AirAsia’s accounting practices did not conform to the standard accounting practices. No wonder priceWaterHouse refuse to comment. SC and Bursa please investigate otherwise the investing public will loose confidence in our market.

    Reply
  5. Anonymous

    The good news is the pariah is now unable to brag of his so-called success story. Hi success story relies on his Spin Doctor, BK Sidhu. Of late, the Spin Doctor is having difficulties to spin because the pariah’s modus operandi had been exposed.

    Reply
  6. IT.Scheiss

    Air Asia shares on Bursa Malaysia began their slide from RM2.80 on 9th Feb 2015 down to RM2.06 on 26th of May, rebounded to RM2.20 on 1 June, 2015 when 3sen per share dividend was announced, then down to around RM1.81 on 12 June (last Friday) and closed at RM1.79 on 15 June 2015 (Monday) and is down 5 sen as of 10.39 am this 16th of June, 2015.

    Notable is that Air Asia shares plunged from RM2.03 to RM1.82 on Thursday 11th of June, the day after the GMT report published on 10th June, 2015 and embargoed from the media till 24th of June, according to GMT’s website.

    https://gmtresearch.com/research/airasia/

    Air Asia shares hit an intra day low of RM1.73 on Friday 12th June before closing at RM1.81, forming a black hammer (solid) candlestick. It opened 1 bid (1 sen) down at RM1.80 on Monday 15th June, hit an intra-day low of RM1.74 and closed 1 sen down at RM1.79, also forming a shorter black hammer candle stick.

    As of 11.14 am this 16th of June, Air Asia shares are down 6 sen at RM1.73, with 4.537 million total bids (buy orders) versus 7.07 million asks (sell orders) as of 11.19 am. So far, it’s intra-day high so far today is RM1.78 with RM1.71 being the intra-day low so far.

    Air Asia shares closed at an historical high of RM3.82 on 9th July 2012 and have never reached that level again since then despite rises and falls in between, Air Asia shares have generally been on a downtrend since 9th July 2012.

    Share prices go up and down based upon demand and supply driven by market sentiment (not always rational) which in turn is driven by an opportunistic desire for a quick profit especially when the price of a share rises, even briefly.

    The candlestick patterns on Friday and Monday suggest that the current plunge in Air Asia’s share price is slowing and could be bottoming out as total buy orders (bids) of 5.2 million versus 5.96 million sell orders (asks) as of 11.47am this 16th of June, 2015, which shows rising rising demand versus shrinking supply compared to 35 minutes ago, so taken together this suggests that Air Asia’s share price could rebound soon, though exactly when, by how much and for how long is left to be seen.

    My remisier’s advice is to buy low but only when a stock’s price has made a short term pull back within an overall uptrend, reaching higher highs and higher lows (pull backs) during each minor rise and fall (pull back) cycle or “wave” within the overall price uptrend.

    He warns against buying low when a share’s price is in an overall downtrend, since despite a brief rebound, such a share’s price will generally tend to trend further downwards in the longer term, resulting in the investor losing money.

    Also, according to the Chart Nexus graph for Air Asia, the 20, 50, 100 and 200 moving averages (MA) are all moving downwards, whilst the 26 and 12 day moving average convergence divergence (MACD) formed a “death cross” when it dropped below the 9 day MA signal line on 9 June, 2015 and has dropped steeply since then.

    To share traders, a death cross is a sign that a share’s price is about to fall, whilst they watch the charts for the opposite called a “golden cross” where the MACD indicator rises above the signal line, indicating that the share’s price is about to rise.

    It would have been crazy to buy Air Asia shares on Friday 12th June, 2015 when Mohshin Aziz advised that he maintained his buy call, but his call would make sense if he meant that his readers should monitor Air Asia’s share price and buy when it has reached the bottom of its current bear run (downtrend).

    Air Asia’s share price stood at RM1.71 at 12.13pm, this 16th of June, 2013, down 8sen from RM1.79 at yesterday’s close with trading volume of around 9.035 million by this time of the trading day.

    The FBMKLCI rose by 0.11% this trading morning, after a series of down days.

    Given the price of Air Asia’s shares this 16th of June, 2015 trading day morning, I predict that Air Asia’s share price will close lower at market close at 5pm, forming another bearish black hammer candlestick, with an opening price 1sen down from yesterday’s close, so I don’t expect it to rebound today but possibly within the rest of this week or next week but by how much and for how long I cannot say.

