I have holding power. Should i continue hold SIA stock until end of Covid, which means around 1-4 years later at the price of $5.20?

Personally, I won’t. And here’s my reasoning.

1) Free cash flow

https://en.m.wikipedia.org/wiki/Largest_airline...

Looking at the above Wikipedia link (Fairly accurate info), I’m asking myself. How can an airline in a small country without a domestic market & who’s not in the top 10 list of passenger count, revenue, destination etc beat the top 10s to be the best airline in the world? The company pumps a large amount of money into upgrading, serving the best food, in flight entertainment, suites etc which is a good move for an airline in a small country. However, it means that the company has huge capital expenditure that exceeds its free cash flow.

2) Airline industries are very competitive and runs on extremely thin margins. With the decreasing cost of Budget airlines and foreign airlines increasing its reach around the world, consumers are essentially spoilt for choice when picking an airline to fly with.

3) Unpaid leave. I’m sure some of us in one way or the other heard of the company’s stance on implementing unpaid leave on and off for years. I admit I’m no expert in the reasoning behind this but from a retail investor point of view, what do you think about this?

4) Opportunity costs. As an investor, do we want to park our hard earn $ here in hopes that things will get better or park them somewhere with some certainty of growth?

With that said, the above are purely my point of view as an amateur investor and individual.

Let me know what you think!

I would look to short SIA until market cap reaches less than 7bn. Good luck

I just did a discounted free cash flow analysis of SIA.

They will be projecting negative free cash flow in the upcoming years.

This is not a good sign for any company.

Yes if you have holding power of course hold! Its a good long term play! (Any government backed should be okay)

Tbh, like what many have already mentioned, SIA is highly unlikely to return back to its former glory of 5.2 in 1-4 years let alone ever. Also, don't bank on their dividend payouts HAHA, cause unlikely not to suffer cuts. I would suggest calculating your opportunity cost and what it would look like cutting loss on this stock and invest in other performing stocks which have a strong trend upwards currently (medical, gloves, tech, semiconductor, etc).