SATS’ (SGX:S58) share price has been battered by the COVID-19 situation, with a year to date decline of 44% as of yesterday’s closing.
As some of you may have read, I bought SATS at $4.49 earlier in February. I had been following SATS for a long time, and really liked how the company operates and its growth prospects. At that point of time in early Feb, the Covid-19 situation wasn’t expected to spread so rapidly, hence I felt that the dip in price was an opportunity to accumulate. Subsequently, pandemic spread across the globe, resulting in almost all passenger flights at Changi Airport being grounded. With each new travel ban announced, SATS’ share price continued to take a beating, as their main revenue streams were cut off.
Evidently, the aviation industry has been battered by the shutdown of airports and grounding of flights. US airlines have been negotiating bailout packages with the