Dear readers, in my 13 May 2020 post, I shared the names of three Singapore stocks which could be privatised. As a blogger who have been blogging frequently on the Straits Times Index (STI) stocks, I actually left out inadvertently in the aforementioned post one Straits Times Index (STI) stock which could be possibly privatised.
This potential privatisation STI stock is linked to the two potential privatisation stocks in my 13 May 2020 post: SIA stock and SIA Engineering stock. Yes, this stock is also an aviation-related industry and it is none other than SATS stock.
Yes with the current challenging times in the aviation industry, I would think that there is a likelihood that Singapore aviation-related stocks could be privatised, be it SIA stock, SIA Engineering stock or SATS stock. Taking the listed entities off the stock exchange would first and foremost reduce the cost in relation to being a listed entity. And more importantly, the financial status of the company would not be subject to the vagaries of the macro economy.
As of 13 May 2020, SATS closed at $2.76 which is very close to its 52-week low of $2.52. SATS traded with a dividend yield of 6.441% (high dividend yield attributed to the low stock price).
Just last year, Changi Jewel opened and Singapore is also building Terminal Five. I believe these developments could have attracted some investors into the local aviation-related stocks. However, all it takes is for Covid-19 to cast the outlook of the aviation industry into uncertainty.
Please do not invest in any potential privatisation stocks which I have highlighted for any perceived potential privatisation gains or whatsoever. I am just sharing my thoughts on the possible privatisation stocks for Singapore stocks in time to come. They are as summarized: SIA stock, SIA Engineering stock, SATS stock and Sembcorp Marine stock. And not forgetting my long-held view that there should be scope for consolidation of Singapore’s Reits and Trusts too.
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