Nobody know whether SIA will go bankrupt or not. Although, we know that the government will try its best to save SIA but that doesn’t mean investing in SIA will sure profit. Look at Malaysia airline...
Investing in SIA is Extremely risky.The airline industry might not even recover soon. SIA raised lots of money through loans and equity recently. SIA is burning through a huge amount of these cash every day just to survive. The company must find ways to make money and pay off the loans too. The airplane restaurant profit is probably not sufficient to pay off the debt.
It is not sustainable to be relying on new loans/ issued equities to survive. If the airline industry do not recover quickly, SIA might run out of cash and file for bankruptcy, hurting all shareholders. Also, look at the fuel hedge losses SIA incurred. This is not a short term problem
At the end of the day investing in SIA can be very rewarding if the airline industry recover rapidly. High risk, high reward. I will avoid it.
Some people might say invest in SIA now because the share price is extremely low, this is just wrong. Share price should not be the main factor to look at when choosing a investment. Share price are just numbers, there’s a business behind every share price/ number. you should look at the business instead...
Nobody know whether SIA will go bankrupt or not. Although, we know that the government will try its best to save SIA but that doesn’t mean investing in SIA will sure profit. Look at Malaysia airline...
Investing in SIA is Extremely risky.The airline industry might not even recover soon. SIA raised lots of money through loans and equity recently. SIA is burning through a huge amount of these cash every day just to survive. The company must find ways to make money and pay off the loans too. The airplane restaurant profit is probably not sufficient to pay off the debt.
It is not sustainable to be relying on new loans/ issued equities to survive. If the airline industry do not recover quickly, SIA might run out of cash and file for bankruptcy, hurting all shareholders. Also, look at the fuel hedge losses SIA incurred. This is not a short term problem
At the end of the day investing in SIA can be very rewarding if the airline industry recover rapidly. High risk, high reward. I will avoid it.
Some people might say invest in SIA now because the share price is extremely low, this is just wrong. Share price should not be the main factor to look at when choosing a investment. Share price are just numbers, there’s a business behind every share price/ number. you should look at the business instead...