It was said to be undervalued before the Coronavirus pandemic when the SP sat in the high 30's Young people today aren't as scared as the older generations in taking risks & that should bode well for SSTY. As long as folk have money they'll be itching to travel again a.s.a.p Fingers crossed.
The amount of traffic using our roads each day is growing at a fair rate & should continue to do so. That should bode well for a rising oil price & that will suit certain governments, who take a nice chunk of fuel duty from each litre purchased.
Why have things got worse ? More people are now using their vehicles, certain restrictions are being eased in multiple countries, the oil price is recovering from being in negative price territory. People all over the world are itching to drive around & go on a holiday etc etc. Only overproduction will keep prices low & it would be no surprise for "something to happen" that pushes oil prices to around $80-100 a barrel.
Reply to Gaspunter - If the government is paying workers 80% of their incomes then they won't run out of money & they'll also have more funds available to spend due to not being able to go to pubs, restaurants or on holiday :) HL is will still be making money on millions of trades throughout this mess.
SSTY are the only AIM share I've been adding over the last few days. I purchased leisure section shares last week like Cineworld at 24.25p & sold most of them the next day at 72p & then i invested the profits into PRU, BP, Marstons & TUI.
Businesses are being supported through this shart term issue & customers are still paying loans, mortgages etc Under rules implemented after the financial crash - all banks were ordered to make themselves more reslient to problems such as Covid-19. De-rampers on here are as bad as panic buyers in the supermarkets !!
50/50 to survive ? If a company with this sort of turnover can't weather a few weeks of drastic action = it's time to pack up ! This has been up around 1800p during the last 2 years, So any really bad news is already priced in under 300p
I've bought in at under 1700p & I'll add on any further weakness in the sp. First time I've held any shares in Shell directly. Fear creates buying opportunities & these were tipped as a buy when they were over 2200p
I don't think young travellers will be that bothered about a virus that only seems to take the lives of weaker, more vulnerable people. Sentiment will change If tens/ hundreds of thousands die in a global pandemic ! I'll be adding below 30p & if travel remains largely unaffected TUI looks cheapish at around or below 700p.