    Well that’s my two sen worth on Air Asia.

    FYI: I hold no shares in Air Asia right now nor have the intention to buy any based upon principle.

    FYI: All the above figures were read from charts and graphs on my stockbroking firm’s online trading portal and Bursa Malaysia’s figures as presented by the free Chart Nexus application on my PC.

    FYI: I am just a casual trader, NOT a professional stockbroker with a licensed stockbroking firm. Neither am I an employee of any stockbroking firm, investment house, analyst firm, bank, finance house or finance department.

    Reply
    1. Kana

      IT. Scheis

      Thank you for your updates. You have been great and quick. We enjoy reading your comments.

      Before 2 pm today AirAsia share price is RM1.71 down by 4.7% from this morning price. It is steadily and surely going down further. No one will trust a company that cooked its books to show that it is healthy. Until today no one form AirAsia comes out to defend its accounts or at least clarify. Padan muka to Tony.

      You play with fire and you will die with fire. The musical chair is stopping soon. Where are you Mueller? Do you still want to collaborate with a cook?

      Reply
      1. IT.Scheiss

        Kana, Thanks for your kind compliments, which I am not sure that I rightly deserve.

        As at 4.15pm, 15 minutes before Bursa Malaysia closed, Air Asia’s share price stood at RM1.65 or 14 sen down from yesterday’s close and went down further to RM1.64 at 4.50pm.

        When the market closed at 5pm on 16th June, 2015, Air Asia’s share stood at RM1.64, down 14 sen from its opening at RM1.78 at 9.00 am in the morning and down 15 sen from the previous close.

        Air Asia shares were initially listed on Bursa Malaysia on 17th November 2004, priced RM1.25.

        Today’s close is already below its first post listing high of RM1.95 at which the share price closed on 10 January, 2005. It is also below the closing high of RM2.11 on 7 May, 2007 and its all time high of RM4.14 at close on 2 August 2011 based upon analysis data which goes back further than the free version of Chart Nexus provides. Since then, the share price has not reached such a height again.

        The lowsst closing price in AirAsia’s history on Bursa Malaysia was 79sen (RM 0.79) on 24th June, 2008.

        At close at 5pm this 16th of June, 2015, there were a total of 885,500 bids for Air Asia shares at RM1.63 versus 686,700 asks at RM1.64, whilst there were 8.047 million bids versus 5.467 million asks.

        Both these figures suggest strengthening buying pressure over weakening selling pressure, which suggests that Air Asia’s share price may rebound soon, perhaps towards the end of this week or next week.

        This is quite normal after such a rapid and steep drop during the last few days, just as a pullback soon follows a share price which rose sharply and strongly the previous day of few days.

        Anyway, the bigger question is how strong and sustainable will the rebound be. Well, that’s left to be seen.

        Also, today’s intra-day price opened one bid (10sen) below yesterday’s close was mostly dominated by selling pressure which resulted in the share price reaching momentary intra-day lows of RM1.63 towards the end of the trading day but was lifted back up to RM1.64 by buying pressure.

        This intraday trading pattern formed a long “black” (solid colour) hammer candlestick with very short tail (or handle) below the candlestick body.

        On the other hand, today’s drop in Air Asia’s share price was steep and second only to the huge drop of 11th of June and after two consecutive days of small drops, and this could mean that Air Asia shares will fall even further, pulled down by bids parked at lower prices, such as 2.27 million bids at RM1.62 and 1.27 bids parked at RM1.60.

        The speed up in Air Asia’s share price drop today, coupled with bids parked at prices lower than today’s close could continue to drag the share price down further before it reverses and rebounds.

        Stock markets are like auction houses where whilst there may be a certain aggregate quantum of demand but actual trade occurs at prices acceptable to the respective bidding parties, so a surplus of buyers over sellers does not necessarily mean that the share price will rise.

        Well, we will know tomorrow.

        Once again, that’s just my two sen worth.

  7. Anonymous

    The share price of the low caste airline is now RM1.71 as at 2:20 pm today. http://klse.i3investor.com/servlets/stk/5099.jsp

    I bet you it will go lower. Its time to run before it is too late. We have had enough of the pariah’s bullshit. I hope the little napoleon in Khazanah is not going to get Mueller to collaborate with the low caste.

    Reply
  8. jack1960

    Grave outlook….

