A Request From Reader - Singapore Airlines Ltd (SIA)
A reader recently asked about my comments about "Singapore Airlines Ltd" (SIA) and whether it is worth to collect at $10.60? (As of today, it is $10.65.) So here are my comments: 1. Business dependent on tourism and economy - Recently my boss went overseas for work and took SIA. She commented she was very worried about the economy, because when she took the business class and there was almost no-one. Do note that this was a Friday night, which usually will mean the business class will be packed. To her this is the barometer of our economy - Less people taking business class meant that the economy will be getting worse. In this context, you can also use this as an estimate of the future of SIA business. 2. Fixed assets which are mostly planes - Although planes are fixed asset with a resale value, but the actual number of buyers are limited and thus, planes are not easy to sell off. In this situation, this meant that if SIA intend to sell any of their planes to get so...