In early February, I bought SATS at $4.49. Back then, the Covid-19 situation seemed to be largely confined within China, with just a few cases in Singapore. I think at that point of time, most of us would have expected Covid to blow over fairly quickly, and be able to get on with our lives.
How wrong were we. And how wrong was I to initiate a position in SATS in early Feb. Over the next few months, with most countries imposing travel bans, air travel and tourism were completely decimated. By March, SATS’ share price had collapsed to around $2.50, more than a 50% decline from its 52-week highs.
When I bought SATS at $4.49 in Feb, in theory, it seemed a pretty straightforward strategy – Covid would surely affect SATS, but if we don’t know exactly how serious the impact would be,...