    With MH virtually dead in the water & AK Group facing adverse capital market reports, the governing bodies should react NOW to avert a total collapse of our civil aviation industry. The key word here is react and they have obviously not thought out this damning scenario before or just ignored the signs….for reasons better known to themselves!

    There will be no spinning out of this mess, whoever you are. MAHB, you too, will face a similar fate, sooner rather than later. Followed by of course, we Malaysian tax payers. We are already feeling the repercussions, resorting to other carriers & more transit time.

    With more new local carriers coming on-line, the situation will only get worse with excessive competition. As I said before in the other threads, the Puduraya outlook is looking more real by the day. Ultimately, every carrier dies.

    Reply
  9. Now Everyone Cannit Be Conned

    With the revelation of the act of playing with numbers, no one will ever believe him or AA. it’s game over for the low caste and his low caste airline. May be President Obama will come to his rescue in November to launch its Hawaii flight. What a joke? he may not see the light of the day when November comes!! Bye2 Tony boy. You are now caught with your diaper down! Cheers!!!!

    Reply
  10. Fuad

    Today closing prices:
    AirAsia Bhd. RM1.64 down 8.3%
    AirAsia X. 20 Sen down 6.82%

    The pariah to blame MAS for the down trend of its shares. That’s the pariah’s attitude. He is suffering from “Its not me syndrome”. Let’s all sit tight and watch the collapse of the house of cards.

    Reply
    1. Heng

      IT.Scheis, your analysis is informative. However, I would like to add a few points to it.

      AirAsia share price hit RM4.00 plus in 2011 and that was during the height of MAS- AirAsia share swap at that time there were massive movement of MAS & AirAsia share prices. When the share swap was reverse, AirAsia share price was on the down trend until now. I am just curious why was that.

      As for AirAsia X the ipo was launched with a bang and BK Sidhu of the Star Business shamelessly wrote that the AAX IPO share will be oversubscribed by 6 times. But that didn’t happen. Since the opening until now it is on the down trend. The IPO price was fixed at RM1.45 and it was opened with RM1.25. Today it is only 20 Sen. The morally of the story is not to read what BK Sidhu or Star Business writes because it will mislead you.

      Now that AA’s image had taken a beating because of GMT, you will be surprised if BK Sidhu and her associates will come out with more articles to help tony and/or AA to spin positive stories. So better be prepared.

      I cannot agree that AA’s share prices will rebound because investors will shy away from any share if there is a report of its accounting process are in question. Wouldn’t you? My take is AA and/or AAX wil not rebound in the near future. It may not rebound at all until there is a change of management.

      Reply
      1. IT.Scheiss

        Thanks for the informative background as to the events behind the share movements.

        Air Asia’s share price is down a further 14 sen by 11.33am 17th June. Total asks outnumber total bids by 2 to 1, so you could well be right that there will not be a rebound in the near future.

        However, by “rebound” I mean that a share price may rise a bit before it continues its downward trend, driven purely by speculators who just want to “surf the wave” even when the tide is going out, whilst longer term investors who rely on fundamentals sell or stay out.

        It will be interesting to see how Tony Fernandes or Air Asia responds to this GMT report.

        Dunno how The Star will respond to this GMT report.

        Anyway, I got something to throw in the face of any Tony Fernandes and Air Asia fans who go on about how Tony turned the loss making airline around etc.

        I never believed that Air Asia could have succeeded without help from some quarters in government.

  11. Ha Ha Ha

    The market will be very suspicious of a company that has been accused of messing around with its accounting practices. Investing public loose faith easily in such situation. I do not think that the rebound will be so soon as predicted by some. May be certain unprincipled & mercenary reporter like that bitch BK Sidhu will do anything for you know what. Now Everyone Can Laugh Out Loud.

    Reply
    1. IT.Scheiss

      The term “technical rebound” is a short term rise in a share’s price after a long series of falls before it continues its downward trend again. Some traders take advantage of this to make a few quick bucks.

      Agreed, no sane investor would trust AirAsia stock long term.

      Reply
  12. Teh

    In the light of what had been reported by Reuters of a GMT report, the Security Commission and Bursa Malaysia must commence an investigation otherwise members of the public will lose their confidence in our capital market. So please do not sit still and act in the public interest. The rakyat want action and not just talking and talking.

    Reply
    1. IT.Scheiss

      Yes, they should but in Bolehland, things don’t always happen as they should.

      Just look at how the Malaysian authorities have acted over consumer complaints about misleading ads by Air Asia, how MAHB reacted over not receiving PSC collected by Air Asia and so forth.

