$SIA (C6L.SG)$ All these are my personal views. None of thes...
$SIA(C6L.SG$ All these are my personal views. None of these points are either a recommendation or a tip to buy or sell. It is your hard earned money so invest wisely. Do your own due diligence before buying or selling any share.
Pros of SIA (and Airline Stocks):
- SIA is a Crown Jewel of SG. No matter what, SIA is here to stay.
- Majority stocks of SIA are held by strong group. As long as they are confident and holding on to all their shares then we don't need to bother.
- SIA has an internationally reputed brand image.
- No technology can replace air travel. So this Airlines industry is here to stay. (Note: We have seen Smartphones destroyed Digital Photo Camera market).
- Global High vaccine % rate can open up International Passenger Air Travel. All countries are trying their level best to improve on the vaccination rate.
- Even during this tough times SIA is able to manage well by narrowing losses via other avenues (like improved cargo travel, etc).
- SIA has all three segments of flights. High End (Singapore Airlines), Mid Segment (Silk Air) and Budget Airlines (Scoot). So they are going to mint money once things return back to normalcy.
- If at all there is one sector which is going to bounce back hard and fast once the global pandemic is over is Airlines stocks.
- To makeup the losses incurred over the years, once the passenger air travel is open, the air carriers across the world will set the price higher than usual. Note: Higher demand for passenger air travel will help this cause.
- SIA is a Crown Jewel of SG. No matter what, SIA is here to stay.
- Majority stocks of SIA are held by strong group. As long as they are confident and holding on to all their shares then we don't need to bother.
- SIA has an internationally reputed brand image.
- No technology can replace air travel. So this Airlines industry is here to stay. (Note: We have seen Smartphones destroyed Digital Photo Camera market).
- Global High vaccine % rate can open up International Passenger Air Travel. All countries are trying their level best to improve on the vaccination rate.
- Even during this tough times SIA is able to manage well by narrowing losses via other avenues (like improved cargo travel, etc).
- SIA has all three segments of flights. High End (Singapore Airlines), Mid Segment (Silk Air) and Budget Airlines (Scoot). So they are going to mint money once things return back to normalcy.
- If at all there is one sector which is going to bounce back hard and fast once the global pandemic is over is Airlines stocks.
- To makeup the losses incurred over the years, once the passenger air travel is open, the air carriers across the world will set the price higher than usual. Note: Higher demand for passenger air travel will help this cause.
Cons of Airline Stocks:
- Nobody knows when things will return back to normalcy wrt passenger Air Travel.
- It is not just the high vaccine rate of SG matters to open passenger air travel but the vaccine rate of other countries also matter. Not sure whether other countries are as fast as SG in terms of achieving high vaccination rates.
- Even if passenger air travel is open then it will happen only in phases with lot of restrictions. Air travel rates at pre-pandemic levels will take years.
- Every single month of Non-Operation of passenger flights will burn huge cash reserves for Airline companies. This will create a big hole in the balance sheet.
- Nobody knows when things will return back to normalcy wrt passenger Air Travel.
- It is not just the high vaccine rate of SG matters to open passenger air travel but the vaccine rate of other countries also matter. Not sure whether other countries are as fast as SG in terms of achieving high vaccination rates.
- Even if passenger air travel is open then it will happen only in phases with lot of restrictions. Air travel rates at pre-pandemic levels will take years.
- Every single month of Non-Operation of passenger flights will burn huge cash reserves for Airline companies. This will create a big hole in the balance sheet.
Conclusion:
- Risk Reward Ratio in Airline Stocks are high. So do your own due diligence before buying or selling an Airline Stock.
- Risk Reward Ratio in Airline Stocks are high. So do your own due diligence before buying or selling an Airline Stock.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Ricky138 : nice analysis. But thanksfully, SIA has enormous war chest backed by taxpayer money. Imagine other airline without the support like SIA has been given.Air travel will not die off, eventually, everyone gas to fly again. it is a matter of who is more adaptative to the new norm. i will still have faith in SIA but it will be of longer term.
Ricky138 : Many bad habits of SIA management has been exposed during the covid and since it was a renowned airline prior to covid, restructuring was restricted due to loss face in retrenchment and triming salary. Covid also give them the perfect excuse to carry out all these restructuring.
明 Meng : Appreciate your quality analysis. You have all the good and weak points. Very knowledgeable of you, fair and justifiable analysis.
Good ! ! ! Well done ! ! ! Keep it up ! ! !
MrProphecy : Good, let’s talk about their debt now
Ricky138 : they chalk up a lot of losses on oil hedging, excessive routes, deadweight due to high salary costs, lower productivity, high dividend and high performance bonuses for managemt team. But fortunately these are somehow look into in the past 1 year due to higher scrunity due to using our taxpayer money to keep it afloat.
Ricky138 : https://www.moomoo.com/en-us/news/post/5497236/singapore-airlines-trims-q--loss?src=2&futusource=news_stock_stockpagenews&report_type=stock&report_id=10160453&channel=4&skintype=3&level=1&data_ticket=1630366517315663
Ricky138 : positive improvement but of course they are debt laden now. But frankly, which airlines in the world are not? Hopefully when situation improves, they dont start rewarding their ceo n management for job well done with fat bonuses.
Rocket MOO Ricky138 : very sound judgement. Echoe my sentiments too.