Invest in AirLine company?


Do you buy Airline stock? Or I should ask, if you have a spare fund, would you set up an airline company? For certain reason, I will NOT involve in the airline business or buy the stock, however, below preferred share (Mas-PA) is an exception.


Recently, one of my client told me, MAS-PA is going to expiry on Oct 2012. He gave me big thanks as I told him to buy MAS-PA two years ago when the news of Japan Airline break up, all the airlines' stock price around the world drop like no tomorrow. I still remember, that time, MAS-PA record lowest of 65 cents. With the price of 90 cents today, is it worth to invest for short term till October to get back RM1.00?

This report take from Philips Capital on 17 Apr 2012


If you are looking for very short term of 6 to 7 months of investment and satisfy with 11% for 7 months, or 18% per year, then, it's a good idea to invest in MAS-PA. I would think this is better than directly invest into MAS's mother share which currently cost you RM1.30. On maturity date, DO NOT convert to MAS share, but redeem it with RM1.00 is the better option. 

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