      Reply
  13. Zaidi

    Until now Tony could not come up with acceptable answers or clarifications to the GMT report. He only expressed his anger against the report and condemned it. This is not how a real corporate deal with an adverse report. No defence was offered.

    SC and Bursa have to commence an immediate investigation in order to protect the interest of the investors and our capital market. If no actions are taken by these two authorities then people will lose faith in the system. Please do something about the serious accusations as reported in GMT Hong Kong and reported by a reputable international news agency REUTERS. If Tony thinks that AirAsia is so clean then it should sue GMT and Reuters. I rest my case for the authorities to act.

    Reply
    1. Zul

      I second the call for SC and Bursa Malaysia to take drastic on such serious matter. If GMT report is true then someone must go to jail because they are cheating the investing public. Messing around with the accounts will not be condoned in any civilised society. We are all waiting to see what SC and Bursa are going to do over such serious matters.

      Reply
  14. Razak

    Why are SC and Bursa so slow in taking actions over such serious expose of a public listed company, like AirAsia? A bunch gaji buta lots! Shameless ofrficers!

    Reply
  15. Con Air

    SC must come down hard on the con man otherwise he will do as pleases. Put him behind bars will be the best for Malaysia,

    Reply
  16. Jay

    AirAsia share closing today RM1.54 down by 6.7%

    AirAsia X closing 20 Sen.

    Now Everyone Know AirAsia is in deep shit!

    Reply
    1. Nazri

      If SC and Bursa are still quiet them MACC should be called in to check. I am glad that the Pariah is in deep shit now.

      Reply
    1. weechookeong Post author

      Thank you sdr. I will still be publishing factual matters of public interest especial on public listed company involved in questionable accounting practices.

      Reply
      1. IT.Scheiss

        Congratulations Sdr. Wee and good that you will still have time for matters of public interest.

      2. IT.Scheiss

        Sdr. Wee, it crossed my mind just now that perhaps you can start a blog about the tourism industry where readers can share our views and opinions about it and report matters which we feel discourage tourists, such as taxis overcharging, the declining quality of service and so forth.

        Like I know a couple from Australia who wanted to take the LRT from KLCC to Petaling Jaya but did not know how to buy a ticket from the self service ticket machines, which I too have found not particularly user friendly.

        I understand that this couple could not get much help from the counter staff at the station so took a taxi instead.

        I feel that Malaysia is too reliant on IT-based systems which are more complicated to use than automatic ticket machines in London in the 1970s, where you look up a chart for the amount and buy a ticket for that amount from the machine.

        Here they use these touch screen displays which are complicated just to press the button for the station one wants to go to.

        Fortunately for me, I generally use a MyRapid stored value card or a Touch nGo card but does Prasarana expect everyone to get a MyRapid card.

        That is why I dub myself “IT.Scheiss” not because I think that I am scheiss (shit) but that many of the claims made about IT are shit.

  17. A Pariah is always a Pariah

    That low caste has been bragging about his CEo Aireen Omar bought AA shares. Ay Thambi! that does not mean anything. no need to tell the whole. Tell us what have you done to the AA’s account. How you doctored? How you cooked it? That is what we want to know.

    Reply
  18. wee choo keong

    IT.Scheiss

    Thank you so much Sdr for your kind words. It is going to be tough to divide the time between the legal profession and Tourism Board. I will try my very best for Malaysia and YB Dato’ Nazri Aziz, the Minister of Tourism and Culture.

    wee choo keong

    Reply
  19. wee choo keong

    IT.Scheiss

    Thank you for your suggestions. I have been thinking about it. I may start a new blog or revamp the existing Malaysian Tourism Board altogether to make it more interactive where tourists or any one for that matter can lodge a complaint. I hope to get this out from the drawing board real soon. Please stay tuned.

    Thank you for your thoughts. I do appreciate it very much. I welcome more ideas from the readers to help me make Malaysia Tourism Promotion Board more effective.

    Once again, Thank you Sdr.

    wee choo keong

    Reply
    1. IT.Scheiss

      Sdr. Wee,

      Your idea for revamping the Tourism Malaysia website to allow for more public feedback and complaints is a greater idea than a blog but knowing how Malaysian civil servants tend to ignore complaints or act on them too slowly is something to watch out for.

