SATS (SGX:S58) – Is It Still A Good Buy Right Now?
By Dr Wealth • June 10, 2020
Investors had driven SATS stock (SGX: S58) to 5-year lows as COVID-19 spread globally in the first quarter of 2020.
With Phase One of Singapore’s economic re-opening underway, the question on many (potential) investors’ minds is…
Is this in-flight catering darling still good to buy post-COVID?
Here are some thoughts.
Earnings Recovery May Be Longer Than Expected
While investors are getting optimistic about the looser circuit breaker restrictions in Singapore, note that the global aviation and travel industry is still hurting badly from the COVID-19 pandemic.
Most of the world is still not ready for leisure travel – and this includes Singapore, which as at 7 June 2020, has reported 383 new cases – of which 14 are within the community.
Although we’re certainly past peak cases in April, there is still a lot of uncertainty and fear about fully opening up our borders for fear of a “second wave” of infections – both from the government and from Singaporeans....