Air Arabia Stock Price June 2010

mosimafia · pauper Joined: 06 May 2010 Posts: 3

Dear Share talk viewer,

I would like to check if any one knows why the Airarabia stock is not moving much recently?
The prices has not changed much from the range of 0.83 to 0.865 over the past several weeks ?

Will there be expected price decrease in this company ?

Appreciate your comments

Mohsen

small fry · Posted on Tue 15 Jun 2010 09:11 by **small fry**

I think AA is one of theose "safe stocks" which are somewhat stable. It is independant of the RE market , but is part of a sector that is suffering in the current economic situation.

I think AA management have been fairly transparent about their operations. It is therefore not volatile and offers a somewhate decent dividend at the end of the year. The only major problem , I believe, AA could have is cash flow, but seeing it is a pre-paid service their only real challenge is keeping customer numbers up. So far they have floated well and posted good growth. Q2 & Q3 results of 2010 could be the deciding factors of where it is headed with :

a) New competition (Fly Dubai etc..)
b) Passenger figures (though new hubs in Casablanca,Alex and Amman could help with this)
c) Fleet maintenance as it ages.

Investors are therefore in a wait and see mode and trading on this scrip is of the more active variety with stable price. I think its current price reflects a somewhat low expectation from investors that they will post a return as high as in the oast couple of years.

if I had some loose cash I would probably buy at the 0.85 level, but then again, that may be why I am small fry
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If this sounds stupid, maybe that is why I am small fry !

ixtira · horse trader Joined: 11 May 2009 Posts: 191

AA is a stable company, however its performance does not relate to its Share-price. Like almost all stocks on the DFM AA has a positive Beta Number which means its price tends to move with the market which is dominated by Real Estate companies.

It’s not so such a strange concept, if the Real State market picks up then more money will be draw to the DFM and most stocks will benefit. Meanwhile back in the real world AA will probably keep on adding planes, routes and making money.