      I and my fellow residents have complained online to MBPJ and by e-mail directly to the councillors and sometimes even face to face but have received few replies and much less action, which has been very frustrating for us.

      Basically, with all the infighting going on within the BN and now formerly Pakatan camps and between BN and the now former Pakatan, Malaysian politics is in a shambles and they are too busy politicking to care for the the “mundane” concerns of the rakyat.

      It short, they are like little Neros fiddling whilst the proverbial “Rome” burns.

      Like if the Public Accounts Committee cannot act more decisively with regards 1MBD then what more more can we expect.

      “Barking at 1MDB won’t change anything if PAC has no bite”

      http://www.theantdaily.com/Main/Barking-at-1MDB-won-t-change-anything-if-PAC-has-no-bite

      Like what moves are the Securities Commission and Bursa Malaysia doing to investigate AirAsia following GMT’s allegations in its report. When will they move to act?

      Why did Aireen Omar buy shares in Air Asia following the GMT report?

      “AirAsia Bhd’s Malaysia CEO Aireen Omar has bought shares in the budget airline, a stock exchange filing showed on Wednesday, after they dropped to five-year lows following a report questioning the company’s accounting practices.”

      http://www.themalaysianinsider.com/business/article/airasia-ceo-aireen-omar-buys-shares-after-critical-report

      Air Asia shares bounced up 14 sen today after six days of precipitous drop, though how sustainable this rally will be is left to be seen over the next few days or week.

      Reply
      1. Leng

        AireenAireen Omar purchased of 45,000 lots of AirAsia share amounted to RM78,000 did not in any way show that AirAsia is a good share to buy. If she wants to instill confidence, she should have bought 5 million lots of AA shares. But then it will be too costly to buy them. It was just a game to cloud the decision of the investors. Tomorrow the share price will drop for sure

        No institutional buyer will touch AA share because of the GMT reported that the accounting practices of AA is questionable. Until this day, Tony has no balls to sue because he knows if he or AA sued them then GMT will produce the evidence then AA will be in real deep shit! That’s why all the press release by Tony and/or just verbiage of the worst order. Let’s see how AA share price will be tomorrow. I believe that it will be on the downward trend!

  20. An Observer

    Tony has yet to produce any evidence to refute what has been stated by GMT. Coming out with assets in Indonesia, Thailand or for that matter New York, London or Tokyo are of no relevant and could not allay the the fear of investors.

    Allegations of the books being cooked is a serious matter. It must be investigated by SC and Bursa. As long as it is not cleared by the two authorities, Tony can come out with all the hypes and it will not help. This is my honest opinion to Tony. For the prospective investors please keep your money or place it in other stock until AirAsia is cleared by SC and Bursa.

    Stay out of AirAsia for now.

    Reply
    1. A Pariah Investor

      Agreed. If you allowed yourself to be fooled by the publicities and investment analysts of the banks calling “BUY” then you are to be blamed. Stay far away from company that meddle with its accounts. The accounts of the companies especially public listed must always reflect a true and fair view of the state of that company. Please remembers. Ignore all calls to buy, trust your own judgement. These analysts are paid to say good things.

      Reply
  21. Chef Tony

    Didn’t know that Tony is a good cook. Despite the hypes and good publicities generated by the paid analysts, the AirAsia share price closes at RM1.61. Down by 3.56%. All the hypes didn’t hell after all. BK Sidhu of Star Business please help your deaf to boss to mislead by your spin. But then no one will believe as you have no credibility at all. You better start selling susu lembu!

    Reply
  22. IT.Scheiss

    Leng wrote:-

    “AireenAireen Omar purchased of 45,000 lots of AirAsia share amounted to RM78,000 did not in any way show that AirAsia is a good share to buy. If she wants to instill confidence, she should have bought 5 million lots of AA shares. But then it will be too costly to buy them.”

    Agreed. Aireen Omar’s purchase of 45,000 lots would not have made much difference to the plunge in Air Asia’s share price. Moreover, is she had wanted to profit, she would have waited till the share price had hit rock bottom before buying.

    This latest article on the GMT report in The Star by Jagdev Singh Sidhu (no relation of BK as far as I know) reveals some interesting stuff.

    “The report by GMT on AirAsia is similar in vein, and by most accounts sparked the selldown in AirAsia shares. In it, the author Gillem Tulloch, says that AirAsia is boosting its profits and cashflow through its links with its associate companies.”

    “It broadly says that real profits have collapsed and AirAsia needs a recapitalisation.

