facebookSIA share price soared 14% after news that Pfizer is a step closer to getting the COVID-19 vaccine. But for a long-term investor, is SIA worth buying? - Seedly

Anonymous

07 Dec 2020

Stocks

SIA share price soared 14% after news that Pfizer is a step closer to getting the COVID-19 vaccine. But for a long-term investor, is SIA worth buying?

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In fact, according to SIA's most recent quarterly results, the airline carried 1.1 million passengers, 1v1 Battle is a fivefold increase over the previous year. And as you may be aware, this is only operating at 45% of its pre-COVID passenger capacity.

Yu Qi Tan

07 Dec 2020

Student Ambassador 21/22 at Seedly

I think for a long term investor, SIA might not be worth buying. Travel might not be the same as before even with the news of vaccine. Furthermore, SIA is a capex intensive business... there’s no room for organic growth as compared to perhaps software business where they can experience recurring revenues growth and at a high margins. SIA is a cyclical company and usually sees peak demand during the traveling season. Hence, perhaps, it might not be worth buying!

That being said, please do your due diligence before doing anything! This is just my opinions and not a recommendation to do anything! Hope it helps!

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