Thursday, May 24, 2012

SIA - Hedge Against Oil Price


There was an interesting article i read that one reason to buy an Airline is to act as a hedge against Oil price collapsing.

This is a chart of crude oil prices over the last five years



Now if we look at SIA, the best airline company,


There does not seem to be any hedge in operation here.

This is a case where, the in theory explanation does not match with actual reality.


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