I have always wanted to buy SIA. It is one of the premium brand/stock in Singapore. However, the price is high and there are many associated risks with the stock, such as ridership numbers, oil price, stiff competition, etc.
I think SIA Engineering Co is a safer and less volatile option. SIA has a substantial stake in SIA Engineering Co, which is a leading aircraft maintenance, repair and overhaul (MRO) company providing MRO services not only to the SIA fleets, but to other airlines fleets as well.
Air travel is here to stay and maintenance activities cannot be compromised for the air transport industries. Even if SIA's ridership numbers fall, SIA will not compromise on maintenance. Especially that we already have one bad example in SMRT.
After buying into SGX in November and now SIA Engineering Co, I have used all my investable capitals. I can only stay at the sideline and watch the market now while I return back to "saving" mode.
However, the market is very tempting now, especially some of the Reits and I have to restrain myself from using my emergency fund.
have you consider the value vs price that you purchase at?
ReplyDeleteKyith,
ReplyDeleteThanks for reading my blog. I am investing for long term. SIA Engg has decent dividend payouts and I am taking advantage on the recent dip to buy in.
Farmer.
the price dipped but isnt all the growth priced in?
DeleteThese 2 are very good buy. They have little debt. I am wating for a crash to come. I believe one is on the horizon. I believe all these credit driven growth are unsustainable.
ReplyDeleteBe ready to average down.
Yes. A crash will come, just a matter of time. Be ready.
DeleteFarmer.
i think you guys should investigate abit on its weakening model.
ReplyDeleteHi Kyith,
DeleteThanks for your comments.
Farmer.