Yesterday I was watching a news article on the financial turmoil on TV and was struck by something an analyst said. He reaffirmed that one of the best stocks to buy now is the SIA shares. His main reason was that SIA is cash rich and is not like any other airlines in the world which operate on borrowed money form banks.
Some years ago, I remember the then CEO of SIA said that he was relieved to get rid of the huge reserves of cash by buying 49% stake in Virgin Atlantic. The buying spree cost US$1 billion. He was delighted not so much because of the purchase but to rid the vast sum of cash SIA was holding so that he did not have to answer the shareholders' persistent query of what to do with the cash.
So from the above you may conclude that SIA is worth buying at current price of S$12,down from $15.60 a week ago. Go for it man cos boh tong is seldom wrong when comes to SIA shares ( BT bgt 10,000 at average of $12.50)...sure win one la,maybe in 3 to 4 weeks time it would go up to $14 per piece.....and then unload.