    “The report argues that the use of related party transactions has boosted AirAsia’s profits by 39% since 2009 and is the only reason why the group remains profitable today.

    “It argues that RPTs have fattened AirAsia’s operating margins and such transactions, as the number of affiliates it has, have risen from RM13mil in 2004 to RM1.7bil in 2014.

    “As RPTs grew, the associates’ contribution to AirAsia’s operating profit has risen from 22% to 213% over the same period, says GMT.

    “GMT says AirAsia would have been loss-making if it were not for the transfer pricing to related parties.”

    And-

    “It feels AirAsia needs to raise RM7bil to restore its financial health.”

    The report goes on with Air Asis’s claim that it is transparent.

    http://www.thestar.com.my/Business/Business-News/2015/06/20/Financials-in-turbulence/?style=biz

    Meanwhile, Air Asia’s share price rose 14 sen to close at RM1.67 on Thursday, opened up at RM1.69 on Friday and closed down at RM1.61.

    What happens when the market opens next week is left to be seen but off hand, it does not look encouraging for Air Asia shares.

    Reply
  23. The Pariah

    Today Star Business came out with centre page spread. All on to paint a good picture for AirAsia. A desperate move by BK Sidhu, the journalist who has prostituted herself to write favourable story by quoting favourable analyst like Mohsin Aziz of Maybank, Shukot Yusuf the so-called independent research.

    BK Sidhu should write to say that “according to sources AirAsia will make RM20 billion or RM50 billion by next month”. Then the investor will jumkp on the bank wagon to start supporting AirAsia shares. Why don’t BK Sidhu try again quoting sources like what she did during the AirAsia X IPO that the IPO shares will be over-subscribed by more than 6 times and now the share is about 20 Sen.

    I will not trust what that prostitute wrote. She is just a mercenary. She will do anything to please her ‘boss’.

    My call is to stay clear of the shares of AirAsia or nay of its outfits until SC and Bursa officially clear them from questionable accounting practices.

    Reply
    1. IT.Scheiss

      According to their respective Linked IN profiles, Jagdev Singh Sidhu is Deputy News Editor, whilst BK Sidhu is Senior Editor (Business), so Jagdev is in the news section, whilst BK is in the business section.

      That perhaps explains why Jagdev writes one thing and BK writes another.

      Anyway I very very rarely buy a newspaper and if newsprint were not so hard, the pages of Star Business might make great toilet paper.

      Reply
  24. The Pariah

    Look at the Star Business centre spread – two pages on AirAsia. Of course, not negative story. It is just typical of the prostitute journalist BK Sidhu, the editor of Star Business. She should just put in a headline to read “According to sources AirAsia and its outfits will make RM50 billion by end July”. Such beautiful will definitely help her boss. Like what that prostitute had done previous by quoting sources that AIrAsia X IPO will be over-subscribed by 6 times”. Now the AAX share price is hoovering around miserable 20 Sen.

    She is not a journalist but a mercenary. I wouldn’t trust her at all. My take is to stay clear from the shares of all AirAsia outfits until SC and Bursa clear them of questionable accounting practices. Why put good money into a risky company?

    Reply
  25. Kcman

    Sdr. Wee, congratulation on your recent appointment as Chairman of Tourism Board. However, we all hope that you can continue to raise issues on AA and all other wrong doings of GLCs. We have invested our hard earned money into AA shares earlier, naive enough to believe his bullshit stories to take us flying high but now ended up almost crash landing. Please continue to keep us update on the actual situation which we are not able to get from main media & analysts as most of them likely have been bought or simply afraid of losing business from him.

    Reply
  26. Razif

    AirAsia looked so stupid when its Chairman of its own audit committee had to issue a statement similar to the Pariah stating that AA had revealed all details in its account that why GMT could write about it.

    Its auditor is PriceWaterHouse and why is PWH is not coming out to justify the questionable accounting practices of AA. Why is it beating around the bush? When a public listed had been accused of questionable accounting practices and it could not defend itself objectively then it is in deep shit. Stay clear of the AA group shares if you want to be safe. If you were to buy it now you will be burnt big time. Just enjoy to see the AA shares going down the drain in no time. Ha ha ha

    Reply
  27. Zakaria

    its creative accounting. Now Everyone Can Know What AirAsia Is All About. I have never touched the share of such company that lives on publicity. The show has just started. There are more to come. Touch the share and you will be damned!

    Reply

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