Stocks in the news (AAV, GMMM) 03.05.13

AAV

TAA sets goal of 60 planes — Thai Air Asia is taking its fleet enlargement program a step further with 60 jets now expected to be flying by 2017. Chief executive Tassapon confirmed the newly revised fleet size, an upgrade from the previous goal of 53 by 2016 and 48 before that. (Bangkok Post, 03/05/13)

Comment: Minor upgrade for AAV, not surprising given the continued growth in travellers.

GMMM

Grammy unit sells 22.12% holding in Matichon — GMMM sold its 22.12% in Matichon PLC for Bt470mn. The SET reported a big lot sale of 43.388mn Matichon shares by GMMM for Bt469.94mn, an average price of Bt11.09 each. The buyers were not disclosed. A Grammy executive said the sale of GMMM’s entire stake was made because Grammy wanted to raise funds to invest in digital TV, for which it has a budget of up to Bt5bn. (Bangkok Post, 03/05/13)

Comment: We think the Grammy has to raise a lot more capital if it is going to be bidding for the digital channels, it’s balance sheet in its current state is far too weak to take on debt to finance any plans going forward.

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