SIA Transaction Update

I can't remember when did I buy SIA.. should be around October last year.

I bought 800 SIA shares at around 10.70 (that time I haven't develop the habit to record down my transactions), and sold all of them at 10.83 this morning. This investment should generate 100+ capital gain and 160 dividend (0.09 per share received last year and 0.11 per share received in August). Around 3% profit without consider the transaction commission. Slightly better than bank fixed term deposit, but if compare with STI it is not a good investment.

I cannot remember the exact reason why I buy SIA, probably due to previous year high dividend. I have to admit that I didn't study the company carefully and the 'investment' is more like gamble.

I think the bad return rate might due to the following qualitative and quantitative factors:

1. High PE rate

2. High PB rate

3. Tough industry environment

Even though the report announced yesterday was quite good, I am quite worried about its future performance. The oil price should slowly going up, and USD might goes up against SGD which will result in a much higher fuel cost. I also noted that the passenger yield is getting lower every year. Personally I bought Turkish Airways this time from SIN to FCO, because SQ charges a very high price for my return ticket in January.. Well compare the service and the quality of the economy class of both airways, I still find that SQ is a better choice.

Did anyone noticed that their booking app is now functioning much faster than before? It took me forever to use the booking app the check the award ticket before, but few months back when I use it to book award ticket from Phuket to Sin to Shanghai, it actually response quite fast. Oh year personally I think their award system is quite user friendly, and hope that they can create a family link account in the future. I got Etihad membership and found the whole system very hard to use. Under comparison I think SQ is still a good quality airways..

I will look back into SIA shares in the future when it is trading at a lower PE or PB rate. And hope I can experience their new business cabin in the future (((:

Thanks for reading.

Cheers.