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just my two cent, for short term investor it not a good time now as the share is volatile caused by oil price. but for mid to long term, it safe to say it is possible for aa to hit 3.0 per unit as long as you are patience enough
Frankily this counter is not for today buy and tomorrow sell or Intra day. If you do not have holding power of at least 2 to 3 months for this counter go other counter that are more fluctuate in nature. Aim for 15% as TP from 2.48 is good enough but don't hope it is going to happen overnight.
Nick doesn't understand AA. But Chai is correct. Oil price will take away the operating profit. Today oil price is suddenly jump. Hopefully opec starts to increase the supply.
AA got hedge at around USD 60 for oil price. I am more looking forward in their expansion in India woth recent Tata investment plus new entry to Vietnam by end 2019.
Wade: for simple understanding, hedge = advance investment. If a company use hedge strategy to fix the operating cost or budget, it mean that they invest on the material when the price is low. For example, fuel is the primary cost for airasia, so Airasia make advance investment (hedge) when to stabilise their cost while oil price is extremely volatile.
