Should I liquidate my SATS (S58) holdings? Holding onto 2,000 shares at $3.64 per unit. Please see description for more details?

Please do not sell at this time. In fact you should buy more of the stocks or take scrip dividends if possible. Since the price is the lowest now, wait for 5 more years. Singapore will always be the aviation hub of Asia. It is just when it is happening

Hi there,

Depending on when you bought in, as 3.64 was either 5 years ago or recently during February's downswing, the timings were either good or unfortunate.

Your thought process isn't wrong, it's just that no one accounted for COVID to have an extended effect on the industry.

In my opinion, SATS is a long-play for any investment portfolio. Although their primary source of income is via aviation related activities, they have also diversified their activities in Singapore to have alternate revenue streams. Do expect some time for it to recover, but if you do liquidate your investment, redeploying it to try and make up 37% of paper loss, would be challenging.

Some options could be averaging your position down, or using your current liquidity to explore other investment opportunities. It's hard to say what might be the best option, so you would need to assess your investing strategies and what is your desired goals.

Hope I was able to shed some insight!

*This does not constitute as investment advice. Please do your own due diligence before making any investment-related decisions.