I was bearish on travel and tourism related shares globally since my early posts on SIA, Cathay Pacific, Delta Airlines, Boeing, etc.
Now, I am cautiously bullish on airline stocks and some related tourism stocks which I will cover them shortly. For SIA, it does not have the benefits like China where it not only recovers fast from Covid-19 but it has large domestic markets where the locals and travel from one province to another. Singapore is way too small for that !
It's survival depends on the global travellers from across the globe that come to Singapore for business and holidays. Read how bad its business has suffered this year !
But the government has recently announced travel bubble between Singapore and Hong Kong. Read article here
And to see how much people want to travel, the tickets were sold out within a day !!!!
Now ,the government is looking into forming travel bubble with South Korea, Japan and Thailand.
With the school holidays coming soon and the excitement and relief that people are awaiting for the vaccine for Covid-19, this might help SIA share price to pick up much faster than expected.
However, a word of caution, the global travel market is still weak and many logistic issues have yet to be sorted out - testing for Covid, visas application , if needed, and many more. Therefore, if you are keen to buy some shares of SIA, you are in some way, picking it up at bottom price.
I am not certain if it will hit the 14 dollars peak in year 2000, that seems like a tall order. At 4 dollars now, I am considering it to hit 8 dollars in the next few years. My position size would be small for a start as I need to monitor the situation. There are other tourism related stocks that , imo that offers a better rate of returns.
Now, I am cautiously bullish on airline stocks and some related tourism stocks which I will cover them shortly. For SIA, it does not have the benefits like China where it not only recovers fast from Covid-19 but it has large domestic markets where the locals and travel from one province to another. Singapore is way too small for that !
It's survival depends on the global travellers from across the globe that come to Singapore for business and holidays. Read how bad its business has suffered this year !
But the government has recently announced travel bubble between Singapore and Hong Kong. Read article here
And to see how much people want to travel, the tickets were sold out within a day !!!!
Now ,the government is looking into forming travel bubble with South Korea, Japan and Thailand.
With the school holidays coming soon and the excitement and relief that people are awaiting for the vaccine for Covid-19, this might help SIA share price to pick up much faster than expected.
However, a word of caution, the global travel market is still weak and many logistic issues have yet to be sorted out - testing for Covid, visas application , if needed, and many more. Therefore, if you are keen to buy some shares of SIA, you are in some way, picking it up at bottom price.
I am not certain if it will hit the 14 dollars peak in year 2000, that seems like a tall order. At 4 dollars now, I am considering it to hit 8 dollars in the next few years. My position size would be small for a start as I need to monitor the situation. There are other tourism related stocks that , imo that offers a better rate of returns.
Comment:
Those who have yet to get a chance to long this blue chip might want to wait a while more. The pull back could see SIA revisit 3.93 as support before rebounding. If it does so, that might be a good place to go long or add more. I believe 2021 and beyond, we should see clear blue skies once more filled with SIA planes again.
