facebookIs now the right time to buy SIA shares? - Seedly

Anonymous

05 May 2021

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Stocks

Is now the right time to buy SIA shares?

The price seems plunged a lot and SIA has a strong background to rebounce in future.

Discussion (6)

What are your thoughts?

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Do you mind sharing why SIA has a strong background to rebounce? I may be missing something and I want to hear from your POV as well.

Poor Financial figures

It has been having negative cashflow and high debt even before COVID. Revenue and net income growth hasn't been consistent as well. It is in a highly competitive and cyclical industry and has no moat.

No moat

To Singaporeans SIA maybe a pride and joy however if SIA were not around, the airline industry would not really be affected as people would just pick another airline. Contrast this to MSFT or GOOGL. Can you imagine if these companies suddenly cease the exist tomorrow? How the world and different people's lives will be impacted?

Convertible Bonds

SIA has issued many convertible bonds in the past and may not be the last. This dilutes the shares and reduces intrinsic value per share over time. Contrast this to companies buying back shares when it is undervalued and giving back to the shareholders.

Conclusion

I'm not saying you can't make money in SIA, you can make money in any stock/asset with various ways as long as you know how. I personally feel there are much easier companies to invest in. In investing, You don't get a strike if you don't swing.​​​

You can't touch this!

Just trust the community for this.πŸ˜†

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Hi there anon, what's the reason to invest in SIA? Is it just based on share price? If so, are